The Kunhar River in Pakistan's Khyber Pakhtunkhwa province paused its flow this weekend as the China-built Balakot Hydropower Project achieved a critical milestone. The river closure marks the transition to the dam's main construction phase, bringing Pakistan closer to addressing its chronic energy challenges through renewable infrastructure.
Developed by China Energy Engineering Corporation (CEEC) and constructed by subsidiary China Gezhouba Group Third Engineering Co., Ltd., the 300-megawatt project began in 2021 and now stands as the largest hydropower initiative in the province. Syed Habib Ullah Shah, CEO of the Pakhtunkhwa Energy Development Organization, emphasized its transformative potential at the ceremony: 'This project will power homes, reduce import reliance, and advance our climate commitments through clean energy.'
Mao Huigang of China Gezhouba Group highlighted the project's local impact: 'Over 2,000 jobs have already been created, stimulating growth in construction, materials, and service sectors.' Upon completion in 2026, the dam is projected to generate 1.144 billion kilowatt-hours annually – enough electricity for 1.8 million residents while offsetting 1.2 million tons of carbon emissions yearly.
The $412 million initiative forms part of the China-Pakistan Economic Corridor (CPEC), strengthening energy cooperation between the two nations. Analysts note its strategic importance in stabilizing Pakistan's power grid, where seasonal shortages currently cost the economy an estimated $7 billion annually.
