PSDP 2026-27: Rs179bn earmarked for 44 water schemes, hydropower projects

ISLAMABAD: The federal government has reportedly earmarked Rs 179 billion for nearly 44 (43 ongoing and one new) water sector development schemes and hydropower projects under Public Sector Development Program (PSDP) 2026-27 due to financial constraints.

Of total earmarked amount of 179 billion, required local funding will be about Rs 106.620 billion whereas rupee cover requirement of 72.379 billion.

According to the Ministry of Planning, Development and Special Initiatives, for ongoing hydel projects, Rs 42.666 billion have been earmarked, of which Rs 25 billion are proposed for Dasu Hydropower Project(stage-1), Rs 4.284 billion for Warsak Hydroelectric Power Station ( 2nd rehabilitation) Rs 3.4 billion will be for 1410 MW Tarbela 5th Extension Hydropower project, Rs 3.00 billion for Attabad Lake Hydropower project ( 54 MW), Rs 2.062 billion for rehabilitation of Dargai Hydroelectric power station(PC-1), Rs 2.7 billion 34.5 MW Harpo Hydropower Project, Rs 1.4845 billion for refurbishment and up-gradation of generation units of Mangla power station enhancing the capacity from 1000 MW to 1310 MW and Rs 736 million for capacity enhancement of Chitral Hydropower station from 1 MW to 5 MW.

READ MORE: Projects aimed at increasing water storage capacity to be given priority: PM reviews PSDP

The proposed allocation for some of the ongoing water sector schemes/projects are as follows: (i) Diamer Basha Dam Project (inclusion of Tangir Hydropower project) Rs 25 billion); (ii) Diamer Basha Dam Project– acquisition of land and resettlement ( 2nd revised ( revised PC-1 is under approval process) Rs 7.00 billion;(iii) Mohamand Dam Hydropower project – Rs39 billion; (iv) raising of Mangla Dam project (2nd revised PC-1) Rs 4.598 billion; (v) revised PC-1 for installation of telemetry system for real time discharge monitoring at 27 key sites on Indus Basin Irrigation System(IBIS)- Rs 5.755 billion (total cost Rs 23.834 billion, Provincial share Rs 500 million of IRSA from its own resources; (vi) Kachhi Canal Project- Rs 4.874 billion; (vii) construction of 100 dams in Balochistan –package–III (20 dams) revised –Rs 1.093 billion; (viii) construction of Awaran Dam (revised) –Rs 5.00 billion (total 23.579 billion - federal share Rs 17.754 billion - provincial share Rs 5.826 billion); (ix) construction of Panjgur dam, district Panjgur (revised) – Rs 5.00 billion (total cost Rs 22.341 billion - federal share Rs 16.506 billion- provincial share Rs 5.835 billion); (x) construction of 100 dams in Balochistan-Package-iv (23 dams) Rs 3.00 billion; (xi) remodelling of Pat Feeder Canal System in Balochistan, District Naseerabad – Rs 5.00 billion (total cost Rs 61.793 billion - federal share Rs 46.996 billion - provincial share 14.797 billion; (x) Garuk Storage Dam District Kharan (2nd revised PC-1) Rs 1.459 billion( total cost Rs 27.753 billion- Federal share Rs 15.650 billion- provincial share Rs 12.103 billion; (xi) Umbrella PC-1 of the Flood Protection sector project–III (FPSP-III) updated Rs 2 billion; and (xii) the project for Flood Management Enhancement in the Indus Basin-JICA grant-Rs 3.00 billion. Other ongoing water schemes will get funding of just millions of rupees. Only one scheme – Diamer Basha Dam Project - power generation facilities (4500 MW) – Rs 500 million.

This shows budget of Rs 135.8335 billion has been proposed for ongoing water sector projects/schemes under PSDP 2026-27.

Copyright Business Recorder, 2026