Special Assistant to Prime Minister Muhammad Ali, in a comment to Financial Times, denied any “coercion” in negotiations with independent power producers (IPPs) following a letter signed by a group of international lenders.

On Feb 18, eight Development Finance Institutions (DFIs), which have financed power projects worth $2.7 billion in the country over the past 25 years, criticised the government’s renegotiations of wind and solar contracts in a letter, cautioning that renegotiating with IPPs in a coercive manner would undermine investor confidence and discourage future private investment.

The lenders include the World Bank’s International Finance Corporation, the Asian Development Bank, the Islamic Development Bank, and four European development finance institutions.

“We believe that renegotiating PPAs [Power Purchase Agreements] in a non-consultative manner will be detrimental to the long-term development of the sector, undermining investor........

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