Pakistan gets a $6 billion blow from ICSID
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*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 of Investment Disputes (ICSID) imposed a penalty of 5.8bn on Pakistan in the Reko Diq case. In a 700-page ruling, ICSID awarded $4.08 billion penalty and $1.87 bn in interest to Pakistan. The amount will be paid to Tethyan Copper Company (TCC).
Tethyan Copper Company (TCC) had been granted license for god and copper mining at RekoDiq, area of Balochistan but the former chief justice of Pakistan Muhammad Chaudhry had cancelled the agreement with the company.
The company had filed a lawsuit against Pakistan at ICSID, claiming S11.43bn in damages in 2012. Sources privy to the matter said that Pakistan will soon challenge the verdict.
In 2013, a three-member bench of the Supreme Court, headed by then Chief Justice Iftikhar Muhammad Chaudhry had declared Reko Diq lease agreement null and void. The bench had given its verdict in favor of Balochistan government.
The short verdict had stated that the agreement under which Tethyan Copper Company (TCCP) had been given contract, had been cancelled.
