Spending on water projects to fall short of target
Listen to article
The government is expected to widely miss the target for fund utilisation on water sector projects in the outgoing fiscal year 2024-25.
An amount of Rs142.6 billion had been allocated for water projects under the Public Sector Development Programme (PSDP) for FY25. The estimated expenditure by the end of May was Rs79.4 billion, revealed the Annual Plan 2025-26 while reviewing the performance in FY25.
In view of the strategic importance of the water sector, the FY25 development programme comprised 59 projects with total approved cost of Rs2,298.3 billion. Despite various challenges in the way of implementation, efforts were made to accelerate the water sector programme.
By the end of June 2025, out of the 59 projects, 23 schemes worth Rs163.5 billion are expected to be completed or closed. These include 10 projects in Balochistan, six in Sindh (canals, small dams and drainage), four in Khyber-Pakhtunkhwa (K-P), two in Punjab and one scheme of the Ministry of Water Resources.
Work is progressing on Mohmand Dam, having power generation capacity of 800 megawatts, water storage capacity of 0.676 million acre feet (MAF) and 18,233 acres of command area, and on Diamer Bhasha Dam (4,500 MW of electricity and 6.4 MAF of water storage).
The Annual Plan FY26 is aligned with the National Water Policy (2018), Sustainable Development Goals (SDGs) and Uraan Pakistan, where the government is targeting several megaprojects for enhancing the country's water storage capacity.
Out of the total allocation of Rs133.424 billion for the Water Resources Division, the share of water sector development programme is Rs101.979 billion. Of this amount, Rs79.6 billion has been earmarked for the construction of large, medium and small dams including Rs68.5 billion for two megaprojects – Diamer Bhasha and Mohmand Dams.
Apart from that, work on Nai Gaj Dam costing Rs47 billion will be expedited with the allocation of Rs500 million. The project is aimed at developing the command area of about 28,800 acres in Dadu district of Sindh. Similarly, Rs300 million has been allocated to Naulong Multipurpose Dam for the development of 47,000 acres of command area in Jhal Magsi district of Balochistan.
To irrigate 286,100 acres of land in K-P, the Chashma Right Bank Canal (Lift-cum-Gravity Canal) project is being initiated with an allocation of Rs100 million for FY26. Total cost of the project is Rs189.606 billion.
To meet water demand in the metropolitan city of Karachi, the K-IV project will be given priority for timely completion. It has been given Rs3.209 billion for FY26.
To ensure the availability of water to Karachi through the Greater Bulk Water Supply (K-IV) project, the implementation of a scheme titled "Water Requirement for K-IV Project – Improvement of Kalri Baghar Feeder and Keenjhar Lake – Plain Cement Concrete Lining of Kalri Baghar Feeder Upper Phase-I" costing Rs39.943 billion (with 50% PSDP share of Rs19.971 billion) will be expedited. For this, Rs10 billion has been set aside.
An amount of Rs1.875 billion has been allocated for remodeling the pat feeder canal system in Balochistan district of Naseerabad. The Executive Committee of the National Economic Council (Ecnec) had approved the project on July 27, 2023 at a cost of Rs61.793 billion. The project is envisaged to provide due share of the province under the Water Apportionment Accord 1991.
The Kachhi Canal Project (remaining works), Dera Bugti district, Balochistan is nearing completion, after which the irrigated command area will be increased from 72,000 acres to 102,000 acres. An amount of Rs100 million has been allocated for the project.
