The International Centre for Settlement of Investment Disputes (ICSID), one of the five organisations of the World Bank Group, has announced a huge award of $5.976 billion against Pakistan in the Reko Diq case.
The International Centre for Settlement of Investment Disputes (ICSID), one of the five organisations of the World Bank Group, has announced a huge award of $5.976 billion against Pakistan in the Reko Diq case.
The international tribunal which provides facilities for conciliation and arbitration of international investment disputes, rendered its judgement on Friday a 700-page ruling against Pakistan in the Reko Diq case.
The ICSID awarded a $4.08bn penalty and $1.87bn in interest. The full details of the case are yet to be released by the tribunal.
The management of the Tethyan Copper Company (TCC) had claimed $11.43bn in damages. The company had filed claims for international arbitration before the ICSID in 2012 after the Balochistan government rejected a leasing request from the company.
The case between the Pakistani government and the international company continued for at least seven years.
The TCC lodged the case against Pakistan on January 12, 2012, and the ICSID constituted the tribunal on July 12, 2012.
Klaus Sachs of Germany headed the tribunal while Stanimir A. Alexandrov of Bulgaria represented the claimants and Leonard Hoffmann of United Kingdom represented Pakistan.
Prime Minister Imran Khan on Sunday issued orders for the formation of a commission to investigate and fix responsibility for the massive loss borne by Pakistan in the Reko Diq case.
The premier’s directives were communicated in a press release issued by the attorney general’s office on Sunday. The statement comes as the first official response on the $5.976 billion penalties imposed on Pakistan in the matter by the International Centre for Settlement of Investment Disputes (ICSID).
In the past former Chief Minister Balochistan Dr. Malik resisting the pressure of Federal Government to have a negotiated deal with International Mining companies but Federal government does not care about the interest of Balochistan. The province is comparatively in precarious condition in education, health and infrastructure. More than 70 percent people do not have access to health units and there is no proper education. Majority of the people do not have access to clean drinking water and natural gas. The population of entire Balochistan is lesser than even big cities of other provinces. The province has always been denied education, health and basic facilities. However, the resources of the province were brutally plundered and exploited by the federal governments and military dictators. The same policy is still continued despite the tall claims of federal government.
The multi-national companies are globally known brutal exploiters but in modern world it is the responsibility of the political leadership to take best decision in the interest of their people.
In past, such agreements regarding mega projects were paid least attention and some naïve leaders of the province even did not think that they were selling a huge reserved on a throw away prices. Sandik project is the best example where still people are in need of water, basic health units and primary schools.
It is a nightmare for the Government of Balochistan and centre as they loses the international arbitration and pay a hefty fine of 5.976 billion US dollars damages to the TCC.
The tribunal has ruled that there is no demonstrable corruption in the affair, which reflects badly on how Pakistan has dealt with the case which can be said to have damaged the country’s ability to bring in international investment on a fair and equitable basis. Pakistan cannot point to international courts as being unjust without showing what it has done to uncover who was behind the malpractices in the Reko Diq agreement.
The “misstatement” of scientist Dr Samar Mubarakmand before the tribunal was one of the main reasons behind the ICSID slapping the heavy penalty on Pakistan.
“International Tribunals should reconsider the implications of their decisions and that will impact on development and poverty alleviation.
Now Pakistan’s have to pay the hefty fine for Reko Diq mining agreement as country continue to bleed with financial exchequer needlessly.
Commission should be form to investigate all the agreement from day one till now and also probe reason behind Reko Diq predicament.