The National Electric Power Regulatory Authority (Nepra) has hired a firm to conduct a forensic audit of the 225 MW Halmore Power Company after the company refused to negotiate the terms of its Power Purchase Agreement (PPA), Business Recorder reported.Â
Halmore’s establishment followed Pakistan’s 2002 power generation policy, which sought to attract investment in the energy sector through sovereign guarantees, including a guaranteed return on equity and payments for available capacity. This led to Halmore’s construction of a 225 MW dual-fuel power plant in Sheikhupura, which started operations in 2011.
However, Halmore claims Pakistan has not honored its agreements, particularly regarding a 30-year assurance period, which was supposed to last until 2041. In 2021, Pakistan forced Halmore to accept a reduction in its guaranteed return from 15% to 12%, resulting in a loss of $52 million for the company over the remaining life of the project.
Nepra’s Deputy Director, Junaid Altaf Bhatti, referred to a letter sent to the Power Division on August 9, 2025, where Nepra had requested information regarding Halmore Power Generation Company Limited (HPGCL), but the required data had not been provided. Nepra reiterated the request for information, citing the delay in fulfilling the initial request.
In December 2024, the government received formal notification of a claim from Halmore’s owner, Karim-Ud-Din, a British national, under the Bilateral Investment Treaty (BIT) between Pakistan and the United Kingdom. The BIT aims to protect investments, and Halmore is a key entity under this agreement. Karim-Ud-Din holds a 99.9% stake in Halmore, which has been operating in Pakistan for over two decades.
Nepra’s ongoing forensic audit and the legal claim reflect the unresolved disputes between Halmore and the Pakistani government concerning these agreements and the PPA.
