ISLAMABAD: The Ministry of Water Resources has proposed six new water and hydropower projects with a combined estimated cost of Rs469.027 billion for inclusion in the Public Sector Development Programme 2026-27.
The proposed schemes cover dam construction, canal development, hydropower rehabilitation, environmental safeguards and emergency communications. Their implementation will depend on government approvals, annual allocations and the release of development funds.
According to ministry documents available with Wealth Pakistan, the PSDP 2026-27 water projects are dominated by three major infrastructure schemes that account for more than 92% of the proposed portfolio.
Chiniot Dam Leads Proposed Investment
Chiniot Dam is the largest project on the ministry’s new-project list, with an estimated cost of Rs298.782 billion.
The scheme alone represents nearly two-thirds of the combined estimated cost of the six proposed initiatives.
The Kachhi Canal Project Phase-II is the second-largest proposal at Rs69.992 billion. The project covers the canal section from RD 1322+000 to RD 1512+000, according to the documents.
The ministry has also proposed the construction of the Burj-e-Aziz Khan Dam in Pishin Lora, Quetta, at an estimated cost of Rs63.523 billion.
The project forms part of planned water infrastructure development in Balochistan, where water supplies remain important for households, agriculture and economic activity.
Neelum Hydropower Tunnel Rehabilitation Proposed
Another proposed scheme involves rehabilitation and repair work on the Head Race Tunnel of the Neelum Hydropower Plant.
The project carries an estimated cost of Rs35.832 billion and is intended to address infrastructure requirements linked to the hydropower facility.
Together, Chiniot Dam, Kachhi Canal Phase-II and Burj-e-Aziz Khan Dam have an estimated cost of Rs432.297 billion.
Smaller Projects Focus on Capacity and Communications
The ministry has proposed a Rs454.56 million project to strengthen environmental and social management capacity for hydropower development under a World Bank grant facility.
The initiative is aimed at improving institutional arrangements for managing the environmental and social impacts of hydropower schemes.
A separate Rs443.61 million project seeks to upgrade the high-frequency radio network of the Water Resources Management Directorate of the Water and Power Development Authority.
The communications project is intended to improve coordination and operational links within the country’s water resources management system.
The documents identify all six schemes as new projects but do not specify their individual allocations for the 2026-27 financial year.
Their inclusion represents a proposed development pipeline, while the pace of implementation will depend on formal approval, funding allocations and subsequent releases.
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