ISLAMABAD : The shocks of written notification of claim sent by the Legal Counsel of the owner of Halmore Power Company, . Karim-ud-Din, is now being felt at the Ministry of Foreign Affairs (MoFA), sources told Newzshewz.
According to MoFA, Pakistan Mission in Paris has received notification of a claim from Mr. Karim-ud-Din concerning alleged breach of international obligations under the BIT filed through a Paris based Counsel. The notification is also addressed to the offices of the Prime Minister, Deputy Prime Minister/Foreign Minister, Minister for Energy, Attorney General and SAPM on Energy.
MoFA is of the view that the government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Pakistan for the Promotion and Protection of Investments signed an agreement on 30th November 1994. The desire was to create favorable conditions for greater investment by nationals and companies of one State in the territory of the other State.
Under this agreement, Article 8 relates to Settlement of Disputes between an Investor and a Host State. According to Article 8 of the Agreement, when between a national or company of one Contracting Party and the other Contracting Party concerning an obligation of the letter under the Agreement in relation to an investment of the former which have not been amicably settled shall, after a period of three months from written notification of a claim, be submitted to international arbitration if the national or company concerned so wishes.
MoFA has further stated that where the dispute is referred to international arbitration the national or company and the Contracting Party concerned in the dispute may agree to refer the dispute either to the International Centre for the Settlement of Investment Disputes or the Court of Arbitration of the International Chamber of Commerce or an international arbitrator or ad-hoc arbitration tribunal to be appointed by a special agreement or established under the Arbitration Rules of the United Nations Commission on International Trade Law.
However, if after a period of three months from written notification of the claim there is no agreement to one of the above alternative procedures, the dispute shall at the request in writing of the national or company concerned be submitted to arbitration under the Arbitration Rules of the United Nations Commission on International Trade Law as then in force Mr. Karim-ud-Din’s counsel, Yes Banefatemi has presented a written notification of a claim pursuant to Article 8 of the Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Islamic Republic of Pakistan.
” Claiming breaches by Pakistan of its international obligations under BIT, Karim-ud-Din, has requested that settlement discussions be under taken under Article 8 (1) of the Agreement. The notice further states that if this dispute cannot be resolved amicably within three months from the date of this written notification, Karim-ud-Din reserves the right to submit his claim to international arbitration under Article 8(2),” MoFA said, requesting Ministry of Commerce, Board of Investment and other relevant stakeholders to examine the notification and take appropriate action.
According to the notification, on November 11, 2024, Halmore’s CEO was summoned and threatened with detention unless Mr. Karim-Ud-Din—who resides in London—authorized the acceptance of pre-determined terms that could potentially lead to Halmore’s bankruptcy. Although the CEO was eventually released, Pakistan has continued to exert pressure on Mr. Karim-Ud-Din to compromise on his rights, placing Halmore’s future, as well as the security of its personnel, in immediate danger.
The notice also highlights that Pakistan’s actions are not only coercive but discriminatory. While some privately owned IPPs, including Halmore, have been targeted, state-owned energy producers and other IPPs owned by Chinese investors have not faced the same treatment.
“If this dispute cannot be resolved amicably within three months from the date of this written notification, Karim-Ud-Din reserves his right to submit his claim to international arbitration under Article 8(2) of the BIT to ensure that his legal rights are fully protected and enforced. This letter should be considered a formal notice of claim for that purpose.”
The government’s Task Force on Energy, headed by Minister for Power, Sardar Awais Leghari and comprising, SAPM on Power Muhammad Ali, National Coordinator, Lt. General, Muhammad Zafar Iqbal, Chairman NEPRA, Waseem Mukhtar, CEO, CPPA-G, Rihan Akhtar and other officials from NEPRA, CPPA-G and SECP are engaged with the IPPs. Ends
