Planning ministry unlikely to allocate fresh funds for new PSDP projects in FY2026-27

The Ministry of Planning, Development and Special Initiatives is unlikely to allocate fresh funds for new projects under the Public Sector Development Programme (PSDP) 2026–27 due to limited financial resources, officials told a parliamentary panel, according to a news report. 

These views were shared during a meeting of the Sub-Committee of the National Assembly Standing Committee on Power, chaired by Babar Nawaz Khan, while discussing a proposal to include Hazara Electricity Supply Company’s proposed grid station at Padhana in the upcoming PSDP.

Additional Secretary (Development) of the Power Division Humayun Khan informed the committee that the division had been directed not to recommend new projects for PSDP 2026–27. He said even ongoing projects may not receive allocations under current fiscal constraints.

He added that even if the Padhana grid station is proposed, the chances of its approval and funding remain low.

Highlighting resource limitations, the sub-committee convener said the Ministry of Water Resources had sought Rs 190 billion for Mohmand Dam in the next PSDP, but only Rs 20 billion had been committed. He noted that overall development allocations have reduced significantly.

The committee also reviewed the relocation of a 132 kV grid station from Padhana to Sarae Saleh in Haripur. The Power Division stated that the Sarae Saleh grid station was originally planned under PESCO’s 7th STG scheme in 2007–08, following load flow studies and system analysis.

However, General Manager (TS) of PPMC Tufail Ahmad, who visited the site on February 26, 2026, told the panel that the new grid station at Sarae Saleh would not adequately meet Padhana’s load requirements, particularly since a grid station already exists in Haripur.

He said a mechanism would need to be developed to address the expenditure already incurred at the relocated site.

One member of the sub-committee recommended action against officials involved in shifting the project location. The panel decided to place its recommendations before the main Standing Committee on Power Division.