Rs103.086bn tagged for water, hydropower projects
ISLAMABAD: The federal government has allocated Rs103.086 billion for more than three dozen water and hydropower projects in the Public Sector Development Programme (PSDP) for FY2026-27, a significant cut from the Rs179 billion proposed by the Ministry of Planning, Development and Special Initiatives.
Of the total allocation, Rs51.445 billion has been earmarked as rupee cover, while Rs51.641 billion is allocated for local expenditure, reflecting a reduction of over 42 percent from the proposed outlay.
According to budget documents, Rs28.166 billion has been allocated for ongoing hydropower projects. Major allocations include Rs15 billion for the Dasu Hydropower Project (Stage-I), Rs3.4 billion for the 1,410 MW Tarbela 5th Extension Hydropower Project, and Rs2.284 billion for the second rehabilitation of the Warsak Hydroelectric Power Station.
Other allocations include Rs2.062 billion for rehabilitation of the Dargai Hydropower Station, Rs2.7 billion for the 34.5 MW Harpo Hydropower Project, and Rs1.484 billion for refurbishment and upgradation of Mangla Power Station, aimed at enhancing capacity from 1,000 MW to 1,310 MW. Additionally, Rs736 million has been earmarked for capacity enhancement of Chitral Hydropower Station from 1 MW to 5 MW, while Rs500 million has been allocated for the 54 MW Attabad Lake Hydropower Project.
In the water sector, key allocations include Rs22 billion for the Mohmand Dam Hydropower Project and Rs10 billion for the Diamer-Bhasha Dam Project (including the Tangir Hydropower Project). An additional Rs4 billion has been set aside for land acquisition and resettlement under the Diamer-Bhasha Dam Project.
The government has also allocated Rs5.054 billion for the installation of a telemetry system to enable real-time discharge monitoring at 27 key sites on the Indus Basin Irrigation System (IBIS), against a total project cost of Rs23.834 billion. Other notable allocations include Rs3 billion for flood management enhancement in the Indus Basin (JICA-assisted project), Rs3 billion for re-modelling of the Pat Feeder Canal System in Balochistan, and Rs1.5 billion under the Flood Protection Sector Project-III (FPSP-III). Funding has also been earmarked for several dam construction projects in Balochistan, including Rs1 billion each for Awaran Dam and Panjgur Dam, Rs1.6 billion for Garuk Storage Dam in District Kharan, Rs1.8 billion for the construction of 23 dams under Package-IV, and Rs593 million for 20 dams under Package-III.
Additionally, Rs1.374 billion has been allocated for the Kachhi Canal Project, while Rs910 million has been set aside for the raising of Mangla Dam (second revised PC-1). Despite these allocations, several ongoing water sector schemes will receive only nominal funding, amounting to a few million rupees, indicating tight fiscal space and prioritisation of key projects.