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Pakistan has formally requested an additional $300 million from the World Bank to cover cost escalation on the 1,410 MW Tarbela 5th Hydropower Project. The request is the second top-up under the existing Tarbela 4th Extension Hydropower Project loan, the parent facility through which the Bank is funding the broader Tarbela Dam expansion.
Construction works inside Tarbela Dam's tunnels have disrupted Indus River water releases during the 2026 kharif season, leaving Sindh's paddy growers without enough irrigation water to transplant seedlings. The shortfall has triggered an interprovincial dispute, with Balochistan blaming Sindh for withholding due water shares from Guddu and Sukkur barrages.
Pakistan's ECNEC has formally approved the Diamer Basha Dam, ML-1 railway modernisation, and Thar Rail Connectivity projects at a sitting chaired by Deputy PM Ishaq Dar on 11 June 2026. The approvals carry long-term implications for hydropower capacity, coal supply logistics, and electricity tariff stability across Pakistan.
WAPDA reports that Tarbela Dam has generated 586 billion units of electricity and delivered $460 billion in economic benefits to Pakistan in the 50 years since 1974. The dam's fifth extension, backed by $690 million from the World Bank and AIIB, is under active construction and will raise total installed capacity from 4,888MW to 6,418MW.
Pakistan's Central Development Working Party publicly rebuked WAPDA on Thursday over massive cost overruns and transparency failures on the Diamer-Bhasha Dam and Tarbela 5th Extension projects. The Tarbela 5th Extension alone has ballooned from an original Rs82 billion estimate to Rs316.4 billion and has been referred to ECNEC for urgent review.
Pakistan's Public Accounts Committee has directed the Cabinet Division to submit a full inquiry report on Nespak's alleged multi-billion rupee irregularities, centred on the Rs 43 billion Neelum Jhelum Hydro Power Project. Auditors estimate Rs 42.9 billion in losses from the project, which has been unable to generate power since a second tunnel collapse in May 2024.