Indirect Benefits of Kala Bagh Dam

Kala Bagh Dam

Kala Bagh Dam

Kala Bagh dam project will meet the needs of irrigation water and meet the food production for the growing population in the coming year. This dam is very important for the economic stability of the Pakistan. We can increase our agri. product to build this dam. We can produce cheap electricity which is essential to increase business activities. This dam is very useful for us. It has many benefits in such of them:

Effects on power Generation Cost and Import Bill

Pakistan is in a dire need of cheap hydro power. A higher proportion of cheaper hydel-power vis-à-vis the costly thermal shall impact the overall costs of power generation benefiting the users. The competitiveness of the industrial sector shall improved, giving incentive to production, providing employment and assisting overall economic growth. The hydel energy produced from Kala Bagh would reduce the burden on the country’s inadequate and weak infrastructure facilities. Because of the storage and movement of fuels used in thermal power generation. This can be beneficially used by other sectors, thereby helping in economic growth.

It is estimated that power generated from Kala Bagh is equivalent to 20 million barrels of oil, which would have to be imported. If Kala Bagh Dam is not commissioned then fuel import bill would amount to $1.5 billion / annul. This would mean an additional burden of Rs. 9.6 billion in foreign exchange every year. So Kala Bagh Dam project would reduce such burden and enable these facilities to be utilized by other sectors of the economy producing added benefits.

Effects on Industry and Agriculture

There is also an acute need for electricity to satisfy growing demands from industry even for agriculture to run the reclamation and irrigation tube wells. Because of load shedding Pakistan’s economy is suffering recurring losses on the score. It estimated that in the year 1989-90. The total loss to the national economy was of the order of Rs. 12 billion. Power from the Kala Bagh Dam shall help in bridging the yawning gap between demand and supply of electricity. So this will eliminate the recurring losses, encourage foreign and local investment, expand productive capacity, and value added production and increase exports thereby helping break the stagnation in the economy.

Effects on Fisheries

The reservoir will be able to support a sizable fish stock and it is anticipated that a limited fishing industry will develop over a number of years. WAPDA has acquired successful experience in developing the fishing industry in Mangla, Tarbela and Chashma reservoirs.

Overall Economic Prosperity

Storage of water in the reservoirs has played major role in the national economy. Large block of hydel power from Kala Bagh Dam will have a profound effect in breaking the stagnation in the industry and agriculture sectors of the economy. The proposed Kala Bagh project will increase agricultural production. It also add a large chunk of cheap hydro electricity throughout its useful life. It will also provide other benefits like fish production and social benefits like unlimited employment opportunities in business, trade and public section besides controlling flash food.  

Benefits to provinces

Kala Bagh Dam will be instrumental in raising cropping intensity and bringing some more land to production in various provinces.


The project envisages creation of at-least 3000 employment opportunities during the construction period. This trained man power shall subsequently be absorbed both locally and abroad, stimulate small scale industry, generate wealth and multiply the overall opportunities for employment.

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