The Kachhi Canal – Restoration of Flood Damages 2022 Project is aimed at restoring irrigation water supply to Dera Bugti, which had been affected due to the damage caused by 2022 floods. In FY26, Rs698.1 million has been allocated for the project.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
a day ago
- Express Tribune
PTI chief's order stalls K-P budget
A directive from the Pakistan Tehreek-e-Insaf (PTI) Patron-in-Chief not to approve the Khyber Pakhtunkhwa (KP) budget without prior consultation with him has become a serious constitutional and administrative challenge for the provincial government. The government now finds itself caught between the leader's directive and constitutional obligations. According to the schedule, the K-P budget must be approved by June 24. Failure to do so before the end of the current fiscal year could empower the Governor to ask the Chief Minister to seek a vote of confidence, or even advise the President to impose economic emergency under Article 234 of the Constitution. The government has held multiple sessions with constitutional experts to resolve the impasse, but no breakthrough has been achieved so far. The PTI Patron-in-Chief had expressed a desire to meet with K-P Chief Minister Ali Amin Gandapur, Finance Advisor Muzzammil Aslam, and other economic experts regarding the budget. However, prison authorities allowed him to meet only the chief minister. In response, the PTI leader issued strict instructions: no budget approval without full consultation with economic advisors. Although the budget has been presented in the K-P Assembly, the party leadership has yet to be consulted. Chief Minister Gandapur has reiterated his stance that the budget will not be passed without explicit approval from the party chief. As debate on the budget continues, approval of departmental demands for grants is scheduled to begin today. According to parliamentary procedures, approving these demands effectively means passing the budget. Meanwhile, the government has again consulted legal experts. Constitutional experts warn that if the budget is not passed by June 30, it would be considered a failure of the government. Under such circumstances, the Governor can invoke Article 234 and advise the President to impose economic emergency, citing both financial and constitutional crises. Additionally, the Governor may direct the Chief Minister to seek a vote of confidence, and the President could refer the matter to the National Assembly. Law Minister Aftab Alam told The Express Tribune that the government is trying its best to ensure timely budget approval in accordance with the schedule. However, he emphasized that the PTI leader's directive stands: no approval without prior consultation. He warned that if a crisis emerges, the federal government would bear responsibility for denying access to the party leadership. The Provincial Assembly Secretariat, when contacted, stated that it is following the approved schedule, and it is the government's responsibility to ensure the budget's timely passage.
Business Recorder
2 days ago
- Business Recorder
Karandaaz Financial Inclusion Survey released
KARACHI: Karandaaz Pakistan has released the 2024 edition of the Karandaaz Financial Inclusion Survey (K-FIS), marking a decade of demand-side financial data and providing a powerful roadmap for advancing inclusive finance in Pakistan. K-FIS continues to be the only nationally representative demand side survey that captures people's real financial experiences across gender, geography, and income segments. The 2024 findings reveal a significant leap in financial inclusion, which has increased fourfold, from just 8 percent in 2013 to 35 percent in 2024. This growth is primarily driven by the rise of mobile money, now used by 30 percent of adults, up from less than 1 percent ten years ago. While this progress is encouraging, the report highlights persistent gaps in usage, trust, and equity. Only 14 percent of women report owning a full-service financial account, compared to 56 percent of men. Women's access to mobile phones also remains limited, with only 46 percent ownership compared to 82 percent for men, limiting their ability to avail digital financial services. Geographic disparities persist as well. Punjab (40 percent), Islamabad (38 percent), and Gilgit-Baltistan (33 percent) have made significant strides in inclusion, whereas Balochistan (23 percent) and Azad Jammu & Kashmir (25 percent) continue to lag behind. The adoption of the government-backed RAAST payment system shows promise, with wallet registrations more than doubling from 17 percent to 41 percent in the last two years. Users cited speed (77 percent) and affordability (43 percent) as the main advantages. Addressing the webinar for the launchof report, Waqas ul Hasan, CEO Karandaaz, has said as the K-FIS results reveal, there is a persistent and troubling gender divide. 