Chairman China-Pakistan Economic Corridor (CPEC) Authority Lieutenant General retired Asim Saleem Bajwa has said that the stay order by World Bank tribunal on the $ 6 bn awards against Pakistan is a great relief.
Taking to his official twitter handle, Chairman CPEC Lieutenant General retired Asim Saleem Bajwa said:
Reko Diq:Stay order by World Bank tribunal on $ 6 Bn award vs Pakistan is great relief.Meanwhile PM directs to fully support GOB for accelerated dev of mineral sec in a transparent manner,structured system, best tech,involve local investors,develop own HR #PakistanMovingForward
— Asim Saleem Bajwa (@AsimSBajwa) September 18, 2020
Attorney General Pakistan (AGP) office had termed the development a ‘success’ for Pakistan and its legal team for earning a stay on the hefty fine that comes about two percent of the country’s yearly GDP.
The global arbiter International Centre for Settlement of Investment Disputes (ICSID) had in July last year, decided in favor of the Australian company in a case wherein Pakistan was made liable to pay off $6 billion in compensation.
However Pakistan, upon enforcement proceedings by Tethyan Copper Co. Pty Ltd on the litigation, filed a petition for a stay and initiated annulment. ICSID granted Pakistan a provisional stay earlier in April upon initiating proceedings for the revocation of the decision.
Note that, in July 1993, the then Chief Minister of Balochistan, Nawab Zulfiqar Ali Magsi, gave the contract for the Reko Diq project to the Australian company PHP.
The project, located on 3,347,000 acres in Balochistan, was contracted for drilling only, but the Australian company had contracted with the Italian company Tethian to do more work without trusting the Balochistan government.
The Australian company had tried to sell Reko Diq’s gold and copper to Canada, Italy and Brazil through the port of Gwadar, giving Balochistan only 25 per cent of its total revenue.
However, the Balochistan government cancelled the agreement after irregularities by the PHP. Later, the provincial government decided in 2010 that the provincial government would work on the project itself.
In January 2013, then-Chief Justice Iftikhar Muhammad Chaudhry annulled the Reko Diq agreement between the Balochistan government and the Australian mining company, calling it against the country’s laws.