ISLAMABAD: The government has sought complete details of working capital facilities availed by M/s Halmore Power Generation Company Limited since 2010, including the total amount sanctioned or utilised, the purpose of the facilities and particulars of any lien or security interest created, sources close to the Registrar NEPRA told Business Recorder.
The move follows directions from the Prime Minister’s Office to the Power Division and the Attorney General for Pakistan to act proactively to safeguard the government’s interests in international arbitration initiated by Halmore Power before the London Court of International Arbitration (LCIA).
In this regard, Managing Director PPIB Shah Jahan Mirza has written to several commercial banks — including UBL, Allied Bank, Meezan Bank, MCB, Samba Bank, Askari Bank, Bank Al-Habib, HBL, Dubai Islamic Bank Pakistan, and Soneri Bank — seeking records within five working days from December 22, 2025.
The request relates to the Implementation Agreement (IA) signed on October 23, 2007 between Halmore Power and the Government of Pakistan for a 225MW dual-fuel power plant at Bhikki, Punjab. Under the IA, assignment or creation of security interests without prior written consent of the government constitutes a company event of default.
According to PPIB, the company admitted to availing short-term working capital facilities and creating liens over its assets and rights without government consent, amounting to a continuous breach of the IA. A formal notice of breach was served on December 4, 2025.
Banks have also been asked to provide details of any rollover, renewal or restructuring of such facilities along with supporting documents. The government has reserved its right to pursue all legal remedies under the IA and Pakistani law.
Separately, Halmore owner Mian Karim-ud-Din has initiated investor-state arbitration against Pakistan under the UK-Pakistan Bilateral Investment Treaty, alleging treaty violations and seeking compensation estimated at around $80 million, along with interest and legal costs. The arbitration will proceed under UNCITRAL Arbitration Rules 2021.
Story by Mushtaq Ghumman
