On February 20, 2026, the Senate Standing Committee on Water Resources highlighted a critical $3.5 billion funding gap in the Diamer-Bhasha Dam project, warning that delays in its completion, along with encroachments in floodplains, are increasing flood risks across Pakistan. Currently, the dam is only 21% complete, and Wapda officials indicated that additional funding is necessary to finish the project, which is being financed through the Public Sector Development Programme. This situation underscores the urgent need for enhanced financial management and infrastructure development in the country. Meanwhile, the Federal Flood Commission reported that while Punjab has cleared 2,625 encroachments from waterways, 83 structures remain, emphasizing the need for stricter enforcement of zoning regulations in flood-prone areas.
INFRASTRUCTURE
Senate Warns of $3.5 Billion Gap in Diamer-Bhasha Dam

Pakistan faces a $3.5B funding gap for the Diamer-Bhasha Dam, increasing flood risks. Meanwhile, financial mismanagement in railways and road maintenance raises concerns over infrastructure stability.
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