Federal Minister for Planning, Development and Special Initiatives Prof Ahsan Iqbal chaired a high-level review meeting on Monday to assess the progress of critical Public Sector Development Programme (PSDP) projects under the Power and Water Resources Divisions.
During the meeting, the Joint Chief Economist (Ops.) highlighted a massive financial throw-forward exceeding Rs1 trillion, contrasted against a total allocation of Rs122 billion earmarked in the PSDP 2025-26. The Minister took serious note of the low fund utilization, which currently stands at only 10 percent for Power Division projects and 6 percent for hydel power projects under the Water Resources Division.
Prof Iqbal stressed that these sectors are heavy consumers of the development budget and directed officials to expedite progress on critical projects.
To manage fiscal pressure, the Minister advised focusing on completing ongoing projects that are in advanced stages rather than initiating new expenditures on projects with zero progress, unless they are deemed highly essential.
He formally directed the Power Division to identify and prioritize the most critical projects and to propose the minimum funding required for the next three years, including a year-wise breakdown.
Among the key power sector projects reviewed were the 2x660MW coal-fired power plant at Jamshoro (Rs177bn), the Power Distribution Enhancement Investment Programme (Tranche-I) Advanced Metering Infrastructure project (Rs16.9bn), the Electricity Distribution Efficiency Improvement Projects in MEPCO (Rs10.2bn) and HESCO (Rs8.1bn), the 500kV Matiari–Moro–Rahim Yar Khan transmission line (Rs188.5bn), and another Electricity Distribution Efficiency Improvement project costing Rs11.7bn.
Major hydel and transmission-related projects also came under discussion, including the Dasu transmission lines, Ghazi-Barotha Hydropower Project, the upgradation and extension of NTDC’s telecommunications and SCADA system at the National Power Control Centre, and evacuation of power from the 2,160MW Dasu Hydropower Project (Stage-I).
The meeting concluded with a mandate for the Secretary Power Division to resolve existing fund utilization issues through closer coordination with the Secretaries of Finance and Planning. This disciplined approach aims to ensure that public investments are translated into operational assets and energy security without further cost escalations or delays.
