Neelum-Jhelum Hydropower Project to Remain Offline Until March 2028
Neelum-Jhelum Project Offline Until March 2028

The Neelum-Jhelum Hydropower Project, completed at a cost of Rs500 billion, will remain offline for approximately two years, with power generation expected to resume by March 2028. WAPDA Chairman Lt Gen (retd) Muhammad Saeed informed the Senate Standing Committee on Water Resources that around 80 percent of the project’s construction cost has already been recovered through electricity generation.

Senate Committee Expresses Concern Over Water Crisis

The committee, chaired by Senator Jam Saifullah Khan, observed that Pakistan faces an increasingly severe water crisis and urgently needs to strengthen water security by accelerating reservoir construction. Members expressed concern that Pakistan has not built a major dam since Tarbela and Mangla, while neighboring India has constructed around 5,000 dams.

The chairman proposed an in-camera meeting on the implications of the Indus Waters Treaty, future reservoir development, and national water security. The committee decided to invite representatives from the Ministry of Foreign Affairs, the World Bank, the National Disaster Management Authority (NDMA), the Federal Flood Commission (FFC), and provincial irrigation departments for detailed deliberations.

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Neelum-Jhelum Tunnel Repairs Underway

WAPDA informed the committee that repairs to the damaged tunnel are progressing. Chairman Saeed noted that geological studies before construction had identified the area as a seismic zone and confirmed that investigations into the incident are underway. He expressed confidence that the project would resume operations by March 2028, describing it as a low-cost hydropower facility critical to the national grid.

The committee chairman emphasized that the causes of tunnel failure and cost escalations must be investigated through a transparent and independent inquiry. He assured that the committee would fully support an impartial investigation to ensure accountability and safeguard future national infrastructure projects.

Concerns Over SUPARCO Briefing and River Encroachments

The committee expressed dissatisfaction with a briefing by Pakistan SUPARCO on monitoring river encroachments via satellite imagery, with members stating the presentation lacked clarity and failed to inspire confidence. The WAPDA chairman informed that a committee constituted by the Prime Minister had made significant progress in removing obstacles from river channels ahead of the monsoon season.

The committee decided to hold a separate meeting on constructing water storage facilities on the Chenab River and broader water security issues. Lawmakers were informed that a draft Dam Safety Council Bill, prepared with technical assistance from the Asian Development Bank, had been finalized and would soon be submitted for approval to establish a dedicated legal framework for dam safety.

Groundwater Depletion and Provincial Data

The committee sought written data on groundwater levels from every province and district after Punjab officials reported that water tables continue to decline in Lahore, Okara, Sahiwal, Pakpattan, Multan, and Vehari, highlighting growing pressure on groundwater resources. While reviewing compliance, the committee was informed that work on the river encroachment monitoring system is underway via satellite imagery.

The committee noted that Khyber Pakhtunkhwa had reported 227 encroachment points, of which imagery had been obtained for only 18 locations, while Punjab had reported 2,737 encroachment points. WAPDA informed that provincial authorities are actively removing encroachments through district administrations. Chairman Jam Saifullah Khan directed that the next meeting be dedicated to using satellite and other advanced technologies for flood management.

Federal Flood Commission Staffing and Dam Safety Bill

The committee reviewed the staffing position in the Federal Flood Commission and was informed that a request for a No Objection Certificate (NOC) to fill vacant posts is pending with the Establishment Division. Taking serious notice, the committee directed the Establishment Division to expedite the NOC given the commission’s critical role during the ongoing flood season.

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The committee was further informed that the draft Dam Safety Council Bill had been finalized and would soon be submitted to the Ministry of Water Resources. The committee observed that dam safety is currently managed through executive arrangements rather than a dedicated legal framework.

Provincial Groundwater Challenges

During the meeting, Senator Muhammad Aslam Abro raised concerns regarding encroachments along the River Ravi. Punjab irrigation authorities informed the committee that no critical encroachments currently exist, but the chairman directed concerned authorities to submit complete and verified information, and if necessary, provide a detailed briefing in the next meeting.

On groundwater management, Sindh irrigation authorities informed the committee that approximately 80 percent of groundwater in the province is saline and that a provincial groundwater law is under preparation. The chairman directed the Government of Sindh to provide the draft legislation to the committee. Khyber Pakhtunkhwa informed that no comprehensive groundwater assessment has yet been conducted due to the absence of piezometer installations. Balochistan officials reported that annual groundwater usage exceeds available resources, resulting in a significant deficit across 18 groundwater basins.

The committee was informed that Pakistan is among the world’s most water-stressed countries and faces an increasingly severe water crisis in the coming decades.

Nai Gaj Dam Project and PSDP Allocations

Discussing the Nai Gaj Dam Project, WAPDA informed the committee that the original contractor submitted a fake bank guarantee in 2009, causing a financial loss of approximately Rs23 billion. The contract was subsequently terminated, the contractor blacklisted, and the matter is currently pending before the Supreme Court. The committee endorsed the ministry’s position and stressed the importance of ensuring accountability while expediting completion of the project, which has the potential to irrigate approximately 28,000 acres of land.

Reviewing PSDP allocations for the current financial year, the committee expressed serious concern over the substantial shortfall in funding for both water and power projects. Members observed that inadequate allocations would adversely affect the timely completion of strategically important projects and called for enhanced financial support to the water sector.