ISLAMABAD: The International Centre for Settlement of Investment Disputes (ICSID), an arm of the World Bank which offers arbitration and conciliation services for governments and private foreign investors' disputes, has given its decision in favour of Turkish firm Karkey Karadeniz Elektrik Uretim and imposed a fine of $1.6 billion on Pakistan, sources informed Geo News on Wednesday.

Karkey had registered a claim with the ICSID against Pakistan in 2013 for violation of their contract of as many as $564.6 million for a period of five years, for building rental power plants in Karachi.

The contract was struck down in the Supreme Court decision by then-Cheif Justice Iftikhar Chaudhry in 2012 on a petition by Pakistan Muslim League-Nawaz leader Khawaja Asif and Faisal Saleh Hayat, which called for shutting down all rental power projects in the country.

According to sources, in March 2017, Pakistan offered to give compensation of Rs700 million to Karkey through the Turkish government. Both the respective governments are in negotiations with the company, said sources.