The Islamabad High Court (IHC) has dismissed a petition filed by the Government of NWFP challenging Hydel power policy 2001 of the federal government, which allowed a foreign investor, Suki Kenari to construct a dam on Konhar River in the province. The NWFP Government claimed that it had exclusive right to construct dams on its rivers and produce electricity.
Barrister Syed Ali Zafar, pleading the case of the foreign consortium of Malaysian and Arab investors, opposed the petition and contended that since water resources belonged to Pakistan and the NWFP's claim of having exclusive rights on rivers amounts to usurping the rights of the nation.
He submitted that this is the reason that 1973 constitution has specifically empowered the Federal Government to allow the construction of dams. Ali further argued that the assertions of the NWFP Government that they were entitled to get hydel profits or had exclusive rights to construct dams and the Power policy was unlawful were all disputes between the province and the Federation, which could only be decided by the Supreme Court.
It was further submitted that in the prevailing circumstances, where there is dire need of electricity, his clients, who were ready and willing to invest in Pakistan inspite of threats of terrorism, should have been welcomed. Instead, the NWFP Government's actions amounted to malafide, as it invited the foreign investor and after they spent millions of rupees, now wanted him to leave only because of a change in the Government.
Acting for the NWFP Government, Hafeez Pirzada, submitted that Nepra should not have allowed the construction of dam to proceed in the light of constitutional objections raised. The court, dismissing the NWFP's petition observed that the SC of Pakistan could exclusively decide the case. The court also decided that Nepra had not committed any illegality in refusing to adjudicate upon these matters and allowing the Tariff petition of Suki Kenari.