The estimated cost of Pakistan’s Mohmand Dam project has climbed to Rs. 666 billion, marking an increase of around 115% over the past eight years.
Federal officials have largely linked the sharp rise to the depreciation of the Pakistani rupee since 2018. Changes in the exchange rate have increased the cost of various components and activities associated with the large-scale water and power project.
The revised project cost was discussed by the Central Development Working Party (CDWP), but officials did not reach a final decision on the proposed increase. The meeting reportedly ended after the available time ran out, leaving the revision awaiting further consideration.
Despite the uncertainty surrounding the updated cost, construction work on the dam is continuing. Around 57% of the project had been completed as of last month, according to officials.
Mohmand Dam is being developed to serve several important purposes. The project is expected to increase Pakistan’s water storage capacity while also producing electricity. It is additionally planned to provide drinking water to Peshawar.
The project is considered significant for addressing water and energy requirements in the region. Its water storage component is expected to support the management of available water resources, while electricity generation could contribute to the country’s power supply.
The substantial increase in the estimated cost, however, has become a key issue as authorities review the project’s financial requirements. The CDWP’s inability to decide on the revised estimate means the matter will need to be considered again.
With more than half of construction reportedly completed, attention remains on both the project’s progress and the government’s decision regarding its revised financial allocation. The final cost will depend on the outcome of the ongoing review.
