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Pakistan proposes Rs91 billion for Power Sector Development in FY 2026-27

A major focus of the proposed budget is the Battery Energy Storage System (BESS) project

ISLAMABAD: The federal government has reportedly proposed Rs91 billion for the Power Division under the Public Sector Development Program (PSDP) for the next fiscal year of 2026-2027.

According to the proposal, Rs86 billion has been allocated for ongoing projects. More than Rs4 billion has been set aside for new development projects.

A major focus of the proposed budget is the Battery Energy Storage System (BESS) project. The government has recommended more than Rs3 billion for the project in the upcoming fiscal year. The total estimated cost of the project is Rs112 billion. The system is expected to help improve power supply stability and frequency control.

The government has also proposed Rs2.91 billion to strengthen the power distribution network of Sukkur Electric Power Company (SEPCO). In addition, Rs3.9 billion has been allocated for a project that will transmit electricity from the Mohmand Dam. For Phase-I of the Dasu Hydropower Project transmission scheme, the government has proposed Rs10.83 billion.

Another Rs5.11 billion has been recommended for the CASA-1000 Interconnection Project. The transmission project linked to the Suki Kinari Hydropower Project is expected to receive Rs3 billion.

For the CASA-1000 Interconnection Project, an allocation of Rs5.11 billion has been suggested. Additionally, Rs3 billion has been proposed for the transmission project associated with the Suki Kinari Hydropower Project.

The National Transmission and Despatch Company (NTDC) may receive Rs3.5 billion to upgrade its telecommunications and SCADA systems. The government has also proposed Rs9.38 billion for the Islamabad West Grid Station project. The project aims to strengthen the country's power transmission network.

The proposed allocations show the government's continued efforts to improve power generation, transmission, and distribution systems across Pakistan. These projects are expected to support a more reliable and efficient electricity network in the future.

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