Pakistan has secured a major financial win by saving over $27 million in the CASA-1000 energy project after successful negotiations in Sweden.
The breakthrough comes as the project continues to face delays due to the situation in Afghanistan.
According to a statement issued by the Ministry of Energy, key negotiations were held in Ludvika, Sweden, from March 9 to 10 between Pakistan, Tajikistan, and the construction contractor.
The talks resulted in a significant reduction in the project’s care and custody costs, marking a major financial success for Pakistan.
Contractor’s claims cut to shared $9m
Initially, the contractor had increased its care and custody claim to approximately $32.9 million for Pakistan and $22.5 million for Tajikistan. Following negotiations, both countries agreed to limit the total cost to $9 million combined until February 2028.
This means Pakistan alone has saved more than $27 million by reducing its financial burden substantially.
Agreement ensures asset protection
The agreement also ensures that critical High Voltage Direct Current (HVDC) assets will remain safe, intact, and operationally ready during this period.
Officials emphasized that maintaining the integrity and readiness of these assets remains a key priority under the revised arrangement.
As part of the deal, it was agreed that if required, a limited extension of up to three months beyond February 2028 could be granted. During any extension period, a five percent monthly increase in cost will apply.
Delays due to Afghanistan situation
The Power Division spokesperson noted that the CASA-1000 project has faced delays due to the geopolitical situation in Afghanistan.
Despite these challenges, the completion of the project’s HVDC system is now expected by September 2027.
The CASA-1000 project aims to connect Central Asia with South Asia to facilitate electricity trade, making it a key regional energy initiative.
Officials say the recent cost-saving agreement strengthens Pakistan’s position while ensuring the project continues moving forward despite regional hurdles.
