UK raises $80 million Halmore arbitration dispute with Pakistan in meeting with power minister

The United Kingdom has raised the issue of Halmore Power Company’s ongoing dispute with the government of Pakistan, as the case proceeds towards international arbitration under a bilateral investment treaty, Business Recorder reported. 

The matter was discussed during a meeting between Federal Minister for Power Sardar Awais Ahmad Khan Leghari and Sam Waldock, Development Director at the British High Commission, which also covered bilateral cooperation and regional developments.

According to the Power Division, investment-related concerns were highlighted during the meeting, with the minister assuring that Pakistan would facilitate investors to improve the overall investment climate.

The dispute relates to an arbitration initiated by Halmore Power Company’s owner before the London Court of International Arbitration, alleging violations of the UK–Pakistan Bilateral Investment Treaty.

The claim, estimated at around $80 million, involves allegations that Pakistan’s actions adversely affected the company’s investment, with the claimant seeking compensation, injunctive relief, and declarations of treaty breaches.

Under the treaty’s dispute resolution framework, proceedings are being conducted under the UNCITRAL Arbitration Rules 2021, with Pakistan required to submit its response within the stipulated timeline.

Earlier, the Prime Minister’s Office directed the Power Division and the Attorney General to actively defend the government’s position in the case.

Separately, both sides discussed regional developments, with the minister highlighting Pakistan’s role in facilitating ceasefire efforts and diplomatic engagement in the region.

The UK side acknowledged Pakistan’s handling of the situation and reaffirmed the importance of continued engagement, particularly in maintaining macroeconomic stability.

The minister also appreciated the United Kingdom’s cooperation through its development programmes, describing it as a key component of bilateral relations.