Pakistan Budget 2023-24: Power Sector Projects Allocated Over Rs205 billion

Pakistan Budget 2023-24: Power Sector Projects Allocated Over Rs205 billion

Islamabad, June 9, 2023: The Pakistani government has allocated Rs205.38 billion for power sector projects in the budget for the fiscal year 2023-24, as revealed in the official budget documents released on Thursday.

The power sector will witness a significant public investment from the Public Sector Development Program (PSDP) 2023-24, excluding Independent Power Producers (IPPs). The allocation of Rs205.383 billion reflects the government’s commitment to developing the power sector and achieving the energy goals outlined in Vision 2025.

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Key highlights of the power sector portfolio for PSDP 2023-24 include:

1. Mega power generation projects: Several major power generation projects have been allocated funds in the PSDP 2023-24. These projects include the 2,160 MW Dasu Hydropower Project (Rs. 58,597 million), 1,410 MW Tarbela IV Extension (Rs. 590 million), 969 MW Neelum Jhelum (Rs. 4,828 million), and 1,530 MW Tarbela V Extension (Rs. 4,449.463 million).

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2. Jamshoro Coal Fired Power Plant: The 660 MW Jamshoro Coal Fired Power Plant, with Unit No. 1 expected to be added to the system in 2023, has been included in the PSDP 2023-24 under the Power Division portfolio. The project has been allocated Rs. 12,000 million.

3. Karachi Coastal Nuclear Power Plant: The 2×1,145 MW Karachi Coastal Nuclear Power Plant, commissioned by the Pakistan Atomic Energy Commission (PAEC), has started generating electricity with Unit-2 in April 2022. The project has been included in the PSDP 2023-24 to clear its outstanding liabilities, with an allocation of Rs. 14,866.149 million.

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4. Mega transmission and distribution projects: The PSDP 2023-24 includes major transmission projects such as CASA-1000 (Rs. 16,099.255 million), Dasu Evacuation (Rs. 5,667.094 million), Suki Kinari Evacuation (Rs. 13,800 million), and the AMI IESCO project in the distribution sector (Rs. 3,000 million). Additionally, eight projects for supplying electricity to Special Economic Zones (SEZs) have been allocated a total of Rs. 7,267.352 million.

The budget allocation for the power sector projects aims to increase the country’s power generation capacity and enhance the transmission and distribution infrastructure. By the end of June 2024, the transmission sector is expected to have an additional capacity of 3,750 MVA on the 500kV grid and 6,900 MVA on the 220kV grid. The transmission lines will be extended by 522 km on the 500kV level and 668 km on the 220kV level.

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Furthermore, investments in the distribution sector will result in the electrification of 6,985 villages, adding 1,403,592 consumers for Distribution Companies (DISCOs) during the fiscal year 2023-24. The distribution lines of 132 kV will be extended by 1,843 km, and the capacity of 132 kV grids will be strengthened by 4,199 MVA.

The allocation of funds to power sector projects reflects the government’s commitment to overcoming energy challenges and ensuring a reliable and efficient power supply across the country.

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