Overview
- The government has proposed a Public Sector Development Programme of about Rs1,126 billion that is pending National Economic Council approval and may be adjusted before the federal budget is presented.
- Sixty‑five percent of the proposed PSDP, roughly Rs729.9 billion, is earmarked for infrastructure with transport, water and energy receiving the largest shares.
- The Power Division has been allocated about Rs91 billion for 49 projects focused on transmission, distribution upgrades and hydropower evacuation lines, including a pilot Battery Energy Storage System that was allocated more than Rs3 billion for FY2026‑27 against a total estimated cost of Rs112 billion.
- The water and hydropower envelope is set at roughly Rs179 billion for 44 schemes, creating a severe shortfall against the Ministry of Water Resources’ stated requirement of about Rs969 billion; key allocations include Rs25 billion for Dasu, Rs39 billion for Mohmand and sums for Diamer‑Bhasha land and works.
- Many major projects depend on foreign financing from lenders such as the ADB, World Bank and JICA which creates rupee‑cover needs and raises the risk that constrained domestic funds will delay or scale back works and slow benefits to users.