'Today, 56 percent of adult men in Pakistan have a registered financial account, compared to just 14 percent of women,' he added. He said that Karandaaz envisions a Pakistan where these divides no longer exist and where every individual, regardless of gender, has the tools to participate fully in the formal economy. 'We believe that inclusion is not a one-time achievement, but a continuous journey, and that data, like the one we share today, must guide us,' he added. Despite this progress, formal financial services remain underutilised. A striking 85 percent of adults continue to rely on informal sources — mainly family and friends—for credit. Meanwhile, trust remains a critical barrier: only 9 percent of excluded adults say they trust banks, and just 8 percent trust mobile money providers. Only 36 percent feel comfortable using any financial service. During the keynote address, Syed Samar Hasnain, Executive Director Digital Financial Services, State Bank of Pakistan (SBP), stressed on the significance of demand-side surveys, commenting, datasets are collected regularly on the supply side, from the perspective of financial institutions. However, data collection efforts on the demand side, from the perspective of households and individuals, are limited. Nonetheless, individual level surveys are essential to get invaluable insights regarding financial behavior, he added. The webinar for the launch also featured two important panel discussions. The first one, titled 'From Growth to Gaps – Who's Included, Who's Left Behind: The Next Horizon in Financial Inclusion?,' was moderated by Stephen Rasmussen, former CEO of CGAP, with an expert panel consisting of Jahanzeb Khan, CEO, easypaisa Digital Bank; Mehr Shah, Head of Research, Raqami Islamic Digital Bank; and Umair Ahmad, Senior Joint Director, Agricultural Credit & Financial Inclusion Department, State Bank of Pakistan. The second panel, titled 'Closing the Gender Gap in Financial Inclusion and Building Financial Resilience within Communities,' was moderated by Ali Akbar Ghanghro, Senior Manager, Research & Insights, Karandaaz Pakistan. The panel featured Patrick Reily, Founding Partner, Uplinq Technologies; Hussam Razi, Associate Director, Innovations for Poverty Action; Halima Iqbal, CEO, Oraan; and Nageen Akhtar, Head of Innovation, Bank Alfalah. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
GST on imported solar panels reduced to 10pc
ISLAMABAD: Deputy Prime Minister and Foreign Minister Ishaq Dar said that the digital sales tax on services would remain within the jurisdiction of provinces and proposed general sales tax (GST)on solar panels has been reduced from 18 per cent to 10 per cent. Speaking on the floor of the National Assembly on Wednesday, Dar said that after detailed discussions with coalition partners and relevant stakeholders, consensus had been reached on resolving several contentious budgetary issues. He said that as part of the revisions, it was agreed that the imposition of digital sales tax on services falls under the constitutional domain of provincial governments. 'The concerns regarding digital taxation were valid. We held in-depth consultations with all stakeholders, including the Federal Board of Revenue (FBR), and it has been decided that the matter will be clearly addressed in the finance minister's budget winding-up speech.' NA panel rejects 18pc GST on solar panels He said that the earlier proposal of imposing 18 per cent general sales tax (GST) on solar panels had sparked considerable debate. Upon review, he said that it was revealed that 54 per cent of components used in solarisation were already taxed under the existing regime, and the 18 per cent tax applied only to the remaining 46 per cent. However, after mutual consultations, we have now proposed reducing the solar GST from 18 per cent to 10 per cent, he announced. The deputy prime minister said that tax proposals are essential for revenue generation, and any relief in one area necessitates compensation elsewhere. He pointed out that when the cabinet found the initial proposal of a six per cent salary increase for government employees insufficient and raised it to 10 per cent, corresponding budgetary adjustments also had to be made. 