As Pakistan faces a worsening energy crisis, one of its most underutilized resources lies nestled in the mountains of Azad Jammu and Kashmir (AJK). With abundant water resources and favorable terrain, AJK offers immense potential for clean, affordable, and renewable energy in the form of hydropower. Yet, this potential remains partially untapped due to infrastructural, administrative, and ecological constraints. While some projects like the Neelum-Jhelum Hydropower Plant have shown promise, many others face delays and disputes over ownership and revenue sharing. This editorial critically examines the scope of AJK’s hydropower capacity, the barriers preventing its full development, and the strategic role it could play in reshaping Pakistan’s energy mix.
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Why Hydropower matters for Pakistan?
Pakistan’s power sector has long struggled with a mismatch between supply and demand, resulting in frequent blackouts, high electricity tariffs, and ballooning circular debt. According to the National Electric Power Regulatory Authority (NEPRA), over 60% of Pakistan’s power generation currently comes from fossil fuels, particularly imported oil and LNG, making the country vulnerable to international price shocks and foreign exchange pressure. In contrast, hydropower offers a sustainable, indigenous alternative with lower operating costs and zero carbon emissions.
Azad Jammu and Kashmir, crisscrossed by rivers like Jhelum, Neelum, and Poonch, holds an estimated hydropower capacity exceeding 8,000 MW. The topography, with steep gradients and continuous water flow, supports efficient run-of-the-river projects that minimize the environmental and social impact of dam construction. Historically, however, despite several memoranda of understanding and feasibility studies, implementation has remained slow due to institutional fragmentation, limited local participation, and geopolitical sensitivities regarding AJK’s autonomous status. Understanding these structural impediments is critical to unlocking the region’s potential.
Hydropower Projects in AJK: Current and Upcoming Initiatives
A number of significant hydropower initiatives are either operational or in various stages of development in AJK. The most notable is the Neelum-Jhelum Hydropower Project (969 MW), a federally funded project located near Muzaffarabad. Operational since 2018, the project supplies electricity to the national grid, especially during peak summer months. Additionally, the New Bong Escape (84 MW), Pakistan’s first private-sector hydro IPP, has set a precedent for public-private partnerships in renewable energy.
Upcoming ventures, particularly under the China-Pakistan Economic Corridor (CPEC), include the Kohala Hydropower Project (1,124 MW) and the Azad Pattan Project (700 MW). These are expected to inject over 10 billion kWh annually into the grid once operational. Yet, bureaucratic red tape, land acquisition hurdles, and inconsistent environmental compliance have delayed their completion. Without better inter-agency coordination and stricter project monitoring, these megaprojects risk remaining on paper rather than transforming the energy landscape.
Challenges: Legal, Environmental, and Institutional Roadblocks
Despite the potential, hydropower expansion in AJK faces a range of critical challenges. Foremost among these is the lack of clear jurisdiction between the federal government and AJK authorities. While WAPDA and the Ministry of Energy are the main stakeholders in project funding and execution, AJK’s local government often demands greater say in resource control, environmental clearance, and revenue allocation. This has led to institutional gridlock, which hampers both investment and implementation.
Second, environmental degradation poses a serious concern. Unchecked construction has led to deforestation, habitat destruction, and water quality deterioration in various valleys. For instance, the diversion of river water in the Neelum Valley sparked local protests over falling water levels and agricultural loss. This highlights the lack of community engagement and absence of inclusive environmental impact assessments.
Moreover, foreign investment remains cautious due to concerns over regional security and policy inconsistency. Even projects backed by international financiers often suffer from delays in regulatory approvals, shifting power tariffs, and uncertain repatriation policies. To unlock serious investment, Pakistan needs a transparent, investor-friendly policy that balances national interest with ecological responsibility.
Socioeconomic and Strategic Benefits: The Case for Hydropower Expansion
Despite these challenges, the potential benefits of hydropower development in AJK are enormous. First and foremost, it offers a cost-effective, indigenous solution to Pakistan’s chronic energy shortages. Once operational, most hydropower plants generate electricity at significantly lower rates than thermal plants, reducing the burden on national finances and cutting down circular debt.
Second, hydropower development brings long-term employment, local infrastructure, and regional integration. Roads, schools, and health facilities often accompany such projects, especially in remote regions like Neelum and Kotli, fostering broader development. Furthermore, AJK’s energy surplus can help stabilize power supply in neighboring provinces, strengthening national cohesion.
Third, enhancing hydropower aligns with Pakistan’s international climate commitments. Under the Paris Agreement, Pakistan pledged to shift 60% of its energy generation to renewables by 2030. Expanding hydropower is vital to achieving this target without increasing dependency on intermittent sources like solar or wind.
Lastly, tapping AJK’s hydropower could have strategic significance. By showcasing development in a geopolitically sensitive region, Pakistan can bolster its stance on international forums while uplifting the socio-economic profile of an often-neglected area.
Policy Recommendations: Building a Sustainable Hydropower Future
To transform potential into performance, a multi-pronged approach is needed. First, the constitutional ambiguity regarding AJK’s jurisdiction must be clarified through legal frameworks that balance federal oversight with local autonomy. This would reduce inter-agency conflicts and speed up project approvals.
Second, the government must establish a Hydropower Coordination Authority comprising representatives from AJK, WAPDA, and private investors to oversee planning, budgeting, and compliance. A one-window operation would increase efficiency and investor confidence.
Third, every hydropower initiative must include mandatory environmental and social impact assessments, conducted transparently and involving local communities. Compensation schemes, resettlement plans, and benefit-sharing models must be standardized to win public trust.
Fourth, Pakistan should seek financial and technical partnerships with multilateral institutions such as the World Bank and Asian Development Bank, which can offer not just funding but global expertise in sustainable hydropower practices.
Lastly, a local human capital development plan, including vocational training centers, technical colleges, and employment quotas for AJK residents, can ensure that the economic benefits stay within the region, reducing resentment and fostering long-term cooperation.
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In critically analyzing the hydropower landscape in AJK, one sees both promise and paralysis. On the one hand, AJK is geographically blessed and technically suitable for clean energy expansion. On the other, legal ambiguity, ecological risks, and institutional inertia continue to hinder progress. However, with targeted reforms, inclusive policies, and strategic foreign investment, these obstacles are surmountable. The stakes are high, not just for energy security but for sustainable development and regional stability.
In conclusion, Azad Jammu and Kashmir holds the key to unlocking a greener, more resilient energy future for Pakistan. While the road to full hydropower potential is obstructed by legal, institutional, and ecological challenges, these can be overcome through coordinated policy action, local empowerment, and global cooperation. The transition to clean energy is not just a technical necessity, it is a national imperative. As climate risks intensify and energy demands grow, Pakistan must act decisively to harness the untapped power of its rivers, starting with the roaring waters of AJK.
