Analysis: BUDGET 2026-27: Can Pakistan afford to delay its dams?

The proposed allocation has raised concerns over the pace of work on major ongoing hydropower projects, reservoirs and flood mitigation schemes at a time when the country is struggling with recurring floods, shrinking per capita water availability and high electricity costs. Officials and experts say accelerated investment in water infrastructure is essential for managing the impact of climate change and producing clean, reliable and low-cost electricity needed for sustainable economic growth. They argue that the country needs at least Rs500bn to speed up four major ongoing hydropower projects and start civil work on new water storage projects, especially in view of concerns over upstream water developments by India. “At a time when our country faces mounting water scarcity and growing need for affordable and clean energy, the water and power sectors appear to have received less attention in public investment priorities, with development allocations falling short of the resources required for the timely completion of critical ongoing projects and the launch of new water infrastructure schemes,” a senior official of the Water and Power Development Authority (Wapda) said. The official, who requested anonymity, said the proposed allocation of Rs179bn would be insufficient for multibillion-dollar dams and hydropow