ISLAMABAD:
The government is expected to widely miss the target for fund utilisation on water sector projects in the outgoing fiscal year 2024-25.
An amount of Rs142.6 billion had been allocated for water projects under the Public Sector Development Programme (PSDP) for FY25. The estimated expenditure by the end of May was Rs79.4 billion, revealed the Annual Plan 2025-26 while reviewing the performance in FY25.
In view of the strategic importance of the water sector, the FY25 development programme comprised 59 projects with total approved cost of Rs2,298.3 billion. Despite various challenges in the way of implementation, efforts were made to accelerate the water sector programme.
By the end of June 2025, out of the 59 projects, 23 schemes worth Rs163.5 billion are expected to be completed or closed. These include 10 projects in Balochistan, six in Sindh (canals, small dams and drainage), four in Khyber-Pakhtunkhwa (K-P), two in Punjab and one scheme of the Ministry of Water Resources.
Work is progressing on Mohmand Dam, having power generation capacity of 800 megawatts, water storage capacity of 0.676 million acre feet (MAF) and 18,233 acres of command area, and on Diamer Bhasha Dam (4,500 MW of electricity and 6.4 MAF of water storage).
The Annual Plan FY26 is aligned with the National Water Policy (2018), Sustainable Development Goals (SDGs) and Uraan Pakistan, where the government is targeting several megaprojects for enhancing the country’s water storage capacity.
Out of the total allocation of Rs133.424 billion for the Water Resources Division, the share of water sector development programme is Rs101.979 billion. Of this amount, Rs79.6 billion has been earmarked for the construction of large, medium and small dams including Rs68.5 billion for two megaprojects – Diamer Bhasha and Mohmand Dams.
Apart from that, work on Nai Gaj Dam costing Rs47 billion will be expedited with the allocation of Rs500 million. The project is aimed at developing the command area of about 28,800 acres in Dadu district of Sindh. Similarly, Rs300 million has been allocated to Naulong Multipurpose Dam for the development of 47,000 acres of command area in Jhal Magsi district of Balochistan.
To irrigate 286,100 acres of land in K-P, the Chashma Right Bank Canal (Lift-cum-Gravity Canal) project is being initiated with an allocation of Rs100 million for FY26. Total cost of the project is Rs189.606 billion.
To meet water demand in the metropolitan city of Karachi, the K-IV project will be given priority for timely completion. It has been given Rs3.209 billion for FY26.
To ensure the availability of water to Karachi through the Greater Bulk Water Supply (K-IV) project, the implementation of a scheme titled “Water Requirement for K-IV Project – Improvement of Kalri Baghar Feeder and Keenjhar Lake – Plain Cement Concrete Lining of Kalri Baghar Feeder Upper Phase-I” costing Rs39.943 billion (with 50% PSDP share of Rs19.971 billion) will be expedited. For this, Rs10 billion has been set aside.
An amount of Rs1.875 billion has been allocated for remodeling the pat feeder canal system in Balochistan district of Naseerabad. The Executive Committee of the National Economic Council (Ecnec) had approved the project on July 27, 2023 at a cost of Rs61.793 billion. The project is envisaged to provide due share of the province under the Water Apportionment Accord 1991.
The Kachhi Canal Project (remaining works), Dera Bugti district, Balochistan is nearing completion, after which the irrigated command area will be increased from 72,000 acres to 102,000 acres. An amount of Rs100 million has been allocated for the project.
The Kachhi Canal – Restoration of Flood Damages 2022 Project is aimed at restoring irrigation water supply to Dera Bugti, which had been affected due to the damage caused by 2022 floods. In FY26, Rs698.1 million has been allocated for the project.
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