'We must move forward collectively. Our approach is rooted in consensus and cooperation.' Highlighting another key issue, he said it was decided to maintain funding for proposed universities in Sindh under the Public Sector Development Programme (PSDP) at Rs4.7 billion through the Higher Education Commission (HEC). He said that fund would be released for the universities. The deputy prime minister acknowledged valid concerns raised by the members of the house about the closure of the Public Works Department (PWD) and confirmed that the Pakistan Infrastructure Development Company Limited (PIDCL) would now oversee all federal development projects across provinces. He said that the PIDCL was initially formed for Sindh, but its mandate has now been expanded to oversee development projects across all provinces. Dar concluded by reaffirming the government's willingness to address genuine concerns through mutual dialogue and constructive engagement. Pakistan People's Party (PPP) senior leader Syed Naveed Qamar thanked Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar for accommodating the proposals of the party and Sindh government. 'We had wanted to reduce all 18 per cent tax on solar panels but it cannot do so. After approval of budget, a committee will be formed to discuss further reduce tax on solar panels.' He also acknowledged the government's decision to expand the mandate of the Pakistan Infrastructure Development Company Limited (PIDCL) to all provinces, instead of limiting it to Sindh, effectively addressing another PPP concern. Aijaz Hussain Jakhrani highlighted the steps being taken by Sindh government for development of Karachi including its health infrastructure. He said that we also want to eliminate arrest power of Federal Board of Revenue (FBR). He also said that the Sukkur-Hyderabad Motorway is a vital need of the people and urged the authorities to pay attention to the project. Earlier, legislators from both opposition and treasury benches called for the establishment of Special Agriculture Zones, IT Facilitation Centres nationwide, increased farmer support, and funding for churches and temples to promote economic growth and social inclusion. Resuming general budget discussions on the fifth day in the National Assembly, Dr Zulfikar Ali Bhatti of PML-N stressed the need to develop rural areas and strengthen the agricultural sector. He proposed the establishment of Special Agriculture Zones nationwide, equipped with all necessary facilities to enhance agricultural productivity. He also advocated for providing incentives to farmers. Additionally, he called for the creation of IT facilitation centres in rural regions and the implementation of skill development programs for youth, particularly in these areas, to promote self-sufficiency. Fatehullah Khan of PPP strongly denounced Israel's aggression against Iran. Drawing attention to the suffering of flood victims in his constituency, he urged the government to provide compensation to those affected. Awais Haider Jhakar of the Sunni Ittehad Council (SIC) highlighted the challenges faced by farmers and criticised government policies that have contributed to a decline in agricultural production. Sanjay Parwani of the MQM criticised the government for failing to allocate what he described as even a single penny for the country's churches and temples in the 2025-26 federal budget. Abdul Ghafoor Haideri of JUI-F urged the Deputy Speaker Ghulam Mustafa Shah to issue a ruling demanding strict punishment for the miscreants involved in the attempted abduction of Maulana Fazlur Rehman's son and called for the immediate arrest of those responsible. PPP's Zulfiqar Ali Behan called for the imposition of an agricultural emergency in the country and the removal of taxes on fertilisers to boost agricultural production. Chaudhry Mubeen Arif Jatt of SIC called for the immediate withdrawal of the proposed 18 percent GST on solar panels. He also highlighted the hardships faced by farmers, noting that their produce is being sold at prices lower than their production costs. Chaudhry Riazul Haq of PML-N demanded a review of the Federal Board of Revenue (FBR)'s excessive powers and emphasised the need to lower fertiliser prices. Sohail Sultan said that it is the government's duty to provide relief to the people. He urged the government to increase the monthly income of labourers and suggested including youth programmes in the current budget. Parliamentary Secretary Sajid Mehdi lauded the armed forces and their chiefs for performing outstanding performance against the Indian aggression against Pakistan. He said that Pakistan is far behind in modern agriculture, lamenting that we cannot even produce the seed of any crop. He linked the development of the country with the agriculture sector, adding, we cannot progress unless we develop agriculture sector. He said that a small relief was given to farmers in the shape of solar power but the government imposed tax on this facility which is injustice. He demanded that the pesticides and fertiliser be tax-free. Mahtab Akbar Rashdi, Muhammad Moeen Wattoo, Rai Hassan Nawaz Khan, Chaudhry Anwarul Haq, Nasir Iqbal, Musa Gilani, Ali Jadoon, and others participated in the budget debate. Copyright Business Recorder, 2025
