ISLAMABAD: Pakistan on Monday assured major international lenders, including the International Monetary Fund, World Bank, and Asian Development Bank, that independent power producers (IPPs) unwilling to renegotiate contracts could opt for either a forensic audit or international arbitration, following recent protests over ‘forced contract revisions’.

Power Minister Awais Ahmad Khan Leghari also informed the lenders during a meeting that the government would soon ‘rationalise’ solar net metering while also offering cheaper electricity to select consumers for incremental consumption at ‘marginal cost’ to boost faltering demand.

A couple of weeks ago, a group of international lenders, excluding the IMF, sent a joint letter to the government expressing concern over what they described as non-consultative revisions to IPP contracts, in which they had invested billions of dollars. They warned that such actions could negatively impact the investment climate at a time when Pakistan is seeking further investment in the power sector’s transmission network and privatisation programme.

Minister says........

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