ISLAMABAD: Bringing to fruition Prime Minister Imran Khan’s plans to address the water crisis in the country, the Pakistan Army on Monday contributed more than one billion rupees ($81m) for the construction of much-needed dams.
Chief of Army Staff (COAS) General Qamar Javed Bajwa presented the cheque to Mian Saqib Nisar, the Chief Justice of Pakistan (CJP), on behalf of the army.
The CJP launched the fundraising campaign for the construction of two water reservoirs, namely Diamer Bhasha and Mohmand dams, in July this year. The estimated amount required for the construction of the dams – located in Gilgit-Baltistan and the Mohmand tribal district — is $14 billion, of which Rs2.9 billion has already been collected.
“The Pakistan Army shall continue to contribute toward nation-building as a national institution,” Major General Asif Ghafoor, a military spokesperson, said in a tweet.
Meanwhile, PM Khan met with Lt. Gen. (Retired) Muzammil Hussain, the Chairman of the Water and Power Development Authority to press upon the urgency of constructing the dams. “I may supervise the project myself, given the urgency,” PM Khan said in tweet.
On September 7, he had discussed the ongoing water crisis in a video message to the nation and urged all nationals, especially overseas Pakistanis, to contribute at least $1,000 toward the cause.
PM Khan and the CJP in individual messages have reiterated the need to address the issue, with water scarcity identified as the biggest problem of the country.
New push to raise funds for dams in Pakistan
New push to raise funds for dams in Pakistan
- Army contributes more than Rs1bn for the initiative
- PM Khan discusses urgency of building Diamer Bhasha and Mohmand dams
Pakistan PM orders accelerated privatization of power sector to tackle losses
- Tenders to be issued for privatization of three major electricity distribution firms, PMO says
- Sharif says Pakistan to develop battery energy storage through public-private partnerships
ISLAMABAD: Pakistan’s prime minister on Monday directed the government to speed up privatization of state-owned power companies and improve electricity infrastructure nationwide, as authorities try to address deep-rooted losses and inefficiencies in the energy sector that have weighed on the economy and public finances.
Pakistan’s electricity system has long struggled with financial distress caused by a combination of factors including theft of power, inefficient collection of bills, high costs of generating electricity and a large burden of unpaid obligations known as “circular debt.” In the first quarter of the current financial year, government-owned distribution companies recorded losses of about Rs171 billion ($611 million) due to poor bill recovery and operational inefficiencies, official documents show. Circular debt in the broader power sector stood at around Rs1.66 trillion ($5.9 billion) in mid-2025, a sharp decline from past peaks but still a major fiscal drain.
Efforts to contain these losses have been a focus of Pakistan’s economic reform program with the International Monetary Fund, which has urged structural changes in the energy sector as part of financing conditions. Previous government initiatives have included signing a $4.5 billion financing facility with local banks to ease power sector debt and reducing retail electricity tariffs to support economic recovery.
“Electricity sector privatization and market-based competition is the sustainable solution to the country’s energy problems,” Prime Minister Shehbaz Sharif said at a meeting reviewing the roadmap for power sector reforms, according to a statement from the prime minister’s office.
The meeting reviewed progress on privatization and infrastructure projects. Officials said tenders for modernizing one of Pakistan’s oldest operational hubs, Rohri Railway Station, will be issued soon and that the Ghazi Barotha to Faisalabad transmission line, designed to improve long-distance transmission of electricity, is in the initial approval stages. While not all power-sector decisions were detailed publicly, the government emphasized expanding private sector participation and completing priority projects to strengthen the electricity grid.
In another key development, the prime minister endorsed plans to begin work on a battery energy storage system with participation from private investors to help manage fluctuations in supply and demand, particularly as renewable energy sources such as solar and wind take a growing role in generation. Officials said the concept clearance for the storage system has been approved and feasibility studies are underway.
Government briefing documents also outlined steps toward shifting some electricity plants from imported coal to locally mined Thar coal, where a railway line expansion is underway to support transport of fuel, potentially lowering costs and import dependence in the long term.
State authorities also pledged to address safety by converting unmanned railway crossings to staffed ones and to strengthen food safety inspections at stations, underscoring broader infrastructure and service improvements connected to energy and transport priorities.
