The Federal Constitutional Court was informed on Monday that the Gaj Dam project has seen cost overruns of around Rs. 36 billion, while physical progress remains below 50 percent despite years of construction.

A two-member bench headed by Chief Justice Amin-ud-Din Khan heard the case related to delays and rising costs of the project and adjourned further proceedings until June 11. The court also directed the Additional Attorney General to present arguments at the next hearing.

During the hearing, WAPDA’s counsel stated that the project was launched in 2011 with an estimated cost of Rs. 26 billion, but payments to the contractor have now reached approximately Rs. 62 billion after additional disbursements of Rs. 36 billion.

The counsel further argued that despite these payments, the project remains less than halfway complete. He also noted that the Sindh High Court had previously set deadlines for completion, which were not met.

In response, the contractor’s lawyer, Masood Khan, rejected the claims and said the Supreme Court had been informed in 2019 that around 50 percent of the work had already been completed. He added that judicial findings had also pointed to funding shortages as the main reason for delays.

He maintained that both federal and provincial authorities failed to release required funds on time, leading to stalled progress, and said work on the dam has remained suspended since 2024 due to financial constraints.

After hearing arguments from both sides, the court adjourned the case until June 11 to further examine responsibility for delays and escalating costs in the long-running project.