Islamabad: The federal government has allocated PKR 103.086 billion for water and hydropower projects under the Public Sector Development Programme (PSDP) for fiscal year 2026-27, with major funding directed towards strategic dam construction, hydropower generation and water management initiatives across the country.
According to budget documents, the allocation comprises PKR 51.445 billion as rupee cover and PKR 51.641 billion for local expenditure. The funding level is more than 42% lower than the PKR 179 billion proposed by the Ministry of Planning, Development and Special Initiatives.
Among hydropower projects, PKR 28.166 billion has been earmarked for ongoing schemes. The largest allocation in the sector has been made for the Dasu Hydropower Project (Stage-I), which will receive PKR 15 billion during the upcoming fiscal year.
Other key allocations include PKR 3.4 billion for the 1,410MW Tarbela 5th Extension Hydropower Project, PKR 2.284 billion for the second rehabilitation of the Warsak Hydroelectric Power Station, PKR 2.7 billion for the 34.5MW Harpo Hydropower Project and PKR 2.062 billion for the rehabilitation of the Dargai Hydropower Station.
The government has also allocated PKR 1.484 billion for the refurbishment and upgradation of Mangla Power Station, aimed at increasing its generation capacity from 1,000MW to 1,310MW. In addition, PKR 736 million has been set aside to enhance the capacity of Chitral Hydropower Station from 1MW to 5MW, while PKR 500 million has been allocated for the 54MW Attabad Lake Hydropower Project.
In the water sector, the Mohmand Dam Hydropower Project has received the highest allocation of PKR 22 billion, making it the largest-funded water project under the PSDP for FY2026-27.
The Diamer-Bhasha Dam Project, including the Tangir Hydropower Project, has been allocated PKR 10 billion, while a further PKR 4 billion has been earmarked for land acquisition and resettlement activities associated with the project.
To improve water monitoring and management, the government has allocated PKR 5.054 billion for the installation of a telemetry system at 27 locations across the Indus Basin Irrigation System. The project is designed to enable real-time monitoring of water discharge and carries a total estimated cost of PKR 23.834 billion.
Other major allocations include PKR 3 billion for the JICA-assisted flood management enhancement project in the Indus Basin, PKR 3 billion for remodelling the Pat Feeder Canal System in Balochistan and PKR 1.5 billion for the Flood Protection Sector Project-III.
Several dam projects in Balochistan have also secured funding. These include PKR 1 billion each for the Awaran Dam and Panjgur Dam projects, PKR 1.6 billion for the Garuk Storage Dam in Kharan district, PKR 1.8 billion for the construction of 23 dams under Package-IV and PKR 593 million for 20 dams under Package-III.
Meanwhile, the Kachhi Canal Project has been allocated PKR 1.374 billion, while PKR 910 million has been earmarked for the Mangla Dam Raising Project under its second revised PC-1.
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