An open letter by Engineer Arshad H Abbasi
This open letter urges Pakistan’s leadership and the United Nations to ensure transparency, accountability, and human rights protections in the country’s troubled power sector. Highlighting two major international investment disputes, mounting public suffering from soaring electricity costs, and systemic regulatory failures, the letter calls for independent oversight, full disclosure of IPP payments, and urgent reforms to restore trust, uphold treaty obligations, and safeguard Pakistan’s economic and social stability.
His Excellency Mr. Muhammad Shehbaz Sharif, Prime Minister of the Islamic Republic of Pakistan
His Excellency Mr. António Guterres, Secretary-General of the United Nations
Cc:
Mr Awais Ahmad Khan Leghari, Federal Minister, Ministry of Energy (Power Division)
Waseem Mukhtar, Chairman NEPRA
Dr Muhammad Fakhre Alam Irfan, Federal Secretary of the Ministry of Energy (Power Division)
Ms Ghada Waly – Director-General, United Nations Office at Vienna (UNOV) / United Nations Office on Drugs and Crime (UNODC), Vienna
Mr Volker Türk – United Nations High Commissioner for Human Rights (UNHCHR), Geneva
Mr António Guterres – Secretary-General, United Nations, New York
Mr Simon Stiell – Executive Secretary, United Nations Framework Convention on Climate Change (UNFCCC), Bonn
Mr Raja Riffat Mukhtar. DG-FIA Islamabad
Lt. Gen. (retd) Nazir Ahmed Butt-Chairman NAB-Islamabad
Subject: Energy, Transparency, and Human Rights: A Call for Accountability in Pakistan’s Power Sector
Your Excellencies
I write this open letter as an independent Pakistani Energy Expert with over thirty-six years of professional experience in energy policy and international contract management. I currently serve on the Board of the Centre for Research and Security Studies (CRSS), Islamabad, and have previously advised multilateral institutions, including the World Bank, on matters of energy and governance.
With profound concern, I seek to become an independent and interested party in two pending investment disputes of grave national importance — both carrying serious implications for Pakistan’s fiscal stability, international credibility, and treaty compliance.
The Human Impact of the Power Sector Crisis
Before addressing these disputes, I must record my deepest anguish over the devastating human consequences of Pakistan’s power sector mismanagement.
Exorbitant electricity tariffs have pushed millions of households to the brink of despair. In many tragic instances, ordinary citizens — unable to bear the crushing burden of electricity bills — have been driven to suicide. The power sector, once a symbol of progress, has become a source of human suffering and social breakdown.
For households, soaring electricity costs have eroded purchasing power, forced painful compromises on basic needs such as food, health, and education, and fueled inflation across every sector of the economy. For businesses — particularly small industries and exporters — high energy prices have increased production costs, reduced competitiveness, discouraged investment, and worsened Pakistan’s balance-of-payments crisis.
This is no longer just an economic issue; it is a human rights emergency that threatens the survival of families and the stability of the nation itself. Pakistan’s energy sector must be made transparent, accountable, and humane.
In this context, all circular debt payments made to Independent Power Producers (IPPs) must be made publicly transparent. The people of Pakistan — who ultimately bear the cost — have a fundamental right to know where their money has gone. Full disclosure is not a privilege; it is a moral and legal obligation.
It is precisely for these reasons that I am appealing to the United Nations, as this crisis is not just a question of governance — it is a question of human survival and national security in a state that possesses nuclear weapons.
- The K-Electric Dispute under the OIC Investment Agreement
On 20 October 2025, a consortium comprising Al Jomaih Group (Saudi Arabia) and Denham Investments Limited (Kuwait) served a Notice of Dispute to the Government of Pakistan, the Attorney General’s Office, and the Special Investment Facilitation Council (SIFC).
The claim, amounting to USD 2 billion, alleges violations of Pakistan’s obligations under the Organisation of Islamic Cooperation (OIC) Investment Agreement, which guarantees fair treatment and protection of member-state investments.
Represented by Steptoe International LLP (UK), the investors allege:
- Obstruction of legitimate business operations;
- Unjustified delays in regulatory and tariff approvals; and
- Failure to protect foreign investments from unlawful interference.
These alleged actions led to the depreciation of K-Electric’s valuation, higher debt servicing costs, and reputational harm following the stalled sale to Shanghai Electric Power (China).
If escalated to arbitration, this would mark the first-ever claim filed under the OIC Investment Agreement against Pakistan, setting a precedent with far-reaching implications for future Gulf and OIC-based investments.
2. The Halmore Power Company Arbitration before the LCIA
A second, concurrent dispute has been initiated by Mr. Mian Karim-ud-Din, owner of the 225 MW Halmore Power Company, through a Notice of Arbitration dated 8 October 2025 under the UK–Pakistan Bilateral Investment Treaty (BIT).
The arbitration, before the London Court of International Arbitration (LCIA) under the UNCITRAL Arbitration Rules (2021), alleges that Pakistan violated:
- Fair and Equitable Treatment (FET) and Full Protection and Security (Article 2(2) of the BIT);
- Obligations to ensure the management, maintenance, and enjoyment of foreign investments without coercion or interference; and
- Fundamental due process principles under international law.
Represented by Gaillard Banifatemi Shelbaya Disputes (GBS), the claimant accuses the Government of coercive tactics, including intimidation, travel restrictions, and the withholding of legitimate payments totalling PKR 6.6 billion.
