Major Cost Inflation Discovered in Kachhi Canal Project: Rs6.5 Billion Overestimated

A recent independent validation has exposed a massive Rs6.5 billion cost overrun in Pakistan’s Kachhi Canal restoration project, revealing deep-rooted inefficiencies and financial irregularities. This third-party audit, requested by Planning Minister Ahsan Iqbal, confirmed that the actual cost of reconstruction for the flood-damaged canal should be around Rs4.1 billion, far below the Rs10.6 billion previously estimated by the Water and Power Development Authority (WAPDA). This audit highlights discrepancies stemming from inflated work quantities, not rate differences, in several key construction components, such as embankment filling and debris clearance.

The Kachhi Canal project has faced controversy since its inception in 2002, and this latest revelation has raised questions about the accountability mechanisms within WAPDA. The project, designed to enhance agriculture in Balochistan, has struggled with mismanagement, culminating in these cost irregularities. Planning authorities are now considering a revised project proposal to reflect the third-party validated cost, and officials are expected to escalate the matter to the Prime Minister for further investigation.

Senior officials confirm that the Central Development Working Party had conditionally approved the project in September for Rs14.7 billion, subject to this validation. The ministry is also pushing to make the canal partially operational, aiming for a 500-cusec water flow before mid-November. This partial restoration effort, however, now stands in question as the government evaluates the true costs and structural issues within WAPDA’s oversight practices.