ISLAMABAD: The federal government has earmarked Rs91 billion for 49 ongoing and new power sector development projects under the Public Sector Development Programme (PSDP) 2026-27, according to official budget documents.
Out of the total allocation, Rs86.823 billion has been reserved for ongoing schemes, including Rs75.431 billion in foreign funding (rupee cover) and Rs11.392 billion in local financing. After the inclusion of three new schemes worth Rs4.177 billion, the overall foreign funding component will rise to Rs79.607 billion, while local financing remains unchanged.
The funding will support key transmission, distribution, and evacuation projects aimed at strengthening Pakistan’s power infrastructure and reducing system constraints.
Major ongoing projects include evacuation of power from the 2,160MW Dasu Hydropower Project (Stage-I), allocation of Rs10.823 billion, and evacuation schemes from Suki Kinari and other hydropower projects with Rs3 billion earmarked. Investment is also being directed toward installation of reactive power compensation systems (STATCOM) in NTDC’s Sindh network under ADB, World Bank, and IsDB support.
Other significant allocations include transmission expansion such as the 500kV Ghazi Barotha–Faisalabad double circuit line, upgradation of NTDC’s SCADA and telecommunication systems at NPCC, and multiple grid station development projects across Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan.
Key projects also include the 765/500/220/132kV Islamabad West Grid Station (Rs9.383 billion, World Bank-funded), evacuation of power from Mohmand Dam (Rs3.9 billion, ADB-funded), and various distribution strengthening projects under ADB and World Bank financing for MEPCO, LESCO, SEPCO, HESCO, and QESCO.
In addition, pilot initiatives such as battery energy storage systems at 220kV Jhampir grid station and regional interconnection projects, including CASA power linkage with Tajikistan, have also been included in the development portfolio.
Officials said the projects are aimed at improving transmission efficiency, reducing losses, and enhancing grid reliability to support Pakistan’s growing energy demand and renewable integration.
Story by Mushtaq Ghumman
