Pakistan has successfully secured over $27 million in savings in the CASA-1000 electricity project. This came after negotiations reduced contractor claims related to care and custody costs.
A high-level meeting held on March 9–10, 2026, in Ludvika, Sweden, led to the agreement. The Pakistani delegation included Syed Imtiaz Hussain Shah, Additional Secretary of the Ministry of Energy (Power Division), and Altaf Hussain, Managing Director of the National Grid Company.
Following the talks, both parties agreed to cap total care and custody costs at USD 9 million for Pakistan and Tajikistan combined. This covers the period up to February 2028, ensuring the continued maintenance and readiness of high-voltage direct current (HVDC) assets during the interim phase.
The agreement also allows a limited extension of up to three months beyond February 2028, with a 5% monthly cost escalation if required. This flexibility ensures that Pakistan can maintain infrastructure while awaiting full system commissioning.
The CASA-1000 project is designed to facilitate electricity trade between Central and South Asia. Delays caused by geopolitical instability in Afghanistan have pushed the commissioning of the HVDC system to September 2027. Interim care and custody arrangements are crucial to preserve the system’s operational readiness until then.
Officials emphasized that the savings will reduce Pakistan’s financial burden while securing critical energy infrastructure. The outcome reflects effective negotiation strategies and a commitment to maintaining regional energy cooperation despite delays.
The CASA-1000 initiative remains a vital project for regional electricity trade and energy security. Pakistan’s proactive approach demonstrates dedication to cost-efficiency, infrastructure management, and sustainable development in the energy sector.
In other related news also read China Expresses Concern Over Pakistan-Afghanistan Tensions
With these measures, Pakistan ensures that the project continues on track while safeguarding financial and operational interests.
