Ayesha Saba

Three new hydropower projects worth a combined Rs16.02 billion have been approved to boost electricity generation and meet rising energy needs in Azad Jammu and Kashmir (AJ&K), according to the Monthly Development Update for November 2025 issued by the Ministry of Planning, Development and Special Initiatives.

The schemes were cleared by the Central Development Working Party (CDWP) in October 2025 as part of the government’s ongoing efforts to expand indigenous clean energy capacity. The report notes that the project aims to enhance the availability of reliable and affordable electricity in AJ&K, where power demand continues to grow due to population expansion, residential development and increasing industrial activity.

Designed to harness the region’s natural water resources, the new hydropower initiatives are also expected to reduce reliance on more expensive imported fuels and increase the share of renewable energy in the national energy mix. The Planning Ministry said the projects will support local distribution networks, help reduce power shortages and contribute to a more stable electricity supply across several districts of AJ&K. Implementation will be carried out through relevant provincial and regional agencies under established procedures for design, procurement and construction.

According to the document, the three schemes were assessed under CDWP’s standard appraisal process, which evaluates technical viability, economic feasibility and social impact. The projects are expected to create employment opportunities during construction and strengthen long-term energy reliability for households, businesses and social services in the region. The Ministry emphasised that dependable electricity is essential for improving local livelihoods and enabling future industrial growth.

The approval comes as the government advances broader reforms to strengthen the energy sector, improve planning efficiency and prioritise sustainable power projects. The energy sector received a total PSDP allocation of Rs122.65 billion for FY2025-26, though expenditures during July to October stood at Rs2.54 billion. The hydropower schemes for AJ&K form part of broader efforts to increase reliance on domestic resources for power generation.

The report states that enhancing hydropower capacity aligns with national development priorities, including expanding energy access, building resilience against global fuel price volatility and supporting environmentally sustainable growth. The initiatives also fit within regional development strategies aimed at utilising AJ&K’s natural topography and water resources to generate clean electricity for local consumption.

The Planning Ministry’s Monitoring and Evaluation system will track implementation progress. In October, the system assessed 22 development projects against a monthly target of 19, with upcoming monitoring rounds expected to identify bottlenecks and ensure the timely execution of the hydropower schemes within approved financial limits.

The Monthly Development Update adds that the new energy initiatives complement other development projects underway in AJ&K and Gilgit-Baltistan, which together received Rs81.80 billion under the PSDP for the current fiscal year. Strengthening energy infrastructure, it states, is critical for supporting ongoing development activities and expanding economic opportunities for local communities.

The report concludes that approving the three hydropower projects marks a significant step toward improving AJ&K’s energy infrastructure and supporting long-term regional development. The government expects the schemes to enhance electricity supply, attract investment and improve living standards once completed.

Credit: INP-WealthPk