PSDP 2025-26: Water projects worth Rs424bn proposed

ISLAMABAD: The Ministry of Water Resources has proposed 33 new water sector projects, with a total estimated cost of Rs 424.128 billion, for inclusion in the Public Sector Development Program (PSDP) for 2025-26. An allocation of Rs 42.432 billion has been sought for the fiscal year.

In a briefing to the Senate Standing Committee on Water Resources, chaired by Senator Shahadat Awan, Secretary of the Ministry of Water Resources, Syed Ali Murtaza, shared details of the PSDP.

Among the proposed projects, four are from Wapda, with a combined cost of Rs 33.0155 billion. Wapda has requested funding of Rs 1.584 billion for FY 2025-26. However, none of the proposed projects from Balochistan are included in the PSDP for 2025-26.

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For Sindh, three projects have been proposed with a total cost of Rs 257.783 billion, but the funding request for FY 2025-26 is Rs 15.805 billion. Meanwhile, Khyber Pakhtunkhwa is expected to benefit from 19 projects, costing a total of Rs 94.130 billion, with Rs 14.242 billion needed for FY 2025-26.

Additionally, seven development projects worth Rs 39.200 billion are related to Punjab, and the Ministry has sought Rs 10.800 billion in funding for the next fiscal year.

During the meeting, Secretary Murtaza clarified that none of the proposed projects have been included in the PSDP for 2025-26 as their PC-1s are still incomplete.

In 2024-25, the total allocation for 70 water and hydropower projects stood at Rs 343.812 billion, while their total cost amounted to Rs 4.488 trillion. The total throw-forward amount was Rs 2.795 trillion.

The issue of the Greater Karachi Bulk Water Supply Scheme (K-IV), Phase 1, was also discussed. It was reported that the project, which began in 2022 and is scheduled for completion in 2026, has a budget of Rs 126.404 billion.

However, the project is expected to face further delays due to the Karachi Water & Sewerage Board (KWSB), under the Government of Sindh, not yet awarding the tender for water distribution lines, which could take approximately three years.

Water Resources Ministry mentioned the following challenges: (i) large funding requirement;(ii) release of GoS cost share (Rs 8.503 billion);(iii) provision of power supply GoS;(iv) synchronization of augmentation work with K-IV project;(iv) clearance of Right of Way (RoW) due to court case and compensation issues; and (v) security of Chinese National working at K-IV project.

Secretary Water Resources assured the Committee that the Ministry would arrange required funds for the project but the delay is on part of provincial government.

Chairman, WAPDA, Lt. General Sajjad Ghani(retired) informed the Committee that the cost of project is expected to increase by 18 per cent to Rs 150 billion from Rs 126.404 billion.

He further stated that the project has to be aligned with water distribution work in Karachi as the water pumps which have intensive pressure will be tested prior to formal commencement of project.

Some of the Committee members expressed the hope that K-IV which began with eleven years of scheduled completion will be completed in 2027.

Wrapping up the meeting, Chairman Standing Committee, which belongs of Pakistan People’s Party (PPP) directed the officials of Ministry of Water Recourse to share update, if any, on Cholistan canal as Assembly of one province (Sindh) has passed a resolution against the project.

According to press release, upon the concern of Chairman Committee, it was revealed that the timely completion of these projects depends solely on the timely availability of funds.

Senator Shahadat Awan, the Chairman Committee, emphasized to complete the ongoing projects on priority basis before initiating the new ones to relieve the end user. Secretary ministry of water resources during also briefed about the status of small dams to be built in the province of Sindh.

The committee urged the authorities to accelerate project execution to counter growing water scarcity and improve its management. In a replay to the concern raised by Senator Dr. Mohammad Humayun Mohmand regarding the audit and monitoring of the ongoing projects, it was told that the Ministry has dedicated department for monitoring the projects on frequent basis.

Copyright Business Recorder, 2025