The World Bank’s private finance arm has criticised Pakistan’s army-led renegotiation of wind and solar power contracts in a letter co-signed by seven other international development institutions that have financed projects in the country.
The Financial Times last month reported Pakistan’s military and intelligence agencies were heavily involved in talks aimed at changing the terms of renewable energy agreements signed with power companies a decade ago.
“Preserving the sanctity of contracts signed by the government and honouring its contractual commitments are central pillars of building investor confidence in . . . Pakistan,” the International Finance Corp and other lenders wrote in the letter, dated February 18 and seen by the FT.
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