Prime Minister Imran Khan announced that with the help of Turkish President Recep Tayyip Erdogan, the government has successfully resolved the power plant company ‘Karkey’ dispute.
In his message on Twitter, the Prime Minister said that the government resolved the Turkish company ‘Karkey’ dispute and saved $ 1.2 billion in fines imposed by the International Center for Settlement of Investment Disputes (ICSID) on Pakistan.
I want to congratulate the government's negotiating team for doing an excellent job in achieving this. https://t.co/B03qgr1gDv
— Imran Khan (@ImranKhanPTI) November 4, 2019
Prime Minister Imran Khan also congratulated the government’s negotiating team on this success.
It is to be noted that in the PPP government there was an agreement with the Turkish government regarding the production of electricity, a subsidiary of the Ministry of Water and Power, Pakistan Electric Company (Pepco) and the Turkish company ‘Karkey’.
The deal was worth $ 566 million, a rental power plant was set up in Karachi under the agreement and it had to provide 231 megawatts of electricity to Pepco since 2009 but failed to provide the car’s fixed electricity while it was still in power. It was also getting expensive for Pakistan.
According to the agreement, the government paid $ 94 million in monthly rent to the Turkish company.
At that time, PML-Q leader Faisal Saleh Hayat and PML-N leader Khawaja Asif filed a petition in the Supreme Court against the agreement, which the court ruled did not maintain transparency with the Turkish company in the rental power project. So the contract was canceled.
The deal was guaranteed by the government of Pakistan, whereby the Turkish company approached the World Arbitration Court on the termination of the deal and claimed $ 2 billion and 10 million in damages to Pakistan.
Pakistan fought the case in arbitration court, but in September 2017 the verdict came up against it, in which the World Bank’s International Center for Settlement of Investment Disputes imposed heavy fines on Pakistan.