The estimated cost of the Tarbela 5th Extension Project has surged by Rs. 234 billion, increasing from Rs. 82 billion to Rs. 316 billion—an overall rise of 282 percent.
The revised project cost was approved by the Executive Committee of the National Economic Council (ECNEC), chaired by Deputy Prime Minister Ishaq Dar, as part of a package of 16 development projects with a combined estimated cost of Rs. 1.15 trillion.
The significant cost increase comes amid concerns regarding the project’s management, supervision and previous structural issues. An inquiry into the collapse of the downstream cofferdam reportedly attributed the failure to design changes, inadequate supervision and delayed administrative action rather than flooding.
Planning Minister Ahsan Iqbal had previously raised concerns about the project’s transparency, management and oversight. The Finance Ministry also sought clarification regarding the substantial cost increase and the repayment mechanism, as the project is being financed through international lenders.
Despite these concerns, ECNEC approved the revised cost of Rs. 316 billion.
The committee also approved several other major development projects, including the Rs. 407 billion Lahore-Sahiwal-Bahawalnagar Motorway, the Rs. 116.6 billion Khwazakhela-Besham Expressway, and a Rs. 29 billion road project connecting Gilgit-Baltistan with Azad Kashmir.
The approved development package also includes the Rathoa Haryam Bridge, estimated at Rs. 10.8 billion, along with a Rs. 56.6 billion wastewater treatment project in Lahore and other initiatives focused on poverty alleviation and education.
Overall, the 16 approved projects carry an estimated cost of Rs. 1.15 trillion, with approximately Rs. 320 billion attributed to additional costs resulting from project delays and rising prices.
