Water projects face funding shortfall

Water sector development in the next fiscal year is set to face a major funding squeeze, with the government proposing Rs179 billion in allocations against a required outlay of Rs969 billion.

According to sources, the Ministry of Water Resources had projected a total requirement of Rs969 billion for ongoing and planned development schemes. However, the government has proposed allocating only Rs179 billion, reflecting a substantial downward adjustment in available funding.

The upcoming development budget includes 41 ongoing projects, while only one new scheme has been incorporated. The sole new initiative pertains to a power generation facility linked to the Diamer-Bhasha Dam.

For this new project, Rs500 million has been proposed. In addition, Rs25 billion has been suggested for the Diamer-Bhasha Dam itself, while Rs7 billion is proposed for land acquisition related to the project.

The hydropower generation facility attached to Diamer-Bhasha is part of the broader investment framework being prioritised under the new budget.

Funding has also been proposed for several major ongoing hydropower and water infrastructure projects. These include Rs25 billion for the Dasu Hydropower Project, Rs39 billion for the Mohmand Dam, and Rs428 million for the rehabilitation of the Warsak Hydropower Station.

For irrigation and water supply schemes, Rs500 million has been proposed for the Kachhi Canal project, while Rs13 billion has been earmarked for the Greater Karachi Water Supply Scheme.

Additionally, Rs5.76 billion is proposed for the installation of a telemetry system on the Indus River, aimed at improving real-time water monitoring and management.

For expansion and enhancement of existing storage capacity, Rs4.59 billion has been allocated for the Mangla Dam Extension Project, while Rs3.40 billion has been suggested for the fifth extension phase of the Tarbela Hydropower Project.

According to official estimates, the Dasu Hydropower Project has a total cost exceeding Rs1,737 billion.

The Diamer-Bhasha Dam is estimated at Rs479 billion, while its power generation component is valued at Rs174 billion.

The Mohmand Dam project carries an initial estimated cost of Rs309 billion.