Rs103bn allocated for water, hydropower projects in FY27, 42% below proposed outlay

The federal government has allocated Rs103.086 billion for water and hydropower projects under the Public Sector Development Programme (PSDP) for FY2026-27, 42% lower than the Rs179 billion proposed by the Ministry of Planning, Development and Special Initiatives.

Budget documents show the allocation includes Rs51.445 billion as rupee cover and Rs51.641 billion for local expenditure, reflecting a reduction of more than 42% from the proposed funding level.

A total of Rs28.166 billion has been earmarked for ongoing hydropower projects. The largest allocation in the sector is Rs 15 billion for the Dasu Hydropower Project (Stage-I).

Other major allocations include Rs3.4 billion for the 1,410MW Tarbela 5th Extension Hydropower Project, Rs2.284 billion for the second rehabilitation of the Warsak Hydroelectric Power Station, Rs2.7 billion for the 34.5MW Harpo Hydropower Project and Rs2.062 billion for the rehabilitation of the Dargai Hydropower Station.

The government has also allocated Rs1.484 billion for the refurbishment and upgradation of Mangla Power Station to increase its capacity from 1,000MW to 1,310MW. Another Rs736 million has been earmarked for enhancing the capacity of Chitral Hydropower Station from 1MW to 5MW, while Rs500 million has been allocated for the 54MW Attabad Lake Hydropower Project.

In the water sector, the Mohmand Dam Hydropower Project has received Rs22 billion, making it the largest allocation among water projects.

The Diamer-Bhasha Dam Project, including the Tangir Hydropower Project, has been allocated Rs10 billion, while an additional Rs4 billion has been earmarked for land acquisition and resettlement related to the project.

The government has allocated Rs5.054 billion for installation of a telemetry system at 27 locations across the Indus Basin Irrigation System to enable real-time water discharge monitoring. The total cost of the project is estimated at Rs23.834 billion.

Other major allocations include Rs3 billion for the JICA-assisted flood management enhancement project in the Indus Basin, Rs3 billion for remodelling the Pat Feeder Canal System in Balochistan and Rs1.5 billion for the Flood Protection Sector Project-III.

Several dam projects in Balochistan have also received funding, including Rs1 billion each for Awaran Dam and Panjgur Dam, Rs1.6 billion for the Garuk Storage Dam in Kharan district, Rs1.8 billion for construction of 23 dams under Package-IV and Rs593 million for 20 dams under Package-III.

The Kachhi Canal Project has been allocated Rs1.374 billion, while Rs910 million has been set aside for the Mangla Dam Raising Project under its second revised PC-1.