Mohsin Siddiqui (Chief Reporter) 

The Economic Coordination Committee (ECC) of the Cabinet has sanctioned a compensation package amounting to $2.58 million for Chinese casualties at the Dasu Hydropower Project. This decision was made on a proposal presented by the Ministry of Water Resources during a meeting chaired by Finance Minister Muhammad Aurangzeb. a compensation amount of Rs2.5 million was approved for the local casualties.

The Dasu Hydropower Project, a flagship initiative of Pakistan constructed with World Bank assistance, is set to significantly enhance the country’s power generation capacity by 4,320 MW upon completion. Unfortunately, the project has been marred by two terrorist attacks—first on July 14, 2021, and subsequently on March 26, 2024. The latter incident resulted in the tragic deaths of six employees from China Gezhouba Group Corporation (CGGC), the main civil works contractor, including five Chinese nationals and one Pakistani driver.

In response to these incidents, the Water and Power Development Authority (WAPDA) requested the Ministry of Water Resources to form an Inter-Ministerial Committee (IMC) to determine appropriate compensation for the deceased employees. This request stemmed from a precedent set in July 2021, where compensation was provided following a similar terrorist attack that claimed the lives of 10 Chinese nationals and injured 26 others working with CGGC.

The attack in March 2024, the Project Steering Committee (PSC) for Dasu HPP convened its 20th meeting on May 9, 2024. Subsequently, an IMC was formed, led by the Secretary of the Ministry of Water Resources, with members from the Ministries of Foreign Affairs, Law and Justice, Finance, Interior, and the chairman of WAPDA. The committee met on May 14, 2024, and proposed four compensation options based on factors like GDP per capita and purchasing power parity.

The IMC unanimously recommended a compensation package totaling $2.58 million for the five deceased Chinese nationals, consistent with the principles established in the July 2021 incident. Additionally, they proposed a compensation amount of Rs2.5 million for the Pakistani national who lost his life.

These recommendations were endorsed during the PSC’s 21st meeting, also held on May 14, 2024. The Ministry of Water Resources then sought the ECC’s approval for the proposed compensation package, requesting the funds be provided as a technical supplementary grant. This grant was necessary as the Ministry lacked budgetary provisions for such purposes. The ECC approved the request, allowing the Ministry of Finance to arrange the funds, which will be transferred to Pakistan’s Embassy in Beijing for distribution to the families of the deceased through appropriate channels.

The ECC approved several other important financial measures. These included the release of Rs2,159.53 million to pay the gas bills of Pakistan Steel Mills (PSM), utilizing $8 million held by the National Bank of Pakistan for severance and operational expenses of the Roosevelt Hotel, and amendments to the policy for equity investment abroad to facilitate IT exports.

The ECC also approved technical supplementary grants for various ministries and projects:

1. Rs1,027.378 million for the Earthquake Reconstruction and Rehabilitation Authority to clear contractor liabilities.
2. Rs6.2 million to the Ministry of Interior for compensating the family of a deceased individual.
3. Rs54.490 million to the Ministry of Interior, reallocated from the Ministry of National Food Security and Research for an ICT Administration project in Islamabad.
4. Rs12,036.103 million to the Ministry of National Health Services, Regulations, and Coordination for the Federal Directorate of Immunization.
5. Rs2,217 million to the Power Division for development expenditures for the current fiscal year.
6. Rs184.509 million to the Pakistan Nuclear Regulatory Authority.
7. Rs70,484 million to the Ministry of Water Resources for the Dasu Hydropower Project.