PakAl
Senior Member
- Sep 27, 2007
- 5,526
- 6,583
That’s incorrect. The government is paying for unused electricity and have committed in writing that in case of failure to make a payment, the government can be sued in the International court outside Pakistan.
The terms for each IPPs varies as we have about 42 IPPs in Pakistan alongside many other partners in the energy sector
I've been doing some reading, the Benazir government gave sovereign guarantees to the IPPs in 1994. I couldn't find any information on when the contracts expire or if we are stuck in this for ever? How can a government make agreements like this, even if they were desperate, 10 year agreements would have suited them or create a break clause stating Pakistan has to pay a certain amount of compensation to dissolve the contract. It's like giving navy base to some nation for ever or make agreements on never to explore natural resources in your own nation for economic investments. I started to wonder what agreements we made with the British Empire for our freedom in 1947?