Govt Seeks Banks’ Financing Details of Halmore Power Amid Arbitration Case

The government has sought complete details of all working capital and short-term financing facilities availed by Halmore Power Generation Company Limited since 2010, as it moves to protect its interests amid international arbitration proceedings, sources close to NEPRA told Business Recorder. The Prime Minister’s Office has directed the Power Division and the Attorney General for Pakistan to act proactively in response to arbitration initiated by Halmore’s owner, Mian Karim-ud-Din, before the London Court of International Arbitration.

In this regard, the Managing Director of the Private Power and Infrastructure Board (PPIB) has written to multiple commercial banks, seeking comprehensive records of financing facilities, including sanctioned amounts, purposes, liens, security interests, and any restructuring or rollover arrangements, within five working days. The request relates to an alleged breach of the 2007 Implementation Agreement, under which Halmore reportedly created security interests without prior written consent of the Government of Pakistan.

According to PPIB, such actions constitute a Company Event of Default under the agreement, prompting the government to issue a notice of continuous breach in December 2025. The arbitration, based on alleged violations of the UK-Pakistan Bilateral Investment Treaty, carries an estimated claim of around USD 80 million. The government has stated it reserves all legal rights under Pakistani law and the Implementation Agreement and will keep the Pakistan Stock Exchange informed of further material developments.