ISLAMABAD: Prime Minister Imran Khan on Monday said that Pakistan Tehreek-e-Insaf (PTI) government has resolved the Karkey dispute with the help of Turkish President Erdogan, ARY News reported.
The premier took to Twitter saying, “PTI govt, with the help of President Erdogan, has amicably resolved the Karkey dispute and saved Pak USD 1.2 billion penalties imposed by ICSID.”
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 also congratulated the government’s negotiating team for doing an excellent job in resolving the Karkey dispute with Turkey.
“I want to congratulate the government’s negotiating team for doing an excellent job in achieving this,” wrote PM Imran.
Karkey Rental power dispute
Last year, the International Centre for Settlement of Investment Disputes (ICSID) had asked Pakistan to pay $760 million along with interest to Karkey Karadeniz Elektrik Uretim, the Turkish ship-based energy firm, after it filed arbitration claims against the country under the Bilateral Investment Treaty.
Karkey was one of the 12 rental power companies awarded contracts for electricity production by the Pakistan Peoples Party-led government in 2009.
Read More: Court extends suspect’s physical remand in Karkey rental power case
The PTI government initiated review proceedings in the ICSID over the earlier decision in Karkey Karadeniz versus Pakistan case.
Pakistan gathered fresh evidence of graft in the rental power project (RPP) contract by the Turkish company, after which the ICSID suspended its earlier decision.
Turkish company Karkey had obtained a contract from the government of Pakistan for the supply of electricity under its policy of the Rental Power Projects (RPPs) that had been launched to meet the shortfall of electricity.
The Supreme Court subsequently declared all RPPs contract void and directed the National Accountability Bureau to investigate the matter.
After the court decision Karkey initiated proceedings in ICSID under Pakistan Turkey Bilateral Investment Treaty in January 2013.
Earlier in May 2019, Laeeq Ahmed Sheikh was arrested over his alleged involvement in corruption, corrupt practices and misuse of authority in the award of Karkey Rental Power Projects (RPPs) contract to M/s Karkey Karandenis Electric Uratim of Turkey.
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