Analysis: BUDGET 2026-27: Can Pakistan afford to delay its dams?
• Water, hydropower projects may get only Rs179bn in PSDP • Officials say at least Rs500bn is needed; warn low allocation may slow major dam, power projects • Ex-Wapda official fears Diamer-Bhasha, Dasu may miss timelines • Wapda says eight mega projects are under construction, expected to double hydel generation by 2030 THE country’s persistent failure to invest adequately in water storage and hydropower infrastructure has once again come into focus, as the government is exp
Pakistan's proposed budget for water and hydropower projects in the Public Sector Development Programme (PSDP) 2026-27 may fall significantly short of the estimated Rs500 billion needed. The planned allocation of Rs179 billion has raised concerns that crucial ongoing projects, including major dams and flood mitigation schemes, could face delays. Officials and experts warn that this underfunding risks slowing down vital infrastructure development at a time of increasing water scarcity and high energy costs.
Adequate investment in water and hydropower infrastructure is crucial for Pakistan's water security, food production, climate change adaptation, and the provision of affordable, reliable electricity essential for economic growth.
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