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Cases in international courts swallow billions
['Zafar Bhutta', 'Rashid Sultan']
The Express Tribune
Power Division estimates arbitration-related expenses at Rs3.79b over two yearsPakistan's government is currently fighting several cases pertaining to the power sector in international courts and is spending billions of rupees, which sparks questions about consistency of investment policy.
Earlier, in a case related to the Reko Diq copper and gold mining project, the international court imposed a $6 billion penalty on Pakistan.
Recently, the government has approved a Rs4.3 billion grant to fight cases involving the independent power producers and K-Electric shareholders in international tribunals.
According to officials, Pakistan is currently defending high-value international arbitration cases, which involve alleged contractual breaches, regulatory interference and payment disputes.
The Power Division estimates that arbitration-related expenditures will reach Rs1.179 billion for the current financial year and Rs3.794 billion for FY 2026-27 and FY 2027-28.