Report by Engineering Post
The Federal Government has allocated Rs 103.086 billion for water and hydropower projects for financial year 2026-27 in the Public Sector Development Programme (PSDP).
The allocation so made was as much as 42% lower than Rs 170 billion proposed earlier in this regard.
A total of Rs 38.166 billion has been provided for a number of ongoing hydropower projects, Out of these, the largest allocation of Rs 15 billion has been made for the Dasu Hydropower Project (Stage-1).
Other major allocations included Rs 3.4 billion for 1410 MW Tarbel 5th Extension Hydropower Project, Rs 2.284 billion for the second rehabilitation of the Warsak Hydroelectric Power Station, Rs 2,7 billion for the 34.5 MW Harpo Hydroelectric Power Station and Rs 2.062 billion for the rehabilitation of the Dargai hydropower Station.
In the water sector projects , the Mohmand Dam Hydropower Project will be getting Rs 22 billion which was the largest allocation among water projects. The Diamer-Bhasha Dam project including the Tangir Hydropower Project has been allocated Rs 10 billion , while an additional allocation of Rs 4 billion has been allocated for land acquisition and resettlement related to the project. The Kachhi Canal Project allocated Rs 1.374 billion while Rs 910 million has been provided for the Mangla Dam Raising Project under the second revised PC-1.
Several dam projects , flood management and remodelling of canals projects in Balochistan province have also been allocated varying sorts of allocation in the PSDP 2026-27.
