Neelum-Jhelum Project: Revelation of Over Rs. 42.93 Billion Loss to National Exchequer

(Digital Itla) During a meeting of Parliament’s Public Accounts Committee in Islamabad, government audit officials revealed that NESPAK committed technical shortcomings and poor supervision in the Neelum-Jhelum project.

Officials stated that the Neelum-Jhelum power plant was shut down in July 2022 after a tunnel collapse.

According to Auditor General officials, another accident occurred in the Neelum-Jhelum tunnel in May 2024, causing billions of rupees in losses due to halted electricity production.

Authorities further stated that the NESPAK joint venture remained involved in all stages of the project, from design to construction supervision. Due to restoration expenses and suspended electricity generation, the total loss has reached more than Rs. 42.934 billion.

The Secretary of the Cabinet Division stated that the federal government is conducting an inquiry into the matter, with a committee headed by former Interior Secretary Shahid Ali overseeing the investigation.