The federal government is set to launch a Rs1.424 trillion project for the power generation facilities of the Diamer-Bhasha Dam in the next fiscal year, according to official sources. The project will be included in the Public Sector Development Programme (PSDP) for FY2026-27, with an initial allocation of Rs500 million.
In addition to the ongoing work on the dam portion, the government has proposed a total allocation of Rs179 billion for the water resources ministry in the upcoming PSDP. This includes Rs42.67 billion for hydropower projects and Rs136.334 billion for water projects. Out of the total, Rs500 million has been recommended specifically for establishing power generation facilities at Diamer-Bhasha Dam, while the remaining funds will cover 36 ongoing projects.
Allocations for Diamer-Bhasha Dam Components
For the Diamer-Bhasha Dam Project, Rs32 billion has been proposed for two other components: Rs25 billion for the dam portion (worth Rs479.686 billion) and Rs7 billion for land acquisition and resettlement (worth Rs174.7 billion).
Other Hydropower Projects
Several other hydropower projects have also been allocated funds. The Dasu Hydro Power Project (Stage-1) will receive Rs25 billion, the 1410MW Tarbela 5th Extension Hydro Power Project will get Rs3.4 billion, and the Warsak Hydroelectric Power Station (2nd rehabilitation) will receive Rs4.284 billion. Additionally, Rs3 billion has been proposed for the Attabad Lake Hydropower Project (54MW), Rs2.7 billion for the 34.5MW Harpo Hydropower Project, Rs2.062 billion for the rehabilitation of Dargai Hydroelectric Power Station (PCI), and Rs1.485 billion for the refurbishment and upgradation of generation units at Mangla Power Station, which will increase its capacity from 1000MW to 1310MW.
Water Sector Allocations
In the water sector, Rs39 billion has been proposed for the Mohmand Dam Hydropower Project (800MW), and Rs13 billion for the Greater Karachi Bulk Water Supply Scheme (K-IV). For the installation of a telemetry system on the Indus Basin Irrigation System (IBIS), Rs5.755 billion has been allocated. Furthermore, Rs5 billion each has been proposed for the construction of Awaran Dam, Panjgur Dam in District Panjgur, and the remodeling of the Pat Feeder Canal System in Balochistan. Other allocations include Rs4.598 billion for raising the Mangla Dam Project, Rs3.3 billion for the construction of Gish Kaur Dam in District Kech, and Rs3 billion for the construction of 100 dams in Balochistan.
