ISLAMABAD: The government is set to fall significantly short of its spending target for water sector development projects in the outgoing fiscal year 2024-25, with only Rs79.4 billion spent by May against an allocated Rs142.6 billion under the Public Sector Development Programme (PSDP).
According to the Annual Plan 2025-26, the FY25 water development programme included 59 projects with a cumulative approved cost of Rs2,298.3 billion. Despite persistent implementation hurdles, efforts were made to accelerate progress. By June 2025, 23 schemes worth Rs163.5 billion are expected to be completed or closed. These include 10 projects in Balochistan, six in Sindh, four in Khyber-Pakhtunkhwa, two in Punjab, and one under the Ministry of Water Resources.
Key projects such as the Mohmand Dam (800 MW, 0.676 MAF storage) and the Diamer Bhasha Dam (4,500 MW, 6.4 MAF storage) are under construction. The Annual Plan FY26 aligns with the National Water Policy 2018, SDGs, and the Uraan Pakistan strategy.
For FY26, the Water Resources Division has been allocated Rs133.4 billion, with Rs101.9 billion earmarked specifically for water sector development. Of this, Rs68.5 billion has been dedicated to the Mohmand and Diamer Bhasha megaprojects.
Other key allocations include:
- Rs500 million for Nai Gaj Dam (28,800 acres command area, Dadu, Sindh)
- Rs300 million for Naulong Dam (47,000 acres, Jhal Magsi, Balochistan)
- Rs100 million for the Chashma Right Bank Canal in K-P (286,100 acres)
- Rs3.209 billion for Karachi’s K-IV water supply project
- Rs10 billion for upgrading the Kalri Baghar Feeder and Keenjhar Lake under the K-IV initiative
- Rs1.875 billion for remodeling Pat Feeder Canal (Naseerabad, Balochistan)
- Rs100 million for Kachhi Canal (Dera Bugti) completion
- Rs698.1 million for restoration of flood-damaged Kachhi Canal (2022)
The sharp underutilisation of funds highlights ongoing institutional and logistical challenges, even as the government emphasizes water storage expansion as a national priority.
Story by Zafar Bhutta
