Neelum-Jhelum Shutdown Costs National Exchequer Rs. 42 Billion Annually

The repeated closure of the Neelum-Jhelum Hydropower Project (NJHP) has led to severe financial losses, with an estimated annual loss of Rs. 42 billion to the national exchequer, according to a written response submitted to the National Assembly by Federal Minister for Water Resources Muhammad Moeen Wattoo. The project has remained non-operational since May 2024 due to a technical fault in the headrace tunnel. Wattoo explained that an obstruction approximately 9.8 kilometers from the dam site has once again forced the suspension of operations. Efforts are currently underway to restore the project, with negotiations ongoing between the government and the contractor. To thoroughly investigate the recurring faults, the federal government has established three separate committees. In addition to these committees, the government also enlisted the services of a Canadian engineering firm to carry out an independent investigation. The firm has completed its inquiry and submitted the report on March 18. However, the findings are still under review, according to the minister.