Fake news: Govt dismisses report claiming Diamer-Bhasha Dam power component abandoned

The Power Division said the generation component remained a “committed project” under the country’s long-term electricity planning framework. It also rejected suggestions that independent power producers (IPPs) had influenced the project’s status., the new IPP business had “permanently closed” in Pakistan following the establishment of a free electricity market by the present government.

“Any attempt to link IPPs with this project and sensationalise it is based on nothing but fake assumptions,” the Power Division said. Fake news.

Diamer Basha Dam generation component is a committed project in both existing and future IGCEP documents.pic.twitter.com/OhDLlowwoE— MOE- Power Division, Government of Pakistan (@MoWP15)August 29, 2026The controversy followed a report by Brief, which claimed that the government had decided to drop the 4,500MW power-generation component of the Diamer-Bhasha Dam.

The report cited an alleged leaked internal document from the Economic Affairs Division and a source familiar with the decision-making process., the alleged decision was linked to concerns over Pakistan’s existing surplus generation capacity. It further claimed that the dam could initially be developed primarily as a water-storage reservoir, with the hydropower component potentially taken up at a later stage.

The report also alleged that lobbying by IPPs had played a role in the decision, arguing that postponing the hydropower component could help preserve the existing electricity market structure. It further cited concerns from hydropower engineers that delaying key power-generation infrastructure could lead to technical and financial complications.

Structures including intake connections, isolation gates, tunnel sections and other waterway facilities, the report claimed, need to be incorporated while the dam is being constructed and the site remains accessible. The government, however, has categorically rejected the central claim, maintaining that the power-generation component remains part of Pakistan’s current and future generation-expansion plans.