The Pakistan Water and Power Development Authority ("WAPDA") redefined its Power wing to focus on hydropower generation and the operation and maintenance of powerhouses after its unbundling in 2007. Its mandate now centers on the efficient development of water and hydropower resources and stands as the Nation’s largest hydel energy producer. Pakistan’s total installed power generation capacity was recorded at ~41,121 MW in FY25 (FY24: ~45,888 MW). Whereas, it increased to ~49,651MW in 9MFY26, up ~8.5% YoY from ~45,782MW in 9MFY25, largely owing to rapid growth in net-metered rooftop solar capacity. The sector’s average capacity factor remained relatively low at ~29.9% in 9MFY26, reflecting faster growth in installed capacity relative to grid-based utilization. Within this overall capacity, WAPDA’s installed hydropower capacity of 9,459MW represents approximately 19% of Pakistan’s total installed generation capacity and around 86% of the country’s overall hydel capacity. WAPDA operates under two key business segments: hydropower generation and water resource development, including dams, reservoirs, irrigation, and navigation locks. It constructs, operates, and maintains hydropower assets for affordable, clean electricity and develops water storage facilities to address Pakistan's water challenges.

WAPDA is an autonomous and statutory body, 100% owned by the Government of Pakistan ("GoP" or the "Government") and established under the 1958 WAPDA Act. WAPDA holds high strategic importance as Pakistan's sole platform for developing water and hydropower resources. Given its crucial role and the Government’s strong support and direct oversight, full ownership and control are expected to remain with the Government in the coming years.

The WAPDA's Chairman and department heads for power, water and finance segments are directly appointed by the Government of Pakistan. WAPDA operates under the administrative control of the Federal Government, which exercises close oversight over its budget, accounts, powers, duties, and projects. Most of WAPDA’s projects are funded by the Government through grants, re-lending, and loans, along with a favorable tariff scheme that covers operating costs and ensures a reasonable return on investment. Lt. General (Retd.) Muhammad Saeed, the Chairman of WAPDA, is a retired army professional and a diplomat who brings the experience of 4 decades with him to the management of the WAPDA.

WAPDA's management structure is divided into three wings i) Water ii) Power and iii) Finance Wing. The Water Wing Member controls the wing through its divisions including North, Central, South and Northern Areas in addition to project specific zones including Mangla, Neelum Jhelum, Mohmand Dam, Diamer Basha Dam, and Dasu Hydropower Projects. The financial affairs of this wing are looked after by GM Finance (Water). Apart from project offices, there are other offices which provide various technical services to different projects. WAPDA Power Wing is responsible for operation and maintenance of the Hydel Power Stations under generation license granted by NEPRA in the name of General Manager (Hydel) Operation after the de-bundling of WAPDA into various companies. All the financial matters of Power Wing are managed by General Manager (Finance) Power under the control of Member Power. The Finance Wing oversees the financing functions of WAPDA and member finance is the administrative head of WAPDA Audit, Accounts, Finance, and cost centers. The General Manager (HRD) oversees overall administration and services.

Pakistan's total power generation recorded a modest recovery during 9MFY26, increasing by ~3.4% YoY to ~14,169MW from ~13,707MW in 9MFY25. The generation mix remained diversified, with thermal sources contributing ~47%, hydel ~30%, nuclear ~19%, and renewable energy ~4%. Despite diversification efforts, the power sector continues to face structural challenges, including transmission constraints, underutilization of relatively cost-effective renewable capacity, and mounting financial pressures from capacity payments and increasing power purchase costs. On the consumption side, the domestic sector remained the largest consumer, accounting for approximately 47.5% of total electricity consumption, followed by the industrial sector at ~31.5%. The commercial sector accounted for ~8.5%, while the agriculture sector contributed ~3.2%. The remaining ~9.4% was consumed by other categories, including supply to K-Electric through CPPA-G. Whereas, WAPDA remains Pakistan’s largest hydropower producer, with an installed hydel capacity of approximately 9,459MW. Relative to Pakistan’s latest total installed generation capacity of ~49,651MW, WAPDA alone represents around 19% of the country’s installed power capacity. Meanwhile, hydel sources as a whole account for approximately 22.1% of Pakistan’s installed capacity in 9MFY26, highlighting WAPDA’s dominant position within the domestic hydropower segment. WAPDA continues to undertake a substantial portfolio of strategic hydropower and water-resource projects. WAPDA has major projects underway, including Tarbela 5th Extension, Mohmand Dam, Dasu Hydropower Project and Diamer Basha Dam. Going forward, WAPDA aims to add approximately 8,990MW of hydropower capacity by 2029, positioning low-cost renewable electricity as a competitive challenge for thermal plants. These projects will be playing a crucial role in meeting the Country’s growing electricity demand and supporting sustainable economic growth. During FY25, WAPDA reported approximately PKR 115bln in revenue and PKR 60bln in profit. (SPLY: PKR 73bln in revenue and PKR 78bln in profit). Whereas, WAPDA reported approximately PKR 50bln in revenue and PKR 24bln in profit at the end of 6MFY26 (SPLY: PKR 57bln in revenue and PKR 23bln in profit)

