Prime Minister Nawaz Sharif has given go ahead signal to construct Diamer-Bhasha dam on Indus River this year. The project will cost $14 billion. According to the official circles, the proposed plan will be executed on self-help basis after the World Bank could not resist pressure from India and refused to provide fund for it. The Asian Development Bank is also reluctant to fund the project, but the government has adopted a strategy to divide the project into two parts to reduce its size and financial requirements. The project will be now funded by diverting the allocations of the Public Sector Development Programme. However, the financing at the stage of power generation would be arranged on commercial basis by the Ministry of Water and Power by its own means. The government has already spent $800 million on the acquisition of land and will spend another millions in seven years starting from fiscal year 2017-18.
The construction of new dams is need of the hour as the country has been facing energy crisis for the last many years. The new Indian government is trying its best to harm the interests of Pakistan and is pressuring the World Bank on Indus Water Treaty to block water flow into Pakistan. India is already building dams on its side to deprive Pakistan of its share of water. The successive governments in Pakistan also failed to adopt a consistent policy toward India and rise and fall in the relations went in favour of that country. However, the prime minister’s initiative is a good omen and a timely step in the right direction. An international consortium of consultants will be involved for annual allocations. The groundbreaking of the project will be held next year and the government will ensure the provision of $700 million to the project annually from the public sector development programme. A committee has been set up to complete financial aspects of the proposed dam which is likely to produce 4,500 megawatt electricity after its completion over a period of seven years.
The enemies of Pakistan are always active to bulldoze any project of vital importance for the country. The Kalabagh dam, which is regarded as the game change in the energy sector, is opposed by the strong Indian lobby within the political elite of the country. Even the dictator Musharraf could not dare start the project what to speak of a political government. It is hoped the prime minister will be able to overcome all hurdles in the way of Diamer-Bhasha dam. The country needs to open up its economy to the world investors.
