ISLAMABAD: The federal government has earmarked Rs103.086 billion for more than three dozen water and hydropower projects under the Public Sector Development Programme (PSDP) for FY2026-27, significantly lower than the Rs179 billion initially proposed by the Ministry of Planning, Development and Special Initiatives.
The revised allocation reflects a cut of over 42 percent, with funds split almost evenly between Rs51.445 billion in rupee cover and Rs51.641 billion for local expenditure, according to budget documents.
Hydropower Projects Receive Major Share
Out of the total allocation, Rs28.166 billion has been set aside for ongoing hydropower schemes, including key strategic projects aimed at boosting national energy generation capacity.
Major allocations include:
- Rs15 billion for the Dasu Hydropower Project (Stage-I)
- Rs3.4 billion for the 1,410 MW Tarbela 5th Extension Project
- Rs2.284 billion for the second rehabilitation of Warsak Hydroelectric Power Station
- Rs2.062 billion for rehabilitation of Dargai Hydropower Station
- Rs2.7 billion for the 34.5 MW Harpo Hydropower Project
- Rs1.484 billion for upgrading Mangla Power Station, enhancing capacity from 1,000 MW to 1,310 MW
- Rs736 million for expansion of Chitral Hydropower Station from 1 MW to 5 MW
- Rs500 million for the 54 MW Attabad Lake Hydropower Project
Water Sector Investments
In the water sector, major allocations include:
- Rs22 billion for the Mohmand Dam Hydropower Project
- Rs10 billion for the Diamer-Bhasha Dam Project, including the Tangir Hydropower component
- Rs4 billion for land acquisition and resettlement for Diamer-Bhasha Dam
The government has also allocated Rs5.054 billion for installation of a telemetry system to enable real-time water discharge monitoring at 27 sites across the Indus Basin Irrigation System (IBIS), against a total project cost of Rs23.834 billion.
Flood Management and Canal Projects
Additional allocations include:
- Rs3 billion for flood management enhancement in the Indus Basin under a JICA-assisted programme
- Rs3 billion for remodelling of the Pat Feeder Canal system in Balochistan
- Rs1.5 billion for Flood Protection Sector Project-III (FPSP-III)
Several small-scale dam projects in Balochistan also received funding, including:
- Rs1 billion each for Awaran Dam and Panjgur Dam
- Rs1.6 billion for Garuk Storage Dam (Kharan)
- Rs1.8 billion for construction of 23 dams under Package-IV
- Rs593 million for 20 dams under Package-III
Other Allocations
- Rs1.374 billion for the Kachhi Canal Project
- Rs910 million for the raising of Mangla Dam (second revised PC-I)
Despite these allocations, several ongoing water sector projects have received only nominal funding, highlighting continued fiscal constraints and a focus on prioritising key national infrastructure schemes.
Story by Mushtaq Ghumman
