The government has reportedly begun receiving troubling messages from various foreign governments regarding “one-sided” agreements with certain Independent Power Producers (IPPs) through the energy task force, Business Recorder reported.

According to these sources, the German government has expressed concerns about M/s Rousch Power Project Limited (RPPL), a power company owned by the family of former Minister of Commerce and Industries Abdul Razak Dawood.

Under the Negotiated Settlement Agreement (NSA) with RPPL, several key points were established: (i) As part of a BOOT arrangement, the company will transfer the Complex to the Government of Pakistan or its designated entity for just one USD, payable in equivalent PKR at the current exchange rate; (ii) the company will receive Rs 5.5 billion for the early termination of the OFME period; and (iii) it will be compensated Rs 2.8 billion for maintaining the Complex until the transfer occurs.

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

Siemens considers the Settlement Agreement unacceptable to foreign investors in its current form but is open to negotiating in good faith to find a resolution.

“Berlin is worried that this prolonged issue could negatively impact future bilateral relations. Germany recognizes the potential risk this situation poses to the trust of German businesses and investors, thereby affecting broader Pakistan-German economic ties,” the sources added.

The German government reiterated its previous concerns regarding the negotiations with RPPL and requested intervention from key decision-makers. In response, Pakistan’s Charge d’Affaires in Berlin has suggested further discussions with the German side to reach an amicable resolution.