ISLAMABAD: The depreciation of the Pakistani rupee against the US dollar has pushed up the estimated cost of two of the country’s largest hydropower projects by a combined Rs1.896 trillion, according to figures presented in the National Assembly.
The Ministry of Water Resources informed the House that the cost of the Diamer-Bhasha Dam has risen by Rs642 billion, from Rs479 billion to Rs1.121 trillion. The ministry attributed the increase to changes in foreign exchange rates and said a revised PC-I has been submitted.
The Dasu Hydropower Project has seen a steeper escalation. Its estimated cost has climbed from Rs486 billion to Rs1.740 trillion, an increase of Rs1.254 trillion, or roughly 260 percent.
The government also acknowledged that sharply higher fuel and construction material prices have added to the financial burden of infrastructure development. According to the figures presented, the price of a cement bag has risen 204 percent, from Rs530 to Rs1,610. High-speed diesel has surged 472 percent, from Rs72 to Rs414 per litre. Steel and iron bars have become 268 percent more expensive, with prices rising from Rs72,000 to Rs265,000 per metric tonne.
The disclosures highlight the growing exposure of long-gestation public projects to currency volatility and input cost inflation, particularly where significant components are tied to foreign currency.
BBC-featured Content Specialist with a sharp eye for search intent and a proven ability to turn content into a growth engine. I leverage cutting-edge digital marketing tools to craft strategies that fuel organic traffic, amplify brand growth, and own the local SEO landscape, particularly across the competitive real estate market. I help brands dominate search rankings and convert visibility into measurable business success.
