International financial institutions, including the International Finance of the World Bank and the Asian Development Bank, have criticized the Pakistani government re -negotiating energy contracts, warning that this step may lead to undermining investor confidence and weakening private investment opportunities in the future, according to a report published by Bloomberg.
Warnings
On February 18, institutions sent a common message to the Pakistani government, which was seen by Bloomberg, in which it confirmed that reinstating the purchase of solar energy and wind in a non -consultative manner may harm the long -term development of the sector.
The letter indicated that the energy producers are “not authorized to agree to any fundamental changes in project documents without obtaining prior approval from the lending bodies.”
The letter indicated that international lenders have provided 2.7 billion dollars in the Pakistani energy sector over the past 25 years, which makes any contract changes as a blow to Pakistan’s credibility in the eyes of international investors.
Contracting contracts and army intervention
This development came after the government of Prime Minister Shahbaz Sharif agreed last January to re -negotiate the contracts concluded with 14 energy companies, which led to a savings of 1.4 trillion rupee ($ 5 billion).
The government confirmed that it is holding talks with about 100 additional energy companies to amend contracts, with the aim of reducing the burdens of payments, and also indicated the role of the Pakistani army in these talks.
Bloomberg quoted informed sources as saying that the heads of companies that owe energy projects and executives were summoned several times to the army offices in Islamabad and Crachi, where they were asked to agree to reduce the payments due to them in exchange for generating electricity. These sources were not allowed to disclose their identity due to the sensitivity of the topic.
The role of the army in negotiations
At a press conference held last November, Pakistani Energy Minister Owais Lakari expressed his thanks to the Chief of Staff of the Army General Assem Mounir for his role in the success of re -negotiations on contracts. “The support provided by the army was necessary to achieve these amendments.”
It is noteworthy that the Pakistani army ruled the country directly or indirectly in most of its modern history, and maintains great influence in important political and economic decisions.
The Pakistani Army Media Department, the Asian Development Bank, or the International Finance Corporation has not issued any official comment on the case so far.
In a related context, Pakistan is in separate talks with China to reschedule the debt payments due to the energy stations that China established in the country within the belt and road initiative.
