ISLAMABAD, Nov 16 (Wealth Pakistan): Azad Jammu and Kashmir (AJ&K) will receive three new hydropower projects worth Rs16.02 billion. The Ministry of Planning, Development and Special Initiatives shared the details in its Monthly Development Update for November 2025.
Projects Cleared to Meet Local Power Needs
The Central Development Working Party approved the schemes in October 2025. Demand for electricity in AJ&K is rising due to population growth and the expansion of local industries.
As a result, the government aims to use the region’s natural water resources for clean and affordable power. The new schemes will reduce dependence on imported fuels and support the renewable energy share in the national grid.
Efforts to Improve Electricity Supply
The projects will improve electricity supply in several districts of AJ&K. They will also help reduce power shortages and support local distribution systems.
In addition, the schemes will follow approved procedures for design, procurement and construction through regional agencies.
Evaluated Through Standard Process
Each scheme went through the CDWP appraisal process. The review covered technical strength, economic feasibility and expected social impact.
The construction work will create jobs. Later, households, small businesses and public services will benefit from better energy reliability.
Linked to Broader Sector Reforms
The government is working on wider reforms to support sustainable power generation. For FY2025-26, the energy sector received a PSDP allocation of Rs122.65 billion.
However, expenditures during July to October were recorded at Rs2.54 billion. The approved hydropower schemes are part of the effort to reduce exposure to global fuel prices and use more domestic resources.
Monitoring and Timely Progress
The projects will be tracked through the Ministry’s Monitoring and Evaluation system. In October, the system reviewed 22 development projects against a target of 19.
This mechanism will help identify delays, manage costs and ensure timely progress.
Support for Regional Development
These schemes support wider development activities in AJ&K and Gilgit-Baltistan. The two regions received Rs81.80 billion under the PSDP for the ongoing fiscal year.
Stable electricity plays a key role in improving economic activity, supporting social services and expanding local opportunities.
Step Toward Long-Term Stability
The Monthly Development Update concludes that the three hydropower projects will strengthen the region’s energy system. Once completed, they will support reliable electricity, attract investment and improve living standards in AJ&K.