Pakistan resolves $1.2bn Karkey dispute with Turkey.

ISLAMABAD -- The Pakistani government has resolved the Karkey power plant dispute with the help of Turkish President Recep Tayyip Erdogan, Prime Minister Imran Khan announced on Monday. In a tweet, PM Imran said the matter was resolved 'amicably' and that Pakistan had successfully saved $1.2 billion - the sum the International Centre for Settlement of Investment Disputes (ICSID) had imposed as a penalty on Islamabad. 'PTI Govt, with the help of President Erdogan, has amicably resolved the Karkey dispute and saved Pak USD 1.2 billion penalty imposed by ICSID,' the premier wrote. Last month, Pakistan Tehreek-e-Insaf (PTI) leader and senior lawyer Babar Awan had told media that the $1.2 billion sum was likely to be waived off due to backdoor negotiations between the two countries. 'International institutions, through high-level backdoor contacts, have agreed to waive off the penalty,' Awan had told reporters at a press conference. 'This is very good news for Pakistan. International institutions have shown their trust in Prime Minister Imran Khan.'

The ICSID - an arm of the World Bank that offers arbitration and conciliation services for disputes between governments and private foreign investors - had slapped a penalty worth $760 million plus interest to the Turkish ship-based energy firm, Karkey Karadeniz Elektrik Uretim, following...