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Who pays for dams?

By News Desk
May 12, 2026
The News. —
The News. —

Pakistan has always framed the construction of larger dams as a solution for food insecurity, energy shortages and floods. However, in the case of dams, the spread of benefits might be national, but the costs are mainly regional.

The construction of large dams can involve entire communities being displaced from their ancestral land and uneven compensation, foisting a huge social cost on the local population. While urban centres and industrial sectors turn out to be the main beneficiaries of the enhanced water storage and electricity, the underprivileged segment bears a huge cost. This uneven distribution of costs and benefits is where we need to reconsider and shift our policy towards taking inclusive, transparent and accountable developmental decisions.

Khawaja Abdul Wase

Lahore