*ISLAMABAD: Pakistan has managed to get reduced penalty from a massive$16bn to $6bn in Reko Diq case.*
According to the details, the International Center for Settlement ofInvestment Disputes (ICSID) imposed a penalty of 5.8bn on Pakistan in theReko Diq case. In a 700-page ruling, ICSID awarded $4.08 billion penaltyand $1.87 bn in interest to Pakistan. The amount will be paid to TethyanCopper Company (TCC).
Tethyan Copper Company (TCC) had been granted license for god and coppermining at RekoDiq, area of Balochistan but the former chief justice ofPakistan Muhammad Chaudhry had cancelled the agreement with the company.
The company had filed a lawsuit against Pakistan at ICSID, claimingS11.43bn in damages in 2012. Sources privy to the matter said that Pakistanwill soon challenge the verdict.
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In 2013, a three-member bench of the Supreme Court, headed by then ChiefJustice Iftikhar Muhammad Chaudhry had declared Reko Diq lease agreementnull and void. The bench had given its verdict in favor of Balochistangovernment.
The short verdict had stated that the agreement under which Tethyan CopperCompany (TCCP) had been given contract, had been cancelled.
