ISLAMABAD: The Prime Minister’s Office (PMO) has instructed the Power Division and the Attorney General for Pakistan (AGP) to take urgent and proactive measures to safeguard the government’s interests in the international arbitration initiated by M/s Halmore Power Company, sources told Business Recorder.
According to officials, the directives were issued through a formal communication by Syed Hamid Ali, Additional Secretary-II (O/B) at the PMO, following a Notice of Arbitration filed by Mian Karim-ud-Din, owner of the 225MW Halmore Power Company, before the London Court of International Arbitration (LCIA).
The case was formally initiated on October 8, 2025, under the UK-Pakistan Bilateral Investment Treaty (BIT). The claimant alleges that Pakistan’s actions have adversely affected his investment in Halmore Power Generation Company. While the claim amount has not been finalized, it is estimated at around USD 80 million.
The claimant is seeking declaratory relief for alleged treaty violations, injunctive measures to prevent further breaches, and compensation with interest and legal costs. The arbitration will proceed under the UNCITRAL Arbitration Rules 2021, which require Pakistan to file a formal response to the notice by November 8, 2025.
In preparation, the government must develop a detailed factual and legal response, supported by documentary evidence and witness statements.
Sources revealed that Mian Karim-ud-Din has engaged Gaillard Banifatemi Shelbaya, a renowned international law firm specializing in investor-state disputes. The case will be led by Yas Banifatemi, a globally recognized expert in international arbitration and investment treaty law.
Given the urgency, a high-level inter-ministerial meeting agreed on a coordinated action plan:
The Power Division and Task Force will assess each allegation and submit a detailed factual position by October 23, 2025.
The Office of the Attorney General will shortlist reputable international law firms and initiate the hiring process within capped fee limits.
The Power Division will finalize engagement letters and bear all associated expenses.
After reviewing the findings, a draft response to the Notice of Arbitration will be prepared for approval.According to the arbitration notice, the claimant accuses Pakistan of coercive and retaliatory actions, including efforts to forcibly renegotiate IPP contracts, apply illegitimate pressure, and intimidate company executives. The allegations also cite incidents of travel restrictions, surveillance, payment delays worth Rs6.6 billion, and parallel investigations by regulatory authorities.
The claimant argues that these actions breach Pakistan’s international obligations under the BIT — particularly the provisions guaranteeing fair and equitable treatment, full protection, and security under Article 2(2) of the treaty.
The government is now working under tight deadlines to present a strong defense and mitigate potential financial and reputational risks arising from the high-stakes arbitration.
Story by Mushtaq Ghumman
