Pakistan proposes Rs91 billion for Power Sector Development in FY 2026-27

ISLAMABAD: The federal government has proposed an allocation of Rs91 billion for the Power Division under the Public Sector Development Programme (PSDP) for the upcoming fiscal year.

According to budget proposals, Rs86 billion has been earmarked for ongoing projects, while more than Rs4 billion has been recommended for new development schemes.

A key focus of the new budget is the development of a Battery Energy Storage System (BESS) for frequency regulation, with over Rs3 billion proposed for the project during the next fiscal year. The total estimated cost of the battery energy storage project stands at Rs112 billion.

Among other major allocations, Rs2.91 billion has been proposed for improving the power distribution network of the Sukkur Electric Power Company (SEPCO).

The government has also recommended Rs3.9 billion for a project aimed at transmitting electricity from the Mohmand Dam, while Rs10.83 billion has been proposed for Phase-I of the Dasu Hydropower Project transmission scheme.

For the CASA-1000 Interconnection Project, an allocation of Rs5.11 billion has been suggested. Additionally, Rs3 billion has been proposed for the transmission project associated with the Suki Kinari Hydropower Project.

The National Transmission and Despatch Company (NTDC) is expected to receive Rs3.5 billion for the upgrade of its telecommunications and SCADA systems.

Furthermore, Rs9.38 billion has been proposed for the Islamabad West Grid Station project as part of efforts to strengthen the national power transmission infrastructure.

The proposed allocations reflect the government’s continued focus on enhancing power generation, transmission, and distribution systems across the country.

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