- International Centre for Settlement of Investment Disputes grants a stay on $6 billion penalty against Pakistan
Pakistan gets the biggest respite in Reko Diq Case as World Bank’s International Centre for Settlement of Investment Disputes (ICSID) gives stay on enforcement of $6 billion penalty against Pakistan.
The penalty was awarded by ICSID Tribunal back in July 2019 for cancelling a mining lease to an Australian company, Tethyan Copper Company (TCC) against the pre-agreed terms. In November 2019, Pakistan challenged the decision of penalty and instituted proceedings to abrogate the penalty. Pakistan’s appeal against enforcing the penalty over its cancellation of the Reko Diq mining lease for Tethyan Copper Corp is under consideration.
Pakistan and TTC have expressed their willingness to find alternative solutions to the dispute but there is no progress on this front.
Experts believe that grant of stay is net positive for Pakistan. With dedicated efforts both from Pakistan’s establishment and Government officials, Pakistan has been successful in steering away from the harsh penalty. The upper hand of TTC has somewhat diluted with both parties now at equal footing.