Government Proposes Rs91 Billion for Power Sector Development in Upcoming Fiscal Year

Islamabad: The federal government has proposed an allocation of Rs91 billion for the Power Division under the Public Sector Development Programme (PSDP) for the upcoming fiscal year. The funding aims to strengthen Pakistan’s electricity infrastructure and support key transmission and distribution projects across the country.

According to budget proposals, most of the allocation will be directed toward ongoing projects, while a portion has been reserved for new development initiatives.

Allocation for Ongoing and New Projects

Budget documents show that Rs86 billion has been earmarked for ongoing projects. In addition, more than Rs4 billion has been proposed for new development schemes.

The government believes these investments will help improve the power sector and meet the country’s growing energy requirements.

Budget Breakdown

Category	Proposed Allocation
Total Power Division Budget	Rs91 Billion
Ongoing Projects	Rs86 Billion
New Development Projects	More Than Rs4 Billion

Special Focus on Battery Energy Storage System

One of the key highlights of the upcoming budget is the Battery Energy Storage System (BESS) project. More than Rs3 billion has been proposed for the project during the next fiscal year.

The initiative is designed to improve frequency regulation within the power system. The total estimated cost of the project stands at Rs112 billion.

BESS Project Details

Project	Proposed Allocation	Total Cost
Battery Energy Storage System (BESS)	More Than Rs3 Billion	Rs112 Billion

Major Funding for Transmission and Distribution Projects

The government has also proposed substantial funding for projects aimed at strengthening electricity transmission and distribution networks nationwide.

An amount of Rs2.91 billion has been allocated for improving the power distribution network of the Sukkur Electric Power Company (SEPCO). Meanwhile, Rs3.9 billion has been proposed for a project to transmit electricity from the Mohmand Dam.

Additionally, Rs10.83 billion has been earmarked for Phase-I of the Dasu Hydropower Project transmission scheme.

Key Projects and Proposed Funding

Project	Proposed Allocation
SEPCO Distribution Network Improvement	Rs2.91 Billion
Mohmand Dam Transmission Project	Rs3.9 Billion
Dasu Hydropower Phase-I Transmission Scheme	Rs10.83 Billion
CASA-1000 Interconnection Project	Rs5.11 Billion
Suki Kinari Hydropower Transmission Project	Rs3 Billion
NTDC Telecommunications & SCADA Upgrade	Rs3.5 Billion
Islamabad West Grid Station Project	Rs9.38 Billion

Plan to Strengthen the National Power Network

The government has proposed Rs5.11 billion for the CASA-1000 Interconnection Project. In addition, Rs3 billion has been allocated for the transmission project associated with the Suki Kinari Hydropower Project.

The National Transmission and Despatch Company (NTDC) is expected to receive Rs3.5 billion to upgrade its telecommunications and SCADA systems.

Furthermore, Rs9.38 billion has been proposed for the Islamabad West Grid Station project as part of broader efforts to strengthen the country’s power transmission infrastructure.

Government’s Continued Focus on the Energy Sector

The proposed budget allocations indicate the government’s continued commitment to improving power generation, transmission, and distribution systems across Pakistan.

Officials believe that successful implementation of these projects will help ensure a more reliable electricity supply while supporting the long-term stability and growth of the country’s energy sector.