The International Tribunal Announce $6billion Award against Pakistan in Reko Diq case
- Pakistan has successfully achieved its final push for an out-of-court settlement in the Reko Diq mining case.
- The award worth $5.976 billion is one of the biggest in ICSID history and comes at a time when Pakistan is facing an economic crisis.
- Pakistan has decided to challenge the award very soon by filing a revision application.
The International Center for Settlement of Investment Disputes (ICSID) has announced $5.976 billion award against Pakistan in the Reko Diq case.
The international tribunal issued a 700-page ruling against Pakistan in the Reko Diq case and awarded a $4.08 billion penalty and $1.87 billion in interest.
The sources said that Pakistan has decided to challenge the award very soon by filing a revision application. The revision application may take two to three years to decide.
Earlier, Tethyan Copper Company’s (TCC) management, the complainant whose contract was terminated had claimed $11.43 billion in damages. In 2012, when government of Balochistan turned down a leasing request from TCC, it filed claims for international arbitration before the ICSID of the World Bank.
The process has continued for seven years. The former chief justice of Pakistan Iftikhar Muhammad Chaudhry’s verdict in the Reko Diq case was the first in a series of events that led to the massive award.
Pakistan lost its first jurisdictional challenge after the case was filed and the international tribunal said that Pakistan has the jurisdiction to adjudicate the Reko Diq matter.
Afterward, the international tribunal declared that there was no wrongdoing in the agreement and finally, the tribunal held that Pakistan is liable to pay the damages.
Pakistan was making a last effort for an out-of-court settlement in the Reko Diq mining case. The Law Minister Dr. Farogh Nasim and Attorney General for Pakistan Anwar Mansoor Khan tried their best to negotiate on the Reko Diq issue.
Both senior officials had also visited the US after taking all stakeholders into confidence. The only remaining issue in the case was the final penalty on Pakistan, which has been now announced.