As per WAPDA Act, financial resources for WAPDA consist of:

1. Internal cash generation;
2. Grants made by the Government;
3. Loans obtained from the Government;
4. Sale proceeds of bonds issued under the authority of Government;
5. Loans obtained by the Authority from the financial institutions;
6. Foreign loans obtained from the World Bank, ADB etc. and
7. All other sums received by the Authority.

WAPDA works out its Annual Programme in Water and Power sectors, drawing funds from loans and grants from Federal and Provincial Governments. The size of the budget is approved by the NEC.