Audit Report Reveals Massive Financial Losses at Neelum-Jhelum Hydropower Project
ISLAMABAD: Pakistan’s Neelum-Jhelum Hydropower Project has suffered heavy operational and financial losses, with an audit report revealing that the prolonged shutdown of the facility has resulted in a cumulative loss of Rs128 billion over the past two years.
According to the Auditor General of Pakistan’s report, the project is incurring an annual net loss of Rs29 billion, while losses due to the suspension of plant operations have reached Rs99 billion.
The report further states that the project’s inability to secure tariff approval has led to an additional revenue shortfall of Rs77.346 billion, pushing the Neelum-Jhelum Hydropower Project into a severe financial crisis.
It also notes that the project’s current liabilities exceed its current assets by Rs307.894 billion, highlighting its deteriorating financial position.
The audit report also raised concerns about other major hydropower projects, including the Dasu Hydropower Project and the Diamer-Bhasha Dam. According to the report, shortcomings in long-term planning for these projects, along with the Neelum-Jhelum project, could impose a financial burden of nearly Rs3.9 trillion on the national exchequer.
The report added that during a single financial year, these projects collectively contributed to direct losses, reduced revenues, and an overall financial impact of approximately Rs358 billion.
