Neelum-Jhelum Hydro Project tunnel collapse causes Rs135 billion in losses

Nespak reports Rs35 billion in physical damage and over Rs100 billion in losses from halted electricity generation due to tunnel collapse at Neelum-Jhelum project

The National Engineering Services Pakistan (Nespak) informed the Senate Standing Committee on Cabinet Secretariat that a tunnel collapse at the Neelum-Jhelum Hydroelectric Project has resulted in Rs35 billion in physical damage and over Rs100 billion in losses due to halted power generation. 

Nespak officials stated that three committees have been formed to investigate the collapse, which occurred 5.5 km underground. The inquiry is assessing whether the issue stems from the project’s consultants or the geological conditions at the site.

Additionally, Nespak’s managing director briefed the committee on the company’s performance, highlighting its involvement in 4,822 projects both domestically and internationally. This includes 595 completed projects in 40 countries, such as Afghanistan, Azerbaijan, and Saudi Arabia.

The committee also reviewed the status of ongoing Nespak projects and directed a list of these projects to be presented at the next session.

In other matters, the committee discussed the Cannabis Control and Regulatory Authority (Amendment) Bill, 2025, which proposes allocating 1% of the authority’s annual fund for corporate social responsibility initiatives, including rehabilitation centers and poverty alleviation programs. After deliberations, the committee deferred the bill and requested recommendations from the Cannabis Authority.

The committee also reviewed the Pakistan Telecommunication Authority’s roll-out obligations concerning right-of-way policies and decided to invite the Ministry of Information Technology for a detailed briefing at the next meeting. Other items on the agenda were deferred due to the absence of members.

Senators attending the session included Farooq Hamid Naek, Fawzia Arshad, Dr. Afnanullah Khan, and Shahadat Awan, with special invitees Bilal Khan Mandokhel and Sardar Al Haj Muhammad Umer Gorgaij.

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