ISLAMABAD: Germany has appealed to Pakistan’s Chief of Army Staff, General Asim Munir, for assistance in revising a settlement over the closure of a 450MW power plant involving German investor Siemens, who reportedly felt pressured to agree to the deal. The German Ambassador to Pakistan, Alfred Grannas, reached out to General Munir, seeking an amicable solution to safeguard German investments, according to Ministry of Energy sources.
Siemens holds a 26% stake in Rousch Pakistan Power Limited, one of five plants whose contracts were terminated this month in an effort to reduce electricity costs. Despite agreeing to the closure, Germany has set forth six conditions that must be met for the contract to be formally ended. These include guaranteed fund transfers by Pakistan’s Ministry of Finance and the State Bank of Pakistan, resolution of a sales tax dispute, and indemnification for board members. Siemens also seeks Rs3.1 billion in unpaid dividends as a gesture of good faith.
The German ambassador emphasized Siemens’ long-standing partnership in Pakistan’s power sector since the 1990s and highlighted the impact of unresolved issues on Pakistan-Germany business relations. With Germany as Pakistan’s largest bilateral trading partner, he urged the COAS to address the matter, stressing that the current terms fall significantly short of Siemens’ expectations and might deter future foreign investment.
Story by Shahbaz Rana
