MoD Warns PMO, Finance Ministry Over Delayed Mangla Dam Compensation

Mangla-Dam

Islamabad: The Ministry of Defence has cautioned the Prime Minister’s Office and the Ministry of Finance that continued delays in the payment of pending compensation for victims of the Mangla Dam Raising Project could trigger public protests and potentially affect internal security, according to well-informed sources.

The warning highlights growing concerns over unresolved financial claims linked to the large-scale resettlement and land acquisition process carried out under the Mangla Dam expansion project, which was implemented between June 2004 and September 2007 to restore reservoir capacity lost to sedimentation.

The project resulted in the submergence of around 15,780 acres (64 square kilometres) of land in Mirpur district of Azad Jammu and Kashmir (AJ&K), displacing residents from 118 villages.

Under a 2003 agreement, a compensation package of Rs26 billion was finalised between the Water and Power Development Authority (WAPDA) and the AJ&K government, covering land acquisition, housing compensation and resettlement costs.

However, according to sources, a significant portion of the compensation remains unpaid. Out of 449 cases, only 46 individuals have reportedly received partial payments, while around Rs4.4 billion is still pending release from the Ministry of Finance.

The Ministry of Defence warned that delays are increasing public frustration among affected families, leading to legal challenges and the risk of protests that could disturb the region’s security situation.

The MoD has urged the Special Secretary to the Prime Minister, Shakeel Ahmed Mangnejo, and Finance Secretary Imdadullah Bosal to expedite the release of funds and address grievances of displaced communities.

The issue has also been discussed in negotiations between representatives of the AJ&K Action Committee and federal and regional authorities.

For resettlement, a new city near Mirpur and four small towns around the reservoir were developed to accommodate displaced families.

In 2011, the Supreme Court disposed of a petition seeking compensation, directing affected parties to approach the Azad Jammu and Kashmir Supreme Court, stating the matter fell outside its jurisdiction.

Officials noted that WAPDA had already transferred over Rs50 billion to the AJ&K government for compensation purposes and had also commissioned studies for upgrading the 1,000MW Mangla Power Station, which can currently generate up to 1,150MW under high reservoir conditions due to permissible overload capacity.

Story by Mushtaq Ghumman

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