Rs272.5b earmarked for water, power projects in budget

Islamabad: The federal government has earmark a huge amount of Rs272.5 billion for new and ongoing projects in water and power sector in its upcoming budget 2018-19, but this allocation is a third (or34pc) less than last year allocation of Rs414 billion.

Prime Minister Shahid Khaqan Abbasi on Tuesday chaired the National Economic Council (NEC) meeting which approved the proposed Public Sector Development Program (PSDB) 2018-19. Having a cursory look at the PSDP, a copy of which is available with The News shows that for the upcoming fiscal, the government has focused more on water sector as compared to outgoing fiscal, as Pakistan is among the world’s most water stressed countries and this sector needs more attention. While, in outgoing fiscal, the government had allocated more resources to the power generation than water sector.

Interestingly, out of total Rs272 billion for water and power, Rs47.13 billion (or 17.3pc) is the government expecting as foreign assistance to finance the projects. According to the federal development budget or PSDP 2018-19, the government has allocated Rs72.304 billion for the power division, while in fiscal year 2017/18 this allocation was Rs377.54 billion. This indicates a reduction of Rs305 billion (80.8pc) over the outgoing fiscal [2017-18].

In water resource sector, a huge Rs200 billion have been earmarked for new and ongoing projects for financial year 2018/19 which is four-and-a-half time (or 444pc) more than outgoing financial year that had allocation of only Rs36.75 billion.

According to the proposed PSDP 2018-19, among ongoing power projects, the major chunk of Rs27.5 billion have been earmarked for the installation of two coal fired power projects in Jamshoro having capacity of 600MWs each. In this sector, among new schemes, two billion rupees have allocated for interconnection of isolated Makran Network at Basima via Nag G/station from Panjgoor G/system. Besides a billion rupees has been allocated for conversion of existing electric operated tube wells in Balochistan to solar system Phase-I (10,000 pumps). Another one billion is for evacuation of power from 2160MWs Dasu Hydropower Project stage-I.

In water sector, for Dasu hydropower project stage-I (2160MWs) in KP (Rs76.2 billion), Neelum-Jhelum hydro power project Rs32.51 billion, Tarbela fourth extension hydro power project (Rs13.89 billion), Mangla power station refurbishing & upgradation of generation unit 310MWs (Rs4.98 billion), Golan Goal hydropower project (Rs2.73 billion) and for Tarbela Fifth extension hydropower project (1410MWs) Rs2.283 billion have been allocated. For a new scheme of Muhmand Hydropower Project (Dam part) Rs2 billion have been earmarked.

Among ongoing projects, Diamer Bhasa Dam Project (Dam part-I) Rs23.68 billion have been allocated.

Raising Mangla Dam project Rs2.5 billion, extension of Right Bank Outfall Drain (RBOD-II) from Sehwan to sea, Dadu and Thatta (Rs6.5 billion), Kachi Canal project (phase-I) Dera Bugti, Naseerabad, Bolan and Jhal Magsi (Rs2 billion), Nai Ghaj Dam project Dasu, Sindh (Rs2billion), Naulong storage dam project, Jhal Magsi (Rs1.8 billion) and one billion rupees for Remodeling of Warsak canal system in Peshawar, Nowshera districts.