ISLAMABAD: The Pakistani government has resolved the Karkey dispute withthe help of Turkish President Recep Tayyip Erdogan, Prime Minister ImranKhan announced on Monday.
In a tweet, PM Imran said the matter was resolved “amicably” and thatPakistan had successfully saved $1.2 billion — the sum the InternationalCentre for Settlement of Investment Disputes (ICSID) had imposed as apenaltiy on Islamabad.
“PTI Govt, with the help of President Erdogan, has amicably resolved theKarkey dispute and saved Pak USD 1.2 billion penalty imposed by ICSID,” thepremier wrote.
Last month, the ruling Pakistan Tehreek-e-Insaf’s (PTI) leader and seniorlawyer, Babar Awan, had told media that the $1.2-billion sum was likely tobe waived off due to backdoor negotiations between the two countries.‘Trust in Prime Minister Imran Khan’
“International institutions, through high-level backdoor contacts, haveagreed to waive off the penalty,” Awan had told reporters at a pressconference.
“This is very good news for Pakistan. International institutions have showntheir trust in Prime Minister Imran Khan.”
The ICSID — an arm of the World Bank that offers arbitration andconciliation services for disputes between governments and private foreigninvestors — had slapped a penalty worth $760 million plus interest to theTurkish ship-based energy firm, Karkey Karadeniz Elektrik Uretim, followingthe latter’s move to register arbitration claims against Pakistan under abilateral investment treaty (BIT).