Karkey rental power case: Pakistan resolves $1.2bn dispute with help of Erdogan


Prime Minister Imran Khan on Monday said Pakistan Tehreek-e-Insaf (PTI) government, with the help of Turkish President Recep Tayyip Erdogan, has amicably resolved the Karkey dispute.
In a tweet, he said Pakistan saved 1.2 billion dollars penalty imposed by International Centre for Settlement of Investment Disputes.
PTI government, with the help of President Erdogan, has amicably resolved the Karkey dispute and saved Pak USD 1.2 billion penalty imposed by ICSID.
The Prime Minister congratulated the government team for doing an excellent job in achieving this.
Last month, the ruling PTI’s leader and senior lawyer, Babar Awan, had told media that the $1.2-billion sum was likely to be waived off due to backdoor negotiations between the two countries.
“International institutions, through high-level backdoor contacts, have agreed to waive off the penalty,” Awan had told reporters at a press conference. “This is very good news for Pakistan. International institutions have shown their trust in Prime Minister Imran Khan.”
Earlier, the International Centre for Settlement of Investment Disputes (ICSID), an arm of the World Bank which offers arbitration and conciliation services for governments and private foreign investors disputes, had given its decision in favour of Turkish firm Karkey Karadeniz Elektrik Uretim and imposed a fine of $1.6 billion on Pakistan.

Karkey had registered a claim with the ICSID against Pakistan in 2013 for violation of their contract of as many as $564.6 million for a period of five years, for building rental power plants in Karachi.

The contract was struck down in the Supreme Court decision by then-Cheif Justice Iftikhar Chaudhry in 2012 on a petition by Pakistan Muslim League-Nawaz leader Khawaja Asif and Faisal Saleh Hayat, which called for shutting down all rental power projects in the country.

Comments are closed.

Subscribe to Newsletter