The Neelum-Jhelum Hydropower Project (NJHP) has been incurring substantial financial losses due to repeated closures, with an estimated annual loss of Rs. 42 billion to the national exchequer, Federal Minister for Water Resources Muhammad Moeen Wattoo informed the National Assembly in a written response.
The project has remained non-operational since May 2024 due to technical issues in the headrace tunnel. According to Wattoo, an obstruction located approximately 9.8 kilometers from the dam site has once again forced authorities to suspend operations.
The government is actively working to restore the project, with ongoing negotiations between officials and the contractor. To address the recurring technical problems, the federal government has established three separate committees to conduct thorough investigations.
In addition to these internal inquiries, the government engaged a Canadian engineering firm to carry out an independent investigation. The minister revealed that the firm has completed its inquiry and submitted its report on March 18, 2025. However, the findings are still under review by relevant authorities.
The significant financial impact of the project’s closure highlights the importance of resolving these technical issues promptly. The Neelum-Jhelum Hydropower Project represents a major investment in Pakistan’s energy infrastructure, and its continued non-operational status poses challenges for the country’s power generation capacity and financial resources.
