Govt rebuts claims of cancelling power-generation component of Diamer-Bhasha Dam

The Power Division on Saturday rejected a report claiming the government had scrapped the power generation component of the Diamer-Bhasha Dam, calling it fake news. In a post on X, the energy ministry's division said the 4,500-megawatt generation element is listed as committed in current and future IGCEP plans. The rebuttal responded to a piece by Brief, a reader-supported publication.

The disputed report, which Brief said drew on a leaked Economic Affairs Division document, argued that the dam could first be developed as a storage reservoir. It also claimed that independent power producers lobbied for the decision and received large payments even when their plants produced little or no power. The Power Division responded that new IPP business has permanently closed in Pakistan since the free electricity market was established by the present government.

The division cautioned against tying IPPs to the project and sensationalising it, saying such claims rest on baseless assumptions. Its rebuttal therefore addresses both the claimed cancellation and the alleged IPP link.