Neelum-Jhelum Project shutdown bleeds Rs42b annually, reveals federal minister

The prolonged shutdown of the Neelum-Jhelum Hydropower Project is causing a massive annual loss of Rs42 billion to the national exchequer, the National Assembly was informed on Monday.

Federal Minister for Water Resources Moin Wattoo, in a written reply, confirmed that the project has remained non-operational since May 2024 due to a serious defect in the headrace tunnel.

According to the minister, a blockage located 9.8 kilometres from the dam site has once again forced a complete halt in operations.

Efforts are currently underway to negotiate with the original contractor to find a feasible way to revive the project, which has faced multiple interruptions since its inauguration.

To get to the bottom of the technical failures, the federal government has formed three separate investigative committees. In addition, the services of Canadian engineering consultancy firm Dan Baraks were hired to conduct an independent inquiry.

The Canadian firm has completed its investigation and submitted its report on March 18, but the findings are still under government review, the minister stated.

The Neelum-Jhelum Hydropower Project, once hailed as a cornerstone of Pakistan’s energy future, has now become a cautionary tale of mismanagement and structural oversight — with billions draining from public coffers as a result.