PAC seeks comprehensive report on alleged Nespak irregularities as Neelum-Jhelum losses reach Rs42.9 billion

Audit officials informed the Public Accounts Committee (PAC) that the Neelum-Jhelum Hydropower Project suffered losses of Rs42.934 billion due to a technical design flaw allegedly linked to weak oversight by National Engineering Services Pakistan.

According to a news report, the committee, chaired by Acting Chairman Syed Naveed Qamar, reviewed audit objections related to the Cabinet Division for FY2024-25 and expressed concern over financial irregularities and losses involving Nespak.

Officials told the committee that the hydropower plant was shut down in July 2022 after the collapse of one of its tunnels. They added that another tunnel-related incident occurred in May 2024, causing further disruption and additional losses in electricity generation.

According to audit authorities, Nespak, as part of a joint venture, remained involved in all stages of the project, including design and construction supervision. They stated that rehabilitation expenses and losses resulting from suspension of power generation collectively reached Rs42.934 billion.

Questioning repeated controversies linked to Nespak projects, Naveed Qamar asked whether every Nespak project would continue to face inquiries.

The Secretary Cabinet Division informed the committee that the federal government had already initiated an inquiry into the matter. He said a committee headed by former interior secretary Shahid Ali was investigating the incident.

The PAC directed authorities to submit a comprehensive report on the matter.

The committee also reviewed another audit objection concerning losses of Rs874 million linked to a Nespak subsidiary in Qatar and non-recovery of Rs663 million.

Audit officials said Nespak had established the company in Qatar to provide engineering services, but the venture continued to incur losses. They added that Nespak held a 49% stake in the company.

Shazia Marri questioned Nespak’s role in multiple projects and criticised the responses submitted to the committee, describing them as unsatisfactory.

The committee directed the relevant ministry to conduct an inquiry into the Qatar-related matter as well.