Rupee Devaluation Adds Billions to Pakistan's Major Dam Projects
The government tells the National Assembly that rupee depreciation increased fuel and construction prices and raised major dam project costs.
The federal government has informed the National Assembly that the depreciation of the Pakistani rupee has increased petroleum and construction material prices, while also raising the estimated costs of major dam projects.
According to the information presented to lawmakers, cement prices increased by 204%, with a bag rising from Rs530 to Rs1,610. Steel and iron rod prices also went up by 268%, from Rs72,000 to Rs265,000 per metric ton.
Major Increase in Dam Project Costs
The cost of the Diamer Bhasha Dam increased from Rs479 billion to Rs1,121 billion, adding Rs642 billion to its estimated expense.
Similarly, the estimated cost of the Dasu Hydropower Project rose from Rs486 billion to Rs1,740 billion.
The government attributed much of the increase to currency depreciation and higher construction expenses.
Impact on Fuel Prices
The National Assembly was also informed that high-speed diesel prices reached Rs472 per litre amid the rupee's depreciation.
The figures highlight how changes in the exchange rate can affect imported materials, energy prices and large infrastructure projects across Pakistan.
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