In response to the growing water crisis and falling river inflows, the Government of Pakistan has announced plans to construct a new dam on the Chenab River, aiming to enhance water storage capacity and support agriculture, energy, and drinking water needs.
The new Chenab dam is expected to cost around Rs. 220 billion, and will join other major water infrastructure projects like the Diamer-Bhasha and Mohmand dams, both of which are facing funding challenges due to rising costs and delays.
Officials revealed that the move comes amid significant reduction in water flow from India, especially through the Chenab River, which has been impacting irrigation supplies and crop production across Punjab and other agricultural regions. The situation has worsened due to unilateral upstream water management by India, following the suspension of the Indus Waters Treaty.
To fund the dam, the government initially proposed a 1% water storage levy on goods, but the idea was reportedly rejected by international lending institutions, prompting authorities to explore alternative financial models, including reallocating tax revenues.
Experts warn that without immediate action, Pakistan could face severe consequences during the Kharif crop season, with water shortages affecting both food security and energy generation. Construction of the Chenab dam is being prioritized to ensure sustainable water management and national resilience in the face of ongoing climate and geopolitical pressures.
Government planners are now finalizing designs, feasibility studies, and funding strategies, with construction expected to begin once all approvals are in place.
