ISLAMABAD: Audit officials told the Public Accounts Committee (PAC) on Thursday that the Neelum-Jhelum Hydropower Project suffered a loss of Rs42.934 billion due to a technical flaw in its design. The flaw was blamed on the poor oversight of National Engineering Services Pakistan (Nespak).
Chaired by Acting Chairman Syed Naveed Qamar, the committee reviewed audit objections related to the Cabinet Division for the Fiscal Year 2024-25 and expressed concern over the alleged financial irregularities and losses involving Nespak.
The committee was told that the power plant was shut down in July 2022 after one of the tunnels collapsed. Another accident occurred in a tunnel in May 2024, causing further disruption and resulting in losses worth billions of rupees in electricity generation.
According to the audit authorities, Nespak, as part of a joint venture, remained involved in all stages of the project, from design to construction supervision. The combined losses caused by rehabilitation work and suspension of electricity generation reached Rs42.934 billion.
Questioning repeated controversies surrounding Nespak, Qamar remarked, “Will every project of Nespak continue to face inquiries?”
Secretary Cabinet Division informed the committee that the federal government was conducting an inquiry into the matter. He said a committee, headed by former interior secretary Shahid Ali, was investigating the incident.
The committee directed the authorities to submit a detailed report on the issue. The committee also examined another audit para regarding losses of Rs874 million linked to Nespak’s subsidiary company in Qatar and non-recovery of Rs663 million.
Audit officials informed the committee that Nespak had registered a company in Qatar to provide engineering services, but the company suffered continuous losses. They said Nespak held a 49 percent share in the venture. PPP lawmaker Shazia Marri questioned Nespak’s handling of projects and said, “You were also consultant in the K-4 project. Here you entered into a joint venture with a company and caused such huge losses to the country.” She further remarked that the replies provided to the committee were unsatisfactory.
The committee directed the ministry concerned to conduct an inquiry into the matter.
