Daily Times

Special Assistant on Information and Broadcasting Asim Saleem Bajwa has termed the stay order over $6 billion penalty in the Reko Diq case a ‘great relief’.

In a tweet on Friday, Asim Saleem Bajwa while terming the World Bank decision a big relief for Pakistan, said that Prime Minister Imran Khan fully supports the government of Balochistan to develop the mining sector.

The World Bank’s International Centre for Settlement of Investment Disputes has granted stay on the enforcement of a hefty penalty imposed on Pakistan in the Reko Diq mining dispute.

In a statement in Islamabad, the office of Attorney General for Pakistan described the development as a success for the country and its legal team.

In July last year, an international arbitration tribunal of the ICSID had slapped nearly six billion dollars penalty on Pakistan for denying a mining lease to Australian company Tethyan Copper Company (TCC).

The World Bank’s International Center for Settlement of Investment Disputes (ICSID) has granted Pakistan a stay order of six months in the case. The ICSID had imposed a penalty of $5.976 billion against Pakistan in its 700-page ruling in July last year.

In November 2019, Pakistan challenged the Award and initiated proceedings seeking its annulment and was granted a provisional stay upon initiating annulment proceedings.

According to the attorney general’s office, a hearing to confirm the stay order took place via video link in April 2020.

On 16 September 2020, the tribunal finally ruled in favour of Pakistan, confirming the stay on the award’s enforcement.

ICSID is still considering Pakistan’s appeal against enforcing the penalty over its cancellation of the Reko Diq mining lease for TCC, a 50-50 joint venture of Barrick Gold Corporation of Australia and Antofagasta PLC of Chile, and a final hearing will take place in May 2021.

The Reko Diq district Balochistan province is famed for its mineral wealth, including gold and copper.