Reko Diq case: Pakistan to move international court against damages

ISLAMABAD: Pakistan announced on Monday that it would go into appeal and challenge multi-billion dollar damages in the Reko Diq case in international court.

International court had imposed $1.2 billion damages in Karkey rental power case and $6.2 billion damages in Reko Diq case. Pakistan assets could be seized following damages imposed on Pakistan, Minister for Energy Omar Ayub Khan said this while addressing a news conference here.

The minister said Pakistan would go into appeal against these decisions awarded against Pakistan. He blamed previous governments for taking unwise decision that resulted in such damages against Pakistan.

Besides, the country Pakistan faced a burden of Rs24 trillion debt due to failed policies of the previous governments and added that people should know about those behind such heavy loans.

Independent Power Producers (IPPs) and other parties went into international court against Pakistani government due to failed policies of previous governments. He said that assets of Pakistan abroad could be seized if damages were not paid.

Responding to question regarding circular debt, he said that 88 per cent energy payments were being made to power produces and claimed to end entire circular debt in 2020. There had been load-shedding when Pakistan Tehreek-e-Insaf (PTI) government came into power. However, he said that all feeders were operational now due to improvement in electricity supply and there is zero load-shedding in the country.

Regarding payment of Rs1.5 billion to Rosch Power Plant on account of capacity charges, Khan said that Economic Coordination Committee (ECC) during the tenure of Pakistan Muslim League-Nawaz (PML-N) had approved it in 2017. He said that past government had also decided to run this power plant on LNG instead of indigenous gas. He said that this plant was being run in line with merit order instead of ‘must run’.

Khan said that there was no money to pay to IPPs during past government. He said that Rosch Power had preferred local arbitrator whereas the remaining eleven companies had gone to an international arbitrator. He said that the government had to pay Rs14 to Rs15 billion to these companies due to award given in favour of these IPPs in an international court. He said that the government was making out of court settlement with the power companies to stop them from going into international court.

About Gas Infrastructure Development Cess (GIDC), he said the cabinet had taken a decision to conduct a forensic audit of fertilizer plants. However, when questions were raised, the government decided to refer a matter to the Supreme Court for resolution. He said the government would spend money collected on account of GIDC on the development of gas infrastructure if the decision is given in favour of the government.

To a question, he ruled out the rumours about Prime Minister Imran Khan minus formula and said Imran Khan is the leader of the party and would remain in government. He added that he would also come into power for another five years after the next election.

Originally published in The News