PAKISTAN: Hubco hit by court ruling

29 May 1998
NEWS

A three-judge bench of the Lahore High Court directed the Water and Power Development Authority (WAPDA) on 18 May to pay Rs 1.5 ($0.034) a kWh to the Hub Power Company (Hubco), about half the price agreed in the power purchase agreement signed by the former government of Benazir Bhutto.

The move followed an earlier interim court order directing the State Bank of Pakistan to prevent Hubco from transferring money abroad.

The order was made after a consumer filed a private petition against the high electricity tariff. The court was due to take the case in a second hearing by a larger bench on 25 May.

A Hubco statement confirmed the court directive. A company official said the rate fixed by the court would barely be sufficient for purchasing fuel from Pakistan State Oil (see Cover Story).

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