NEPRA’s engagement of a private audit firm shows how inept the power regulator is — despite relevant records being with the NEPRA, Central Power Purchasing Agency (CPPA) and NTDC— raises serious questions about procedural integrity and potential conflicts of interest.
Given Pakistan’s past failures in international arbitration (notably under ICSID and LCIA), this matter demands specialized legal, technical, and environmental expertise — not bureaucratic improvisation.
Institutional Concerns and Public Trust
With the highest respect, I must express my complete lack of confidence in the capabilities and impartiality of NEPRA, CPPA, and certain officials within the Ministry of Power. Their recurring mismanagement has cost Pakistan dearly in past arbitrations, exposing the nation to massive financial losses.
Entrusting these same entities again would be tantamount to institutional self-sabotage. As Your Excellency has observed, inefficiency and corruption have turned Pakistan into a “global begging bowl.” That is not rhetoric; it is the tragic truth embodied in every failed energy contract and arbitration award.
Alignment with International Law and Climate Commitments
Both K-Electric and Halmore operate fossil-fuel–based generation fleets, which directly contradict Pakistan’s commitments under the Paris Agreement (2015) and the UN Framework Convention on Climate Change (UNFCCC).
These disputes therefore intersect with Pakistan’s environmental and human rights obligations, including the duty to promote sustainable, transparent, and equitable energy governance.
Under international law — including the UNCITRAL Model Law (2006) and the New York Convention (1958) — Pakistan must act in good faith, uphold fair and equitable treatment, and avoid arbitrary conduct that undermines legitimate investor and citizen expectations alike.
Requests for Immediate Action
- Establish a High-Level Joint Legal and Technical Committee, reporting directly to the Prime Minister, composed of independent experts in energy economics, environmental law, and international arbitration, including representatives of the different organs of the United Nations.
- Ensure full public transparency of all forensic and audit proceedings initiated by NEPRA in these cases, and provide access to relevant documents for independent expert and public review.
- Disclose all circular debt payments to IPPs and publish the full record for public scrutiny to restore national trust during the last 20 years.
- Engage UN oversight, through the UNODC and UNHCHR, to ensure compliance with Pakistan’s international commitments on anti-corruption, human rights, and sustainable development.
Final Appeal
Your Excellency,
These are not routine contractual disputes — they are defining tests of Pakistan’s moral and institutional strength. Losing them would not only deepen our fiscal crisis and deter investors but also confirm global perceptions of Pakistan as a state incapable of honoring its word or protecting its people.
As a lifelong energy professional and advocate for the rule of law, I am compelled to act in accordance with the fundamental principles of transparency, accountability, and the public’s right to information, as enshrined under Articles 19 and 19A of the Constitution of Pakistan, and reinforced by international human rights instruments — including Article 19 of the Universal Declaration of Human Rights (UDHR) and Article 10 of the United Nations Convention against Corruption (UNCAC), to which Pakistan is a State Party. These provisions collectively affirm that citizens have an inalienable right to access information relating to the conduct of public affairs and the use of national resources.
Accordingly, I intend to independently evaluate and publicly disclose the Government’s management of the two ongoing investment disputes in the energy sector, applying international best practices in transparency and governance. I am CC’ing this letter to numerous Pakistani professionals and civil society leaders because our collective vigilance is vital. It is imperative that all payments to Independent Power Producers (IPPs) and all revisions of Power Purchase Agreements (PPAs) be made public without delay. The Ministry of Power, NEPRA, and CPPA — institutions long criticized for opacity and administrative discretion — must now operate within the framework of international law and Pakistan’s treaty obligations. Transparency is not optional; it is a legal and moral duty owed to the 250 million citizens of Pakistan and to the international community watching our commitment to justice, integrity, and accountability.
The energy sector’s chronic opacity has already reduced Pakistan, in the words of Prime Minister Shahbaz Sharif himself, to a “GLOBAL BEGGING BOWL.” The time has come to reverse this humiliation through openness, reform, and fearless truth.
This is a moment to demonstrate that Pakistan can be governed not by bureaucracy or self-interest, but by wisdom, integrity, and humanity.
Cc:
Mr Awais Ahmad Khan Leghari, Federal Minister, Ministry of Energy (Power Division)
Waseem Mukhtar, Chairman NEPRA
Dr Muhammad Fakhre Alam Irfan, Federal Secretary of the Ministry of Energy (Power Division)
Ms Ghada Waly – Director-General, United Nations Office at Vienna (UNOV) / United Nations Office on Drugs and Crime (UNODC), Vienna
Mr Volker Türk – United Nations High Commissioner for Human Rights (UNHCHR), Geneva
Mr António Guterres – Secretary-General, United Nations, New York
Mr Simon Stiell – Executive Secretary, United Nations Framework Convention on Climate Change (UNFCCC), Bonn
Mr Raja Riffat Mukhtar. DG-FIA Islamabad
Lt. Gen. (retd) Nazir Ahmed Butt-Chairman NAB-Islamabad
Respectfully submitted,
Engineer Arshad H Abbasi
Energy Expert & Policy Analyst ahabasi@gmail.com, +92-333-5144405
Board Member, Centre for Research and Security Studies (CRSS), Islamabad
