ISLAMABAD: The Public Accounts Committee (PAC) on Thursday ordered the Cabinet Division to submit a comprehensive report into Nespak’s alleged billions of rupees irregularities.

The Cabinet Division was directed to conduct multiple technical and financial inquiries and submit a report on various projects and initiatives, including losses to the government due to faulty consultancy services for the Rs43bn Neelum Jhelum Power Project.

According to Secretary Cabinet Division Kamran Ali Afzal, an inquiry at the highest level was underway on the Neelum Jhelum Power Project. “The details will be provided in the comprehensive report,” the senior official assured PAC Chairman Syed Naveed Qamar. The committee met to discuss audit objections relating to the Cabinet Division for 2024-25.

The Neelum Jhelum power generation plant was closed in July 2022 due to the collapse of its tunnel. The plant was handed over to Neelum Jhelum Hydro Power Company Pvt Ltd. The power generation plant had worked for only five to six months and again collapsed in May 2024. Since then power generation has ceased. An estimated loss of Rs42.9bn had been incurred on account of generation and restoration of the project due to poor workmanship and consultancy services provided by Nespak. Nespak has remained involved in all phases of construction of the Neelum Jhelum project, from the design to the construction supervision phase.

Audit objections highlight irregular payments, fraudulent verifications and overseas losses

Similarly, the fraudulent verification of work done by Nespak while providing consultancy and supervision services for the Federal Government Employees Housing Authority’s infrastructure development project at Park Road, Islamabad, resulted in wrong payments worth Rs1.4bn.

The Auditor General’s office informed the meeting that a Nespak engineer representative incorrectly certified the value of work done by the contractors, leading to incorrect payments for mobilisation advances and interim payment certificates (IPCs). Fake bank guarantees were submitted by the contractors, and the consultant — Nespak — wrongly verified IPC1, IPC2 and IPC3 valued at Rs1.4bn.

Kamran Ali Afzal responded that responsibility was being ascertained in this case. In another case, non-viable operations of the Nespak-Qatar subsidiary resulted in heavy losses of Rs874.4m and non-recovery of an amount worth Rs664m. The audit observed that Nespak management registered a company in Qatar in 2009. In the last audited financial statements of the company — Nespak-WLL Qatar — for the year 2022-23, it showed that it had been sustaining continuous losses and the accumulated loss had piled up to Rs1.8bn.

Published in Dawn, May 22nd, 2026