As of 6MFY26, WAPDA remains highly leveraged, with a leverage ratio of 68.4% (FY25: 69.4%). Its total debt rose to PKR 804bln in 6MFY26, up from PKR 793bln in FY25 to finance hydroelectric projects. The long-term financing structure comprises a blend of foreign and local loans, sourced through government-backed, secured, and unsecured instruments. Key foreign borrowings include relent loans from the Government of Pakistan (IDA-backed), secured direct loans, and Eurobonds. WAPDA’s cash flows are largely reliant on payments from CPPA-G, while its liquidity position is supported by government grants, loans, and robust access to capital markets, underpinned by its government ownership and strategic importance in Pakistan’s power sector. The equity of the WAPDA stood at PKR 373bln at the end of 6MFY26 (FY25: PKR 349bln)

The Water and Power Development Authority ("WAPDA") issued five sukuks in series A–E, cumulatively amounting to PKR 52.8bln. These sukuks were floated at different intervals, beginning in May 2017 and ending in May 2024. Each of these instruments had been accorded the highest credit rating of “AAA” by PACRA. The sukuk issuances were primarily undertaken to partially finance stage-1 of the Dasu Hydropower Project ("Project") which includes the construction of a hydraulic structure on the Indus river and underground power generation facilities. To streamline its debt profile and reduce administrative complexities, WAPDA consolidated all five outstanding sukuks into a single, unified instrument. This new instrument was titled the “WAPDA - Dasu Consolidated Sukuk - PKR 52.8bln,” effective from May 06, 2025. The rating of the consolidated Sukuk remained aligned with the ratings previously assigned to the five individual sukuks. The profit of this Sukuk is being paid semi-annually in arrears at the rate of 6M Kibor+1.45% p.a calculated on a 365 days basis (or 366 days in case of leap year) on the outstanding principal amount. The outstanding principal amount of PKR 42.4bln of Consolidated Sukuk is paid in fifteen equal semi annual installments of PKR 2.8bln each commencing from May'25. As of May'26, total principal amounting to PKR 18.9bln and profit amounting to PKR 32.6bln have been paid by WAPDA. The latest profit payment of PKR 2.3bln and principal payment of PKR 2.8bln has been made in May'26. There is also a call option attached to the Sukuk exercisable only after the expiry of the availability period on installment payment dates, subject to a 30 day prior written irrevocable notice to the Investment agent. A prepayment price equivalent to 0.20% will be applicable to the amount being prepaid. As of Aug'26, the physical progress of the project stood at 31.56% and financial progress stood at 28.58%.

The claims of the Sukuk holders will rank superior to the claims of other stakeholders.

The Sukuk facility is covered through the GoP Guaranteed Backed Facilities i.e. Unconditional and irrevocable First Demand Guarantee covering principal and profit amount and any other amounts becoming due for payment in respect of the facilities from the Ministry of Finance, Government of Pakistan without SLR eligibility. WAPDA also maintains a Debt Payment Account with the Investment Agent which is held under exclusive lien in favor of the Issue Agent. During each month WAPDA shall deposit equivalent to the 1/6th of the instalment amount into the Debt Payment Account (not later than the 15th day of each month of the instalment period) so that the aggregate amount available in the Debt Payment Account on the upcoming instalment date is equal to the relevant instalment amount.