WASHINGTON: In order to deal with the penalty of $5.976 billion imposed on Pakistan Law Minister Dr Farogh Naseem will discuss the International Centre for Settlement of Investment Disputes (ICSID) penalty with a legal firm here.
According to details presently country’s legal officials are here in order to figure out a stratagem against the penalty imposed by ICSID on Pakistan in the Reko Diq case. The legal experts will also take up the issue of the Indus Water Treaty.
Determined that there will be no out-of-court settlement talks, Pakistan – that has hired US-based legal firm GST to file a review – is working on a number of approaches to handle the quandary.
A relevant piece published earlier:
Reko Diq/Karkey cases: Pakistan to challenge heavy fine imposed
ISLAMABAD: Pakistan has decided to challenge heavy penalties of $1.2 billion and $6.2 billion in Karkey and Reko Diq cases, in international court.
This was stated here by the Minister of Power Omar Ayub Khan at a Presser held here today. He warned that Pakistan ‘s assets could be seized following damages imposed by World Bank’s International Center for Settlement of Investment Disputes (ICSID)
PTI government is accusing the former government for this penalty, maintaining their imprudent measures had resulted into imposition of huge damages against Pakistan.
Minister for Power informed at a Presser here: “Nine other IPPs had gone to the London Court of International Arbitration, winning Rs. 14 billion against Pakistan…if the country defaulted on these payments, national assets abroad could be confiscated…It has happened with many countries and we do not want to see that situation with us; that is why we are going to file an appeal against the decisions,” he added.
Minister informed that Rosch Power had opted for a local arbitrator whereas, other eleven companies had gone to an international arbitrator. Government of Pakistan had to pay Rs. 14 to Rs. 15 billion to these companies due to award given in favor of these IPPs in an international court.
He said that PTI-led government was attempting to make out-of-court settlements with the power companies to stop them from going into international court.
