Govt proposes ₨91 billion for 49 power sector projects in PSDP 2026-27

The federal government has proposed an allocation of ₨91 billion for 49 power sector projects under the Public Sector Development Programme (PSDP) 2026-27, with the bulk of funding earmarked for ongoing transmission, distribution and hydropower evacuation schemes.

As per reports, ₨86.823 billion has been allocated for ongoing projects, comprising ₨75.431 billion in foreign-funded rupee cover and ₨11.392 billion in local financing.

The PSDP also includes three new projects worth ₨4.177 billion, taking the total proposed funding for the power sector to ₨91 billion. Following the inclusion of the new schemes, foreign-funded allocations stand at ₨79.607 billion, while local financing remains ₨11.392 billion.

Among the largest allocations is ₨10.823 billion for the evacuation of power from the 2,160MW Dasu Hydropower Project Stage-I, while ₨9.383 billion has been earmarked for the 765/500/220/132kV Islamabad West Grid Station, supported by the World Bank.

The government has also allocated ₨5.114 billion for the CASA-1000 interconnection project, involving a 599kV HVDC transmission system between Tajikistan and Pakistan.

Other major allocations include ₨3.9 billion for the evacuation of power from Mohmand Dam, ₨3.5 billion for the upgradation and expansion of NTDC's telecommunications and SCADA systems at the National Power Control Centre, and ₨3.189 billion for the Electricity Distribution Efficiency Improvement Project in MEPCO.

The PSDP proposes ₨3 billion for power evacuation infrastructure linked to the Suki Kinari Hydropower Project and ₨2.632 billion for the interconnection of the isolated Makran network through Basima and Panjgoor grid stations under QESCO.

Funding has also been earmarked for distribution strengthening projects in major power distribution companies. These include ₨2.910 billion for SEPCO, ₨2.595 billion for LESCO, ₨1.892 billion for MEPCO and ₨1.710 billion for HESCO.

Several grid station projects are also included in the programme, including ₨2.150 billion for the 220kV Mirpurkhas Grid Station, ₨1.742 billion for the 500/220kV Sialkot Substation, ₨1.450 billion for the 220kV Swabi Substation, ₨1.400 billion for the 220kV Quaid-e-Azam Apparel and Business Park Grid Station and ₨1.392 billion for the upgradation of the Vehari Substation from 220kV to 500kV.

Other allocations include ₨1.223 billion for the installation of Asset Performance Management Systems for transformers in LESCO, ₨1.150 billion each for the Jauharabad and Haripur grid station projects, ₨1.045 billion for the Dharki-Rahim Yar Khan-Bahawalpur transmission line and ₨985 million for the 220kV Arifwala Substation.

The government has also allocated ₨959 million for reinforcement of the 220kV transmission network in Islamabad and Burhan with financing support from JICA, ₨605 million for the Dhabeji Grid Station and ₨500 million for the installation of a pilot Battery Energy Storage System at the 220kV Jhampir Grid Station.