{
  "id": 929716,
  "title": "State vs foreign investors: Govt approves TSG for legal, arbitration expenses",
  "url": "https://urgent.news/2026/08/15/state-vs-foreign-investors-govt-approves-tsg-for-legal-arbitration",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-15T01:45:45.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40434931/state-vs-foreign-investors-govt-approves-tsg-for-legal-arbitration-expenses"
  },
  "original_language": "en",
  "account": "Islamabad has approved a Technical Supplementary Grant (TSG) of Rs4.327 billion to cover legal and arbitration costs in disputes between the Government of Pakistan (GoP) and international investors, as reported by Business Recorder. Key ongoing litigations involve M/s Karim-ud-Din (Halmore Power), M/s Star Hydropower Limited (SHPL), and K-Electric shareholders, Abdul Aziz Hamad Aljomaih (Saudi Arabia) and Combined National Industries Fielding (Kuwait). The Power Division outlined the need for legal counsel under Standard Operating Procedures (SOPs) to ensure timely payments to arbitration forums like the London Court of International Arbitration (LCIA) and Permanent Court of Arbitration (PCA). Notably, in the Halmore Power case, investor-state arbitration under the UK-Pakistan BIT has claimed approximately USD 80 million due to discriminatory and coercive renegotiation. The ECC approved the proposal, but some entities, including the Power Division and Finance Division, disagreed with the allocation, arguing that the arbitrations should be borne by project participants (PPIB and CPPA-G) or that costs could be shared jointly. The ECC's decision prioritized safeguarding Pakistan’s interests, ensuring the timely payment of outstanding legal obligations to prevent additional costs from delayed representation.",
  "summary": "ISLAMABAD: The government has approved Technical Supplementary Grant (TSG) of Rs4.327 billion to meet legal and arbitration expenses in disputes involving the Government of Pakistan (GoP) and international investors, including shareholders of K-Electric, well-informed sources told Business Recorder . The main litigations/arbitrations involve M/s Karim-ud-Din (Halmore Power), M/s Star Hydropower…",
  "key_points": [
    "Pakistan approves Rs4.327 billion TSG for GoP vs foreign investor legal costs",
    "Litigations involve Karim-ud-Din, Star Hydropower, K-Electric, Saudi, Kuwait investors",
    "ECC decision prioritizes Pakistan's interests over project participants' cost sharing"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Business Standard IN",
        "title": "Govt opens one-time foreign assets' disclosure window starting Aug 16",
        "url": "https://urgent.news/2026/08/15/govt-opens-one-time-foreign-assets-disclosure-window-starting-aug-16",
        "published": "2026-08-15T06:22:35.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}