ISLAMABAD: The federal government has proposed a total allocation of approximately Rs104 billion for the Power Division and Rs718.58 million for the Petroleum Division under the Public Sector Development Programme (PSDP) for the fiscal year 2025-26.
According to available copies of the official budget documents, a total of 47 ongoing projects have been identified under the Power Division, with an overall cost exceeding Rs 1 trillion. By June 30, 2025, an estimated Rs 523.49 billion will have been spent on these projects, with a throw-forward of Rs 607.47 billion.Â
For FY2025-26, the government has proposed a fresh allocation of Rs104 billion, of which Rs77.1 billion is rupee cover and Rs 26.9 billion is local funding.
One of the most significant components of the proposed PSDP is the allocation for the 2×660 MW coal-fired power plant in Jamshoro. The total cost of this ECNEC-approved project stands at Rs177.18 billion. By June 2025, over Rs 137 billion will have been spent, and the government plans to allocate an additional Rs 5.25 billion for FY2025-26 to support its completion.
A major chunk of the proposed funding has also been directed towards power evacuation projects. The project to evacuate electricity from the 2160 MW Dasu Hydropower Project is set to receive Rs15.97 billion, while Rs3.5 billion is proposed for power evacuation from the 884 MW Suki Kinari Hydropower Project. These critical investments aim to improve transmission infrastructure to integrate new generation capacities into the national grid.
The ambitious CASA-1000 project, aimed at importing electricity from Central Asia, is proposed to receive Rs3 billion during FY 2025-26. With a total cost of Rs 46.8 billion and over Rs 30.7 billion already utilized, this project reflects Pakistan’s strategic intent to diversify energy sources and regional power trade.
In terms of grid development, several major substation projects will receive fresh allocations. These include Rs5 billion for the Islamabad West Grid Station, Rs2.5 billion for transformation capacity enhancement of NTDC systems, Rs2 billion for upgradation of the Vehari grid station to 500 kV, and Rs2.5 billion for the 500/220 kV Sialkot substation. Additionally, Rs1.7 billion is proposed for the pilot Battery Energy Storage System (BESS) at Jhimpir.
The Power Division’s proposed PSDP also covers critical regional development projects such as electrification in Dera Bugti, grid station installations in Khuzdar, Washuk, and Makran, and replacement of outdated infrastructure in Peshawar, Bannu, and Khyber circles. Rs704.35 million has been allocated for Dera Bugti electrification, while Rs508 million is proposed for replacing LT bare conductors with ABC cables in Khyber Pakhtunkhwa.
On the petroleum side, a single yet significant project titled “Accelerated Geological Mapping and Mineral Exploration Using Modern Satellite Imaging-Based Technologies” has been proposed with a cost of Rs995 million. Approved by the Departmental Development Working Party (DDWP) in December 2024, the project seeks to advance exploration in unmapped areas across Pakistan using modern satellite imaging. Of the total cost, Rs276.42 million is expected to be spent by June 2025, with a remaining Rs718.58 million allocated for the upcoming fiscal year.
This mineral mapping initiative signals the government’s strategic move toward leveraging technology for resource development and enhancing the country’s potential in mineral exploration. The Petroleum Division’s proposal, though modest in budget compared to the Power Division, is vital in supporting long-term energy security and economic diversification.
Together, the proposed PSDP allocations for the Power and Petroleum Divisions underscore a forward-looking approach aimed at reinforcing energy infrastructure, integrating renewable and conventional power sources, and tapping into untapped mineral resources using modern exploration techniques. The allocations will be finalized and approved as part of the federal budget process for FY2025-26.
