By our correspondent
ISLAMABAD: The parliament has been informed that the Neelum–Jhelum Hydropower Project has incurred financial losses exceeding Rs 42.93 billion, following a series of technical failures, design deficiencies and prolonged operational shutdowns, according to audit officials who briefed lawmakers during a meeting of the Public Accounts Committee.
Officials told the committee that the engineering consultancy firm National Engineering Services Pakistan (NESPAK) had been engaged at multiple stages of the project, including design oversight and construction supervision. However, auditors observed that despite its extensive involvement, the firm had failed to adequately prevent or mitigate critical technical flaws that later emerged during operations.
During the briefing, it was revealed that the Neelum–Jhelum tunnel suffered a major collapse in July 2022, which forced a complete shutdown of the power plant. A second major disruption was reported in May 2024, further delaying restoration work and significantly affecting electricity generation capacity. These repeated breakdowns, officials said, resulted in sustained interruptions to power supply and substantial financial losses due to halted production.
The cumulative impact of these disruptions was estimated at Rs 42.93 billion, equivalent to approximately 42 billion, 93 crore and 40 lakh rupees, reflecting both direct revenue losses and broader operational costs linked to prolonged inactivity.
The Ministry of Cabinet Division informed legislators that an official inquiry was currently underway into the matter. The investigation is being led by a committee headed by former Interior Secretary Shahid Ali, which has been tasked with examining issues of accountability, design integrity and procedural oversight in the execution and maintenance of the project.
