Pakistan is among the developing countries that have long been facing an energy crisis. The shortage of electricity, heavy reliance on expensive imported fuels, and increasing threats posed by climate change have highlighted the need for new thinking, sustainable planning, and eco-friendly solutions in the energy sector. In this context, the under-construction Dasu Hydropower Project on the Indus River in the Kohistan district of Khyber Pakhtunkhwa is expected to be a game changer not only for the national power grid but also for the economic, environmental, and social future of the country.
This project, launched under Pakistan Vision 2025 and the Power Policy 2013, is being executed under the supervision of WAPDA. Dasu Dam is being constructed approximately seven kilometers north of Dasu Town on the Indus River. It is a “run-of-the-river” hydropower project, which means electricity will be generated by utilizing the natural flow of the river without the need for a large reservoir. This method of construction is environmentally sustainable and technically safe.
Dasu Dam is a Roller Compacted Concrete (RCC) gravity dam, with a height of 242 meters and a width of approximately 570 meters. It will be one of Pakistan’s tallest RCC dams. The reservoir will stretch about 74 kilometers in length and will have a storage capacity of 1.41 billion cubic meters of water. Situated upstream of the Tarbela Dam, its primary objective is electricity generation.
The project is being executed in two phases. In the first phase, six French-made turbines will be installed to generate 2,160 megawatts of electricity. In the second phase, an additional 2,160 megawatts will be added, bringing the total capacity to 4,320 megawatts. Once completed, the project will generate around 21 billion units of electricity annually – affordable, renewable, and environment-friendly power.
The project officially commenced in 2017. Although it initially faced delays due to land acquisition issues, resistance from local communities, security concerns, and the global COVID-19 pandemic, significant progress has been made in recent years. In 2023, tunnels for river diversion were completed, and the starter dam was also finalized. It is expected that the first phase of electricity generation will begin by the end of 2026 or early 2027.
This project is also a blessing for the local population. So far, over 3,700 jobs have been created, with a majority filled by local residents. During peak construction, this number is expected to rise to 8,000. With support from the World Bank and other partners, schools, healthcare centers, roads, bridges, and women’s education and vocational training programs have also been launched in the region. The enrollment of girls in education is projected to increase by up to 70%, reflecting the social impact of this transformative project.
Financially, the initial estimated cost of Dasu Dam was PKR 486 billion. However, due to inflation, currency depreciation, rising international construction costs, and other factors, the total cost has escalated to PKR 1,737 billion (approximately USD 6 billion). The project is being financed through a consortium of local banks, Chinese companies, WAPDA’s internal resources, and major contributions from the World Bank and the Asian Development Bank. In June 2024, the World Bank approved an additional loan of USD 1 billion, underscoring the global significance of the project.
Dasu Dam is not merely a source of power generation; it is also a major initiative for environmental protection. It will reduce carbon emissions by nearly 5 million tons annually – a significant step toward improving environmental health. Moreover, the dam will trap sediments and reduce silt flow into the Tarbela Dam, potentially extending its lifespan by at least 40 years.
The project has faced significant security challenges. In a tragic incident in 2024, five Chinese engineers and one Pakistani worker were martyred in a terrorist attack. Since then, enhanced security measures have been implemented, and construction activities have resumed under full protection.
One of the most crucial aspects of this project is its potential to reduce Pakistan’s dependency on costly imported fuels. Experts estimate that the project will save the country approximately USD 1.8 billion annually. This will strengthen Pakistan’s foreign exchange reserves and reduce the cost of industrial production.
The importance of Dasu Dam lies in its ability to provide a long-term solution to the country’s power crisis. It will benefit not only domestic consumers but also industries by ensuring an uninterrupted power supply. This will accelerate economic growth, generate employment opportunities, and pave the way for Pakistan’s energy self-reliance.
The Dasu Hydropower Project is not just an infrastructure venture but a symbol of Pakistan’s economic, environmental, and social advancement. Its timely completion, transparency, and continuity will play a pivotal role in overcoming the energy crisis. This project will become a valuable asset for future generations and will prove to be a game changer for the nation’s economy and sovereignty.
