The government has reportedly come under scrutiny from various foreign governments regarding what they describe ‘one-sided’ move to end agreement with certain Independent Power Producers (IPPs) facilitated by the energy task force, Business Recorder reported.

Notably, the German government has expressed reservations about a power company linked to former Minister of Commerce and Industries, Abdul Razak Dawood, Rousch Power Project Limited (RPPL).

Under the terms of the Negotiated Settlement Agreement (NSA) with RPPL, several key points were established:

• The Company is to transfer the Complex to the Government of Pakistan or a designated entity for a nominal fee of one USD, payable in equivalent PKR at the current exchange rate.

• The Company will receive Rs 5.5 billion as compensation for the early termination of the OFME period.

• An additional payment of Rs 2.8 billion will be made for the preservation of the Complex until the transfer occurs.

Sources reveal that Georg Klussmann, Head of Division for Pakistan at the German Federal Foreign Office, communicated concerns to Pakistan’s Embassy in Germany regarding the negotiation process with RPPL and its shareholder, Siemens.

Siemens has reportedly deemed the Settlement Agreement unacceptable in its current form but remains open to negotiating in good faith to find a resolution.

Berlin is worried that the ongoing negotiations could jeopardize future bilateral relations, emphasizing the risks this situation poses to the trust of German enterprises and investors, which could adversely affect broader Pakistan-German business relations.

The German side reiterated its concerns and requested intervention from Pakistani decision-makers. In response, Pakistan’s Charge d’Affaires in Berlin has suggested further engagement with the German side to work towards an amicable solution.

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