Prime Minister Imran Khan has announced that Pakistan saved from paying $1.2bn penalty as Karkey Karadeniz Elektrik Uretin (KKEU) dispute ‘amicably’ resolved.

The Premier took to twitter and congratulated the government’s negotiation team “for doing an exceptional job in achieving this success.

He said that with the help of Turkish President Recep Tayyip Erdogan, Pakistan has saved $1.2bn penalty imposed by the International Centre for Settlement of Investment Disputes (ICSID).

It should be noted that in 2008-9 Pakistan People’s Party’s government had awarded the contract to the Karkey Karadeniz Elektrik Uretin (KKEU) which was one of 12 rental power companies to ‘resolve’ the electricity crisis.

A ship had reached to Karachi port in April 2011 to provide electricity to the national grid under the PPP government’s Rental Power Plants (RPP) policy to overcome the energy crisis.

PPP government paid $9 million to the company in advance as capacity charges However, it had failed to generate 231 megawatts as was required under the agreement.