Rs91bn set aside for 49 power projects under PSDP

ISLAMABAD: The federal government has earmarked Rs 91 billion for 49 power sector projects under the Public Sector Development Programme (PSDP) 2026-27.

According to budget documents, of total proposed allocation of Rs 91 billion, Rs 86.823 billion will be for the ongoing development projects/schemes which includes Rs 75.431 billion foreign funding (rupee cover) whereas Rs 11.392 billion is local financing.

However, after inclusion of three new schemes amounting to Rs 4.177 billion, total foreign funding will be Rs 79.607 billion whereas local funding will stand at Rs 11.392 billion.

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

Some of the key power sector ongoing development projects/schemes for funding has been ensured are as follows: (i) evacuation of power from 2160 MW DASU HPP stage -1 Rs 10.823 billion;(ii) evacuation of power from Suki Kinari, Kohala, Mahal HPPs (revised name evacuation of power from Suki Kinari) Rs 3.00 billion installation of reactive power compensation devices (STATCOM) in NTDC network in Sindh - ADB, WB and ISDB;(iii) 500 Kv double transmission line from Ghazi Barotha to Faisalabad ;(iv) supply, installation, testing and commissioning of Assets Performance Management Systems (APMS) for 100 kVA & 200 KVA general duty distribution transformers in SEPCO to be funded by the ADB( agreement yet to be signed after approval of PC-1) Rs 122 million ;(v) APMS for 100 kVA & 200 KVA general duty distribution transformers in LESCO under ADB Power Distribution Strengthening Project -II Rs 1.223 billion;(vi) upgradation/ extension of NTDC’s telecommunication and SCADA System at NPCC to be funded by ADB –Rs 3.5 billion ;(vii) 220 kV Dharki-Rahim Yar Khan-Bahawalpur D/C transmission line- Rs 1.045 billion (viii) 220kV Arifwala Substation to be funded by AFD- Rs 985 million; (ix) 500/220 kV Sialkot substation9AFD) - Rs 1.742 billion; (x) upgradation of existing 220 kV Vehari Sub Station to 500 kV Vehari Substation –Rs 1.392 billion; (xi) extension and augmentation of existing 500 kV and 220 kV grid station (new)( now addition and augmentation of 500 kV and 220 kV transformers at the existing grid station for removal of NTDC system constraints across the country, to be funded by ADB- Rs 2.439 billion; (xii) 765/500/220/132 kV Islamabad West Grid Station, Islamabad, Rs 9.383 billion to be funded by the World Bank; (xiii) evacuation of power from Mohmand Dam to be funded by the ADB - Rs 3.9 billion; (xiv) Electricity Distribution Efficiency Improvement Project (EDEIP) in MEPCO under World Bank- Rs 3.189 billion; (xv) Power Distribution Strengthening Project (ADB) in MEPCO - Rs 1.892 billion; (xvi) Power Distribution Strengthening Project - covering the jurisdiction of LESCO( District Lahore, Kasur, Sheikhupura, Nankana sahib and Okara to be funded by the Asian Development Bank - Rs 2.595 billion; (xvii) power distribution strengthening project (SEPCO). The project covers 10 districts of Sindh province, ie, Sukkur, Jacobabad, Shikarpur, Larkana, Ghotki, Kamber, Kandhkot, Dadu, Naushero Feroz and Khairpur to be funded by ADB- Rs 2.910 billion; (xviii) EDEIP, HESCO Rs 1.710 billion; (xix) interconnection of isolated Markran network at Basima via Nag Grid Station from Panjgoor Grid Station (QESCO) Rs 2.632 billion; (xx) installation of pilot Battery Energy Storage System (BESS) at 220 kV Jhampir G/ Station to be funded by the ADB- Rs 500 million ;(xxi) Dhabeji Grid Station- Rs 605 million; (xxii) 220 kV Haripur Substation- Rs 1.10 billion; (xxiii) 220 kV Swabi Substation –Rs 1.450 billion; (xxiv) 220 kV Quaid-e-Azam Apparel and Business Park (QABP) Grid Station for provision of electricity to PIEDMC SEZ - Rs 1.4 billion; (xxv) 599 kV HVDC transmission system between Tajikistan and Pakistan for CASA interconnection – Rs 5.114 billion;(xxvi) 220 kV Jauharabad Grid Station alongwith allied transmission lines - Rs 1.150 billion; (xxvii) 220 kV Mirpurkhas Grid Station along with transmission lines to be funded by ADB –Rs 2.150 billion; and (xxviii) 220 kV transmission system network reinforcement in Islamabad and Burhan to be financed by JICA- Rs 959 million.

Copyright Business Recorder, 2026