ISLAMABAD: Talks between the government’s Task Force on Power and Wind Power Project (WPP) sponsors are reportedly stalled, as project developers are resisting pressure to revise agreements, Newzshewz has reliably learned.
The government’s negotiation team—comprising Power Minister Sardar Awais Khan Leghari, Advisor to the Prime Minister on Privatisation (formerly Special Assistant on Power) Muhammad Ali, National Coordinator Lt. General Zafar Iqbal, and representatives from CPPA-G, PPIB, SECP, and NEPRA—turned its attention to WPPs after holding talks with IPPs and GPPs. However, according to sources, the WPP sponsors have given an unfavorable response.
Despite several rounds of meetings, negotiations failed to progress according to government expectations. When the Power Division and CPPA-G were recently asked for updates, officials indicated there had been no positive developments—effectively confirming the lack of headway.
The situation escalated when several Development Finance Institutions (DFIs) issued a joint warning letter to the government, voicing serious concerns over its handling of wind power contracts.
On March 26, 2025, the Minister for Power informed the Senate Standing Committee on Power that Wind Power Plants continue to resist proposed revisions to their Power Purchase Agreements (PPAs). His statement was backed by Rihan Akhtar, CEO of CPPA-G.
The British High Commissioner to Pakistan, Ms. Janat Marirrot, also raised concerns during a meeting with the Power Minister. Separately, the World Bank’s Country Director facilitated a meeting between the minister’s team and development partners, including representatives from the IMF, ADB, IFC, KfW, the German Embassy, FCOD, UNDP, and AIIB.
In these engagements, the minister assured stakeholders that all negotiations with IPPs are being conducted transparently, fairly, and with full respect for contractual rights—including the option to walk away, pursue arbitration, or request forensic audits.
He also emphasized that a comprehensive review of power generation policies is underway, which has revealed that a least-cost policy was not followed in the past—something the government now aims to rectify.
Additionally, the Senate committee was informed that around 40 solar power projects of varying capacities also face curtailment challenges. Ends
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