ISLAMABAD: The Ministry of Planning, Development and Special Initiatives is unlikely to allocate the required funds to various ministries and divisions under the Public Sector Development Programme (PSDP) 2026–27 due to limited financial resources.
This view emerged during a meeting of the Sub-Committee of the National Assembly Standing Committee on Power, convened to discuss matters related to the Hazara Electricity Supply Company (HAZECO). The meeting was presided over by Babar Nawaz Khan.
During the discussion on a proposal floated by HAZECO CEO Qazi Tahir for the inclusion of HAZECO’s grid station at Padhana in the PSDP development projects, Additional Secretary (Development) Humayun Khan informed the committee that the likelihood of funding in PSDP 2026–27 is very low, given that the Power Division has been directed not to recommend any new projects.
Humayun Khan remarked that even if the grid station project is proposed in the PSDP, it is unlikely to materialise.
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“This year, we have been instructed that no allocations will be made from the PSDP for new power sector projects, nor even for ongoing projects,” said the Additional Secretary of the Power Division.
Endorsing this viewpoint, Sub-Committee Convener Babar Nawaz Khan revealed that the Ministry of Water Resources had sought Rs 190 billion for the Mohmand Dam in PSDP 2026–27, but only Rs 20 billion has been committed.
“Our development allocation has shrunk drastically,” he added.
The Additional Secretary (Development), Power Division, further stated that he is the only additional secretary who has utilised the entire allocation for FY 2025–26.
The Sub-Committee also discussed the 132 kV grid station at Sarae Saleh, whose location is under review as it may not be able to meet the requirements of Padhana.
The panel is investigating the reasons behind relocating the 132 kV grid station from the load centre at Padhana to what is being described as a less feasible location, and to assess the technical, operational, and planning justification for this decision.
The Power Division informed the committee that the 132 kV grid station at Sarae Saleh, Haripur, was planned under PESCO’s 7th STG scheme in 2007–08.
The project was conceived after comprehensive load flow studies and detailed system analysis to ensure technical feasibility and system stability.
The establishment of the grid station was approved by the competent authority in accordance with prescribed procedures. Furthermore, the selected location was based on load centre requirements to cater to present demand as well as future load growth.
Tufail Ahmad, General Manager (TS) PPMC, who visited the controversial grid station site on February 26, 2026, to assess whether the current location would meet the area’s requirements, stated that since a grid station has already been established in Haripur, the new grid station would not meet the requirements of Padhana.
However, he noted that a mechanism must be devised to address the expenditure already incurred at the relocated site.
One of the Sub-Committee members, Syed Waseem Hussain, recommended that action be taken against officials involved in relocating the grid station from Padhana to Sarae Saleh.
The Sub-Committee decided that its recommendations would be presented before the main Standing Committee on Power Division.
Copyright Business Recorder, 2026
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