Insiders claim that Prime Minister Imran Khan during his visit to Turkey took up the issue of Karkey with Turkish leadership but the reply was not positive.
Turkish authorities also raised concerns relating to investment climate in Pakistan, citing two cases, ie, 56.4 MW Zorlu Energy and M/s Karkey's 232 MW ship mounted rental power project. "Pakistan's defeat in Karkey case in the ICSID in London has placed an unprecedented amount of pressure on the government," said an official of Power Division after spending about Rs 1 billion in contesting the case. The Power Division has sought $ 1.35 million from Finance Ministry to contest the case against Turkish firm M/s Karkey, saying that Pakistan's assets abroad are potentially under threat of being attached (or lien being created) that will have huge financial implications. M/s Karkey, which set up a 232MW ship mounted rental power project pursuant to rental power policy 2008, announced by the government of Pakistan (GoP) entered into rental services contract (RSC) on April 23, 2009 for generation of electric power with the Lakhra Power Generation Company Limited (LPGCL).
During a meeting between President Dr Arif Alvi in October 2018 with the Turkish President Recep Tayyip Erdogan the latter highlighted the Karkey case and "problems" faced by M/s Zorlu Solar Pakistan (Pvt) Ltd operating in Pakistan. The management of M/s Zorlu, President Alvi was informed, was concerned over the change in tariff policy by the Government of Pakistan which changed the cost of its initial investments as per its contractual obligations.
When contacted, an official who had also visited Turkey a couple of times to sort out the issue with Karkey, told this scribe that Pakistan has not sought Turkish political leadership's help in this case, saying that Pakistan would fight the case in court.
However, when asked if Pakistan has offered an out-of-court settlement proposal during the visit of the Prime Minister, the official did not respond.
