Pakistan’s Balakot hydropower project completes river diversion

Pakistan’s Balakot Hydropower Project, developed by China Gezhouba Group Company, has completed river diversion and closure operations, allowing the project to move into the main dam construction phase.

The 300 MW run-of-the-river project is located on the Kunhar River in Khyber Pakhtunkhwa, approximately 220 km from Islamabad. It is financed by the Asian Development Bank and the Asian Infrastructure Investment Bank and is designed to increase Pakistan’s share of clean energy in a power mix dominated by thermal generation.

The project has drawn attention in India due to its location on the Kunhar River, a tributary of the Jhelum River. Under the Indus Waters Treaty (IWT) of 1960, India controls the eastern rivers (Sutlej, Beas, Ravi) while Pakistan controls the western rivers (Indus, Jhelum, Chenab). Although the Balakot project does not directly violate the treaty, India has raised concerns about its potential effect on Jhelum River flows, which could impact irrigation and hydropower projects in Indian-administered Jammu and Kashmir.

Tensions have escalated following India’s suspension of the IWT in April 2025, citing security concerns after a terrorist attack in Pahalgam. Pakistan has warned that attempts to obstruct or divert water under its control would be treated as an “act of war.” The Balakot project highlights the challenges of managing shared water resources in a politically sensitive region.