Business Recorder
ISLAMABAD: The Ministry of Defence has warned the Prime Minister’s Office and Ministry of Finance that failure to clear pending compensation claims of victims of the Mangla Dam Raising Project could trigger protests, potentially impacting the area’s internal security, well-informed sources told Business Recorder . Citing the issue of pending compensation of Mangla Dam Raising Project, the MoD noted that the project, executed from June 2004 to September 2007, aimed at restoring storage capacity lost due to sedimentation. According to the ministry, the project resulted in the inundation of 15,780 acres (64 square kilometres) of land in Mirpur district of Azad Jammu and Kashmir (AJ&K), displacing residents of 118 villages. READ AlSO: Diamer-Bhasha Dam: acquisition of land, other matters discussed In June 2003, a compensation package worth Rs26 billion was agreed between WAPDA and the AJ&K government to cover land acquisition, housing compensation and resettlement. However, sources said that a significant portion of payments to victims remains outstanding. So far, only 46 individuals out of 449 cases have received partial compensation, while disbursement of Rs4.4 billion remains stuck with the Ministry of Finance. “Delay in disbursement of compensation is giving rise to grievances among the affected people, leading to legal challenges and potential protests, which may impact internal security dynamics,” the MoD cautioned. The Ministry urged Special Secretary to the Prime Minister, Shakeel Ahmed Mangnejo, and Finance Secretary ImdadUllah Bosal to expedite the release of pending funds to address the concerns of displaced families. The issue has also been raised during negotiations between representatives of the AJ&K Action Committee and both federal and AJ&K governments. For resettlement, a new city near Mirpur was developed for displaced persons, along with four small towns in the vicinity of the reservoir. In August 2011, the Supreme Court disposed of a petition filed by victims seeking compensation, ruling that the matter fell outside its jurisdiction. The petitioners were directed to approach the Azad Jammu and Kashmir Supreme Court instead. WAPDA had informed the court that it had already transferred over Rs50 billion to the AJ&K government for compensation. It had also awarded a Rs164 million contract to consulting firms for a feasibility study to upgrade the 1,000MW Mangla Power Station, which was scheduled for completion in October 2011. The Mangla Power House currently generates up to 1,150MW during high reservoir levels, exceeding its rated capacity of 1,000MW due to permissible overloading of 15 percent. Copyright Business Recorder, 2026
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