The federal government has sought complete details of all working capital and short-term finance facilities availed by Halmore Power Generation Company Limited over the past 15 years, as it moves to safeguard its position in an international arbitration initiated by the power producer, Business Recorder reported, citing official sources.
The dispute follows a notice of arbitration issued by the claimant, who owns the 225-megawatt Halmore Power project, and has initiated proceedings before the London Court of International Arbitration. The case relates to alleged breaches by Pakistan under the UK–Pakistan Bilateral Investment Treaty.
Earlier, the Prime Minister’s Office directed the Power Division and the Attorney General for Pakistan to take proactive steps to protect the government’s interests in the arbitration proceedings filed by Halmore’s owner, Mian Karim-ud-Din.
In this context, Managing Director of Private Power and Infrastructure Board, Shah Jahan Mirza, has written to several commercial banks seeking detailed records of all working capital facilities extended to Halmore since 2010. The letters, issued on December 22, 2025, require banks to respond within five working days.
Banks approached for information include UBL, Allied Bank Limited, Meezan Bank Limited, MCB Bank, Samba Bank Limited, Askari Bank Limited, Bank Al Habib Limited, Habib Bank Limited, Dubai Islamic Bank Pakistan Limited, and Soneri Bank Limited.
According to the PPIB, the request is linked to the Implementation Agreement signed on October 23, 2007 between Halmore Power Generation Company and the President of Pakistan, acting on behalf of the government, for the establishment of a 225MW dual-fuel power plant based on gas and high-speed diesel at Bhikki in Punjab.
The government has already issued a formal notice of continuous breach to the company on December 4, 2025. As part of its response, banks have been asked to provide details of the total amounts sanctioned and availed, the purpose of each facility, and particulars of the liens or security interests created. Where facilities were rolled over, renewed, or restructured, full documentation has also been sought.
According BR report, the arbitration was formally triggered on October 8, 2025, when Mian Karim-ud-Din served a notice of arbitration on Pakistan. While the claim has not been formally quantified, it is estimated at around $80 million. The claimant has sought declaratory relief for alleged treaty violations, injunctive relief to prevent further breaches, and compensation along with interest and legal costs.
Under the dispute resolution provisions of the bilateral investment treaty, the arbitration will proceed under the UNCITRAL Arbitration Rules 2021, which require Pakistan to submit its response within one month of receiving the notice of arbitration.
