By Ayesha Saba

Major water-sector projects, particularly large dams and hydropower schemes, have emerged as one of the biggest contributors to Pakistan’s growing development liabilities, with financing requirements running into hundreds of billions of rupees.

According to a presentation prepared for the Annual Plan Coordination Committee (APCC), the country’s largest water infrastructure projects account for a substantial share of the federal development portfolio’s throw-forward, which has reached Rs10.818 trillion.

The document identifies Diamer Bhasha Dam, Dasu Hydropower Project, Mohmand Dam and Tarbela 5th Extension among the projects driving the increase in development liabilities.

Official figures show that Diamer Bhasha Dam is the largest water-sector commitment in the federal portfolio. The project carries a total cost of Rs1.361 trillion and a throw-forward of Rs1.097 trillion. Despite receiving an allocation of Rs27.8 billion during FY2025-26, it requires an estimated Rs153.3 billion in FY2026-27.

The Dasu Hydropower Project represents another major fiscal commitment. With a total project cost of Rs1.738 trillion, the scheme still carries a throw-forward of Rs634.9 billion. The project received Rs20 billion during FY2025-26 and is projected to require Rs145 billion next year.

Similarly, Mohmand Dam has a total cost of Rs665.7 billion and an outstanding liability of Rs532.4 billion. According to the presentation, the project received Rs31.2 billion in FY2025-26 and will require Rs163.8 billion in FY2026-27.

The document also highlights the Tarbela 5th Extension project, which has a total cost of Rs316.4 billion. The project is expected to require Rs59.5 billion in the next fiscal year.

Together, these four major projects account for financing requirements exceeding Rs521 billion in FY2026-27 alone.

The presentation notes that revisions and expected revisions in the cost of major projects, including Diamer Bhasha Dam, Dasu Hydropower Project, Mohmand Dam and Tarbela 5th Extension, contributed significantly to the increase in overall throw-forward during the current fiscal year.

Beyond these flagship schemes, the water sector includes several other projects with sizeable financing needs. These include the installation of a telemetry system, Kachhi Canal Phase-II and multiple foreign-assisted water infrastructure projects.

According to the Planning Ministry’s data, the overall portfolio of water-sector projects has a combined cost of Rs5.368 trillion and a throw-forward of Rs3.079 trillion. The sector received Rs128.8 billion under PSDP 2025-26 but is projected to require approximately Rs969.1 billion in FY2026-27.

The figures illustrate the scale of future financing commitments associated with Pakistan’s efforts to expand water storage, hydropower generation, irrigation infrastructure and water management systems.

The presentation underscores that managing the financing requirements of these mega projects will remain a key challenge for development planners as they seek to balance strategic infrastructure investments with broader fiscal constraints.

Credit: INP-WealthPk