The government is planning to pass legislation to safeguard investments from overseas.
The ever-increasing number of complaints from investors was the impetus for the decision to pass the law.
ISLAMABAD: Following its experience with the Reko Diq project, the federal government has resolved to enact legislation to safeguard foreign investment in the nation going forward.
The proposed bill also sought to shield investors from pointless legal actions, according to parliamentary sources.
The legislation would be passed in accordance with the president’s reference to the Supreme Court-filed Reko Diq settlement agreement.
According to the sources, a Senate session would be called for this.
The Foreign Investment Protection Bill, they said, would shield investors from pointless headaches.
The measure would give the nation’s foreign investors a secure environment.
The sources claimed that increasing complaints from international investors were the driving force behind the decision to implement the legislation.
They noted that there were ongoing discussions on whether the bill should be introduced in the Senate or the National Assembly first.
The Supreme Court (SC) ruled on Friday that the settlement agreement for the reactivation of the Reko Diq mining project between the Pakistani government and two foreign corporations, Antofagasta and Barrick Gold Corporation, was legitimate.
Following a five-judge bigger bench of the supreme court’s reservation of judgement in the presidential referral on the matter on November 29, Chief Justice of Pakistan Umar Ata Bandial issued the 13-page brief order.
The presidential reference sought the SC’s view on whether or not its 2013 ruling precluded the Centre and province governments from joining into the implementation accord again after the settlement deal was struck in March.
The Supreme Court noted in its ruling that the settlement agreement did not violate the 2013 ruling by the Supreme Court of India declaring the original accord unconstitutional.
“The Reko Diq project’s reconstitution process has been carried out in a transparent manner and with necessary care. The agreements are being signed by parties who are legally authorised and qualified to do so, according to the order written by Justice Ijazul Ahsan.
Although the Supreme Court gave the federal government a favourable verdict on the Reko Diq project settlement deal, more steps must be taken before the agreement between Pakistan and Barrick Gold can be signed before the deadline of December 15.
Resolutions in support of the proposed agreements have previously been approved by the Sindh and Balochistan assembly.
Now, the Foreign Investment (Protection and Promotion) Bill, 2022, must be approved by the National Assembly.
These actions must be taken before to December 15.
The nation would be required to pay $4 million each day in interest on the $5.9 billion fine issued by the International Centre for Settlement of Investment Disputes (ICSID) on July 12, 2019, if the settlement agreement is not finalised before December 15. In a same vein, Pakistan will also be required to pay $100 million to Antofagasta, the second complaining business.
Senior attorneys questioned why the government took so long to take action to fulfil the requirements prior to the formal agreement when both sides had agreed to an out-of-court settlement in the month of March.
