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. During 9MFY25, installed capacity rose by ~11.0%, reaching ~46,605 MW (SPLY: ~42,131 MW). Within this overall capacity, WAPDA holds a significant share of 20%, contributing an installed capacity of 9,459MW. 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. Projects underway aim to add around 8,990 MW by 2029.

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 oversees overall administration and services.

By the end of 9MFY25, Pakistan generated 90,145 GWh of electricity. The generation mix comprised 46.3% from fossil fuels (coal, RLNG, and oil), 30.4% from hydropower, 19.1% from nuclear, and 4.2% from renewable sources such as wind, solar, and bagasse. This indicates a gradual transition toward a cleaner energy portfolio, supported by the growing adoption of solar and net-metered distributed systems, though their overall contribution remains limited. 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. Investments in transmission and distribution infrastructure, coupled with an accelerated expansion of renewable generation, are essential to ensure long-term energy reliability, affordability, and sustainability in meeting Pakistan’s rising demand. On the consumption side, the household sector remained the largest consumer, accounting for 49.6% of total electricity usage, followed by the industrial sector at 26.3%. The commercial sector consumed 8.6%, the agriculture sector 5.75%, with the balance utilized by other categories, including public lighting. 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. With a current generation capacity of 9,459 MW, WAPDA has major projects underway, including Mohmand Dam, Tarbela 5th Extension, Dasu Hydropower Project and Diamer Basha Dam. These projects are set for completion in 2025, 2026, 2027 and 2029 respectively. This expansion will enhance Pakistan’s renewable energy contribution, improving the overall energy mix and strengthening power supply reliability. These projects will be playing a crucial role in meeting the Country’s growing electricity demand and supporting sustainable economic growth. During 6MFY25, WAPDA reported approximately PKR 57bln in revenue and PKR 23bln in profit. (SPLY: PKR 38bln in revenue and PKR 17bln in profit).

As of 6MFY25, WAPDA remains highly leveraged, with a leverage ratio of 69.8% (FY24: 70.3%). Its total debt rose to PKR 737bln, up from PKR 701bln in FY24, primarily 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 Water and Power Development Authority ("WAPDA") issued five TFCs in series A–E, cumulatively amounting to PKR 35.2bln. These TFCs 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 TFC 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 TFCs into a single, unified instrument. This new instrument was titled the “WAPDA - Dasu Consolidated TFC - PKR 35.2bln,” effective from May 06, 2025. Following the consolidation, all stipulations and obligations of the TFCs remained wholly preserved, retaining their validity and enforceability in accordance with prior terms. Furthermore, the rights and obligations of all contractual parties were preserved in their entirety, with no alteration arising as a result of the consolidation. The rating of the consolidated TFC shall remain aligned with the ratings previously assigned to the five individual TFCs. The outstanding principal amount of PKR 28.3bln of Consolidated TFC will be paid in fifteen equal semi annual installments of PKR 1.9bln each, commencing from May'25. As of May'25, a total profit amounting of PKR 8.8bln and principal amounting PKR 18.5bln has been paid by WAPDA. The cost of Dasu Hydropower Project stood at PKR 1.74trln in May’25, a 258% increase from the original PKR 486bln approved in 2014. Key factors for this significant cost escalation include delay in project implementation, primarily due to difficulties in land acquisition, inflationary price escalations, and security-related costs. The total financing package for this project is PKR 144bln and comprises of distinct conventional and Islamic finance facilities classified as i) Facilities secured by an irrevocable, sovereign guarantee issued by the Government of Pakistan without SLR eligibility amounting to PKR 88bln and ii) Facilities secured by WAPDA's assets amounting to PKR 56bln. The profit of this TFC 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. There is also a call option attached to the TFC exercisable only after the expiry of the availability Period on instalment payment dates, subject to a 30 day's 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 FY25, the physical progress of the project stands at 26.8% and financial progress stands at 23.72%.

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

The TFC 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 favour of the Issue Agent. During each month WAPDA shall deposit an amount 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.