Pakistan's Budget Allocation for Water Projects Sparks Concern Over Future Dam Developments
Analysis: BUDGET 2026-27: Can Pakistan afford to delay its dams?

Image: Dawn
Pakistan's proposed budget for 2026-27 allocates only Rs179 billion for critical water and hydropower projects, far below the Rs500 billion deemed necessary. Experts warn that inadequate funding could delay key projects like the Diamer-Bhasha and Dasu dams, exacerbating water scarcity and energy challenges amid climate change pressures.
- 01The proposed allocation of Rs179 billion for water and hydropower is significantly lower than the Rs500 billion needed.
- 02Major projects at risk include the Diamer-Bhasha Dam, expected to store 8.1 million acre-feet of water and generate 4,500MW of electricity.
- 03The Mohmand Dam is designed to provide 300 million gallons of water daily to Peshawar and generate 800MW of electricity.
- 04Delays in the Neelum-Jhelum Hydropower Project highlight the consequences of inadequate funding and accountability.
- 05The urgency for new water storage projects on the Chenab River is emphasized due to India's upstream water developments.
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Pakistan's proposed Public Sector Development Programme (PSDP) for 2026-27 allocates only Rs179 billion for vital water and hydropower projects, a fraction of the Rs500 billion experts say is necessary. This funding shortfall raises alarms regarding the timely completion of crucial projects, including the Diamer-Bhasha and Dasu dams, which are essential for enhancing the country's water and energy security. With ongoing challenges such as climate change and rising electricity costs, officials warn that insufficient investment could exacerbate water scarcity and hinder economic growth. Currently, the Water and Power Development Authority (Wapda) is overseeing several major projects, including the Mohmand Dam, which aims to generate 800MW of electricity and provide 300 million gallons of water daily to Peshawar. The urgency for new storage solutions on the Chenab River is particularly pressing due to fears of upstream developments by India. Additionally, the Neelum-Jhelum Hydropower Project serves as a cautionary tale, demonstrating how delays in funding and repairs can deprive the nation of essential energy resources. Experts advocate for prioritizing water and power sector investments to address these critical issues.
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Inadequate funding for water projects could lead to increased water scarcity and higher electricity costs for consumers.
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