WB sees progress in Pak power row

WASHINGTON, Jan 21: The end of a row between some of Pakistan's independent power producers and the government is a sign of progress, but is not enough to end a battle with international lenders, a World Bank official said yesterday, reports Reuter.

The official, who asked not to be identified, noted that the agreement between the Pakistani government and 10 power producers did not include the Hub Power Company Ltd (Hubco) HWPR. KA, one of the firms at the centre of a prolonged dispute which has affected World Bank lending.

An IMF spokesman said separately that the fund had not yet set a date for new talks with the Pakistan government, "We are working with the authorities on some technical questions before we can proceed with the programme negotiations," he said.

Pakistani Finance Minister Shauka Aziz said last month that an IMF team would arrive in January to discuss whether to release a new installment from a stalled $ 1.6 billion loan.

Both the World Bank and the International Monetary Fund have halted payments from loans to cash-strapped Pakistan, partly because of the power sector dispute, which centres on fees charged by Hubco and other power producers to state utility WAPDA.

The dispute has simmered on for years, hitting foreign investment sentiment and tarnishing Pakistan's relations with international donors.

But a senior government official told Reuters in Islamabad on Wednesday that the government had resolved the tariff row with 10 power producers and was negotiating with the remaining companies.