Wednesday, August 13, 2025

Neelum–Jhelum Tunnel Failure Triggers Massive Financial Blow

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The Neelum–Jhelum Hydroelectric Project has suffered a catastrophic setback after a key tunnel collapsed 5.5 kilometers underground, causing an estimated Rs135 billion in losses.

Officials from the National Engineering Services Pakistan (Nespak) told the Senate Standing Committee on Cabinet Secretariat that the disaster has two dimensions: around Rs35 billion in direct structural damage and over Rs100 billion in lost revenue due to the suspension of electricity generation.

Three separate inquiry bodies have been tasked with pinpointing the cause — whether it was a fault in the project’s design and oversight or a geological instability that engineers failed to anticipate. The investigation is ongoing.

Nespak’s Global Footprint Highlighted Amid Crisis

While briefing senators, Nespak’s Managing Director also outlined the firm’s broader performance. The state-owned engineering consultancy has been involved in 4,822 projects worldwide, completing 595 of them in 40 countries, from Afghanistan and Azerbaijan to Saudi Arabia.

The committee asked Nespak to present a detailed breakdown of its current projects in the next meeting for closer scrutiny.

Cannabis Regulation Bill Put on Hold

The session also addressed legislative business, including the Cannabis Control and Regulatory Authority (Amendment) Bill, 2025. The proposed change would earmark 1% of the authority’s annual budget for corporate social responsibility programs — notably rehabilitation centers and poverty reduction schemes.

After discussion, senators decided to defer the bill, asking the Cannabis Authority to submit detailed recommendations before moving forward.

Telecom Policy Concerns and Deferred Items

Members briefly reviewed the Pakistan Telecommunication Authority’s compliance with right-of-way policies. They agreed to invite the Ministry of Information Technology to explain the situation in depth at the next sitting. Several other agenda items were postponed due to the absence of key members.

Senators in attendance included Farooq Hamid Naek, Fawzia Arshad, Dr. Afnanullah Khan, and Shahadat Awan, alongside special invitees Bilal Khan Mandokhel and Sardar Al Haj Muhammad Umer Gorgaij.

Ali Khan
Ali Khan
Ali Khan is a senior journalist covering politics, business, and national news across Pakistan. His reporting combines accuracy, insight, and SEO-rich writing to deliver timely updates and in-depth stories to digital audiences across leading Pakistani news platforms.

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