Pakistan is receiving concerning feedback from foreign governments regarding recent agreements with Independent Power Producers (IPPs), with Germany expressing particular reservations about the Negotiated Settlement Agreement (NSA) with Rousch Power Project Limited (RPPL).

Under the NSA, RPPL is set to transfer its energy complex to Pakistan for a nominal sum, payable in local currency.

According to a report by Business Recorder, the agreement includes a payment of Rs. 5.5 billion to RPPL for the early termination of its operations during the Out-of-Market Expenses (OFME) period and an additional Rs. 2.8 billion to maintain the facility until its official transfer.

Georg Klussmann, Head of Division for Pakistan at Germany’s Federal Foreign Office, has communicated to Pakistan’s embassy in Germany that the German government finds the NSA concerning. Klussmann noted that Siemens, a shareholder in RPPL, is dissatisfied with the current settlement, suggesting that there is potential for further negotiations to reach a more mutually agreeable resolution.

Germany has cautioned that the prolonged nature of these negotiations could affect future bilateral relations and diminish the trust of German businesses and investors in Pakistan.

In response, Pakistan’s Charge d’Affaires in Berlin has advocated for continued dialogue with German officials to explore an amicable solution, aiming to address the concerns and maintain strong bilateral ties.