ISLAMABAD: New developments reported over Pakistan’s $6 billion penalty inReko Diq case in ICSID.
A delegation led by Attorney General for Pakistan Khalid Jawed Khanrecently visited London to prepare in advance for Pakistan’s submissionsfor an international arbitration tribunal’s hearing on stay on the award ofa penalty of $6 billion in the Reko Diq case.
The International Center for Settlement of Investment Disputes (ICSID) hadslapped a penalty of $6 billion on Pakistan in July 12 last year over itsdecision to deny a mining lease for the *Reko Diq* project to a consortiumof Chilean and Canadian companies.
The Government of Pakistan is seeking out all avenues in preparation toensure that Pakistan is granted a stay on enforcement of the penalty duringthe pendency of the annulment proceedings, a statement issued by the AGOffice said.
It said the Office of the Attorney-General for Pakistan filed a request forannulment on November 8, 2019 as the first step to annul the Final Awardrendered by the ICSID on July 12 2019.
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Alongside the request for annulment, Pakistan also requested a provisionalstay on enforcement of the award, which was granted on November 18 2019.
Presently, the ICSID award is stayed, which means that the applicant thatinstituted the case can’t pursue any ongoing enforcement proceedings orinitiate new ones.
The ICSID secretariat will now notify the tribunal for the annulment phaseof proceedings and subsequently, decide on the question of stay onenforcement as it retains the formal prerogative as to when to notify thetribunal.
