PAKISTAN lost two international arbitration cases in quick succession over the last two months, involving more than $900 million compensation payable to local and international business firms.
In the first case, the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) awarded around $800m compensation to Karkey Karadeniz Elektrik Uretim of Turkey in a rental power case and held that Pakistan “expropriated” Karkey’s assets.
Weeks later, the London Court of International Arbitration (LCIA) asked Pakistan in its final arbitration award to pay around Rs14 billion ($135m), including a markup, to a group of nine local power producers for breaching contractual obligations.
