ISLAMABAD: The Supreme Court of Pakistan has ordered the closure of the Supreme Court and Prime Minister of Pakistan Diamer-Bhasha and Mohmand Dams Fund, initially opened in 2018 to generate funds for mega dam projects. As of October 4, the account held Rs23.6 billion, predominantly from mark-up paid by the federal government.
A three-judge bench, including Chief Justice of Pakistan Qazi Faez Isa, Justice Naeem Akhtar Afghan, and Justice Shahid Bilal Hassan, directed that the account’s funds, managed by the State Bank of Pakistan (SBP), be transferred to the Public Account of the Federation under Article 78(2)(b) of the Constitution.
Court’s Directions for Fund Management
The Supreme Court instructed that a sub-account in the public account of the federation be created, or alternative measures be taken to lend the amount to the best-rated private scheduled banks to earn mark-up. The accrued mark-up and principal will be used for the dams’ construction when needed.
The court’s decision followed a joint application by the federal government and the Water and Power Development Authority (Wapda), requesting the transfer of funds to the official Wapda account at the National Bank of Pakistan (NBP).
Financial Details
The SBP’s report stated the account held a total of Rs23.67 billion as of October 4, 2024, with Rs11.47 billion collected and Rs12.19 billion earned in mark-up. The federal government paid the mark-up, as confirmed during the court inquiry.
Wapda’s counsel highlighted that the projected costs for the Diamer-Bhasha Dam and Mohmand Dam are Rs740 billion (Rs480 billion for Diamer-Bhasha and Rs260 billion for Mohmand). The court noted that the fund’s amount represents only 3.2% of the required construction costs, with a significant portion contributed by the government through mark-up payments.
