Senate passes Foreign Investment Bill to protect Reko Diq deal

• Senate passed the Foreign Investment (Promotion and Protection) Bill
• The bill aims to protect investors and promote large-scale foreign investment
• The bill was passed to favour the multi-billion Reko Diq investment

ISLAMABAD: The Senate on Monday passed the Foreign Investment (Promotion and Protection) Bill, 2022 to promote and protect foreign investment in relation to the Reko Diq project.

Minister for Law and Justice Azam Nazeer Tarar moved the bill on behalf of Minister for Finance and Revenue Ishaq Dar in the Upper House which was part of the Senate’s supplementary agenda.

The bill aimed to protect investors from unnecessary court proceedings and promote large-scale foreign investment in the country’s national interest and sustainable development. The bill will promote foreign investment and provide relief in taxes, transfers and withdrawals.

Speaking in the House, the law minister said that foreign investment was very important for the country to progress. Pakistan suffered several fines due to a halting of the Reko Diq project, he said.

A day earlier, the Economic Coordination Committee (ECC) of the federal cabinet approved the opening of an escrow account for depositing $900 million for making the project operational.

The move came after receiving the endorsement of the multibillion-dollar project deal by the Supreme Court of Pakistan. The apex court declared the agreement signed with the Canadian company Barrick Gold Corporation as “legal”.

The bill will provide for the promotion and protection of certain qualified foreign investment in national interest to attract, encourage, and protect, large-scale foreign investments into Pakistan.

The bill states to ensure sustainable economic activity and growth, it is necessary to improve the investment climate in Pakistan by providing incentives in direct and indirect taxes and ease of transfer and repatriation of foreign investments to the large-scale foreign investment.

It also states that it is essential for the federal, provincial, local governments and other relevant authorities to work together and cooperate to ensure the provision of incentives and protection for qualified investments.

Later, the house was adjourned till Thursday, December 15 at 3:00 PM.

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