Pakistan's unilateral renegotiation of clean power contracts will undermine investor confidence and be detrimental to the long-term future of the sector, a group of eight development finance institutions said.

Global lenders including a unit of the World Bank and Asian Development Bank have slammed Pakistan for renegotiating contracts with power producers and warned the move will undermine investor confidence and future private investments.

The Financial Times last month reported Pakistan’s military and intelligence agencies were heavily involved in talks aimed at changing the terms of renewable energy agreements signed with power companies a decade ago.