Pakistan Loses Rs 168 Billion Case Against Turkish Company

The International Centre for Settlement of Investment Disputes (ICSID) got involved in a case between Pakistan and Karkey Karadeniz Elektrik Uretim a company which is based in Istanbul, Turkey. The company in question constructs and operates rental power plants.

The ICSID, in its ruling, took a decision that went against Pakistan, imposing a fine of up to $1.6 billion (or about Rs 168 billion) as confirmed by sources of a local news channel.

What was the Dispute About?

Karkey was one of the 12 rental power companies that were awarded contracts in 2009 by the previous government to overcome the electricity crisis on an immediate basis.

The plan was, however, wrapped up after the Supreme Court canceled all those contracts in March 2012, citing their lack of transparency and the companies’ failure to produce power despite having received money in advance.

The firm says that Pakistan has violated the obligations of an investment treaty between Pakistan and Turkey, and that the breach of contracts pertaining to rental power plants is also in violation of international law.

In March of 2017, Pakistan offered to give a compensation of Rs. 700 million to Karkey as compensation through the Turkish government. They are currently in negotiations with Karkey.


  • The firm says that Pakistan has violated the obligations of an investment treaty between Pakistan and Turkey, and that the breach of contracts pertaining to rental power plants is also in violation of international law. Zardari n company should charged this amount n PPP must pay this not Nation treasury.

  • In most of the intefnational cases, Pakistan continue being a looser – simply government use incompitant lawyers, minister and corrupg staff.

  • @M Waseem Akhtar
    Because this was/is the job of ministers, their staff n compitent lawyers. There’s hardly any country where like SC of Pakistan is taking care these corrupt govenments n their ministers. SC here seems only built for these corrupt n kings without kingdoms politician. Rest of 22-crore people are awaiting their term 10-20 years n most dead waiting for justice. These politician (max 10-thousands should be shot point blank – to clean garbbage.

  • Raja rental k karnaamay.
    Koi in k*ttay k bachoun ko bolay k tum logoun ne mulk tabah krdia. Ye saara paisay awaam k tax k paisay se jaega. Raja rental aur jis jis ne in paisoun (aur commission) se faida uthaya in sab ko chowk pe latka dena chahiay nanga kar k.

    Ye bas bhutto k naam pe maangay ja rhe hain vote aur koi kaam nhi kr rhe.

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