Govt unveils around Rs75bn water development plan for FY27

September 10, 2026 (MLN): The government has allocated Rs74.92bn for 35 water-sector projects under the Public Sector Development Programme (PSDP) 2026-27, with the initiatives aimed at strengthening water storage, irrigation infrastructure, flood protection and urban water supplies across the country.

According to a document available with Wealth Pakistan, the projects have a combined estimated cost of Rs2.102 trillion, with a throw-forward of Rs880.267bn as of July 1.

The planned schemes are expected to protect around 15.76 million people from future floods and create an additional 12.8 million acre-feet (MAF) of water storage, according to APP.

Under Uraan Pakistan, the government plans to increase surface water storage from 13.5 MAF in 2023-24 to 23.5 MAF by 2029. With the additional capacity envisaged under the listed projects, total storage could reach 26.3 MAF.

A major portion of the programme is focused on dam development, with 21 projects covering the Diamer-Basha, Mohmand, Nai Gaj and Naulong dams, besides a range of large, medium and small dams.

These projects are intended to improve water availability for irrigation, industrial use and domestic consumption.

The government also plans to reduce irrigation conveyance losses by 33% and increase farm-level water availability from 63.5 MAF to 84.2 MAF.

The targeted improvement will be supported through the remodelling and lining of irrigation systems and completion of major schemes, including the Pat Feeder, Kachhi Canal Phase-I, Chashma Right Bank Canal and Kaitu Weir Irrigation and Power Project Component-I.

The programme is expected to replace ageing irrigation infrastructure and develop a command area of 1.59 million acres, while water-use efficiency is targeted to rise from 40% to 70% by 2029.

For Karachi, the government has included the Greater Karachi Bulk Water Supply Scheme K-IV, 260 MGD Phase-I, along with improvements to the Kalri Baghar Feeder and Keenjhar Lake.

The K-IV project is expected to add 260 million gallons per day (MGD) to Karachi's water supply, increasing overall availability from 650 MGD to 910 MGD.

The water programme also includes the installation of a telemetry system at 27 strategic locations across the Indus Basin to enable real-time monitoring of river flows, barrage gate operations and water levels.

A central data centre and dedicated workstations for relevant stakeholders are also planned to provide round-the-clock access to water-related information.

The wider strategy targets an increase in the culturable command area to 20 million acres, alongside lower water losses, reclamation of waterlogged and saline land, higher agricultural output and improved food security.

Flood management forms another key component of the programme. The Integrated Flood Risk Management Plan covers implementation of the National Flood Protection Plan, the updated umbrella PC-I of the Flood Protection Sector Project-III, a JICA-supported flood-management project in the Indus Basin and restoration of flood-damaged portions of the Kachhi Canal.

The flood-resilience component includes 166 flood-protection schemes, 457 telemetry stations and five regional forecasting centres, supported by institutional strengthening, capacity building, watershed management and research.

Restoration of the Kachhi Canal is planned across 323.47 kilometres.

The government estimates that the flood-protection measures will safeguard 15.76 million people, 2.276 million houses and 8.05 million acres of agricultural land, besides protecting 76 schools, 331 kilometres of metalled roads, 64 villages, 223 tube wells, 80 miles of irrigation canals and 12 basic health units.

The interventions will also cover 3,825 farm families and support reclamation of 121 acres of land.

As part of its long-term water security agenda, the government aims to increase the water sector's share of total PSDP allocations by 20% by 2030, compared with a baseline of 10.52% and an interim target of 18% by 2029.

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