'$1.2bn penalty in Karkey case likely to be waived'.

ISLAMABAD -- Senior lawyer and Pakistan Tehreek-e-Insaf (PTI) leader Babar Awan has said that the $1.2 billion penalty that Pakistan has to pay to Turkey's Karkey rental power plant is likely to be waived, a private media outlet reported. 'International institutions, through high-level backdoor contacts, have agreed to waive off the penalty. This is very good news for Pakistan,' said Awan while addressing the media on Friday. 'International institutions have shown their trust in Prime Minister Imran Khan.' Last year, the International Centre for Settlement of Investment Disputes (ICSID) had asked Pakistan to pay $760 million along with interest to Karkey Karadeniz Elektrik Uretim, the Turkish ship-based energy firm, after it filed arbitration claims against the country under the Bilateral Investment Treaty. Following the decision, Karkey went to the US, the UK and Germany for enforcing the court's ruling. Govt decides to open escrow account in Karkey rental power case Pakistan's assets abroad were at major risk of being taken over as security to enforce the international court's verdict, which could have huge financial implications for the country.

In June 2019, Islamabad had decided to open an escrow account in a European bank for depositing $50 million in partial security while seeking an extension of stay in enforcement of the international court's verdict. Karkey was one of the 12 rental power companies awarded contracts for electricity production by the Pakistan People's Partyled government in 2009. The Turkish firm...