International arbitration court imposes $5 billion penalty Pakistan

15 July: World Youth Skills Day
July 18, 2019
Kalraj Mishra appointed Himachal Pradesh Governor, Acharya Devvrat sent to Gujarat
July 18, 2019

International arbitration court imposes $5 billion penalty Pakistan

  • A World Bank arbitration court has imposed a penalty of over five billion dollars on Pakistan for unlawful denial of a mining lease to a company for the Reko Diq project in 2011.
  • The Tethyan Copper Company had approached the International Centre for Settlement of Investment Disputes in 2012 after the Balochistan government declined its lease request.
  • Pakistan’s Supreme Court had terminated the deal in 2013. The mining company said that it had invested over $220 million on Reko Diq.
  • The case between the Pakistan government and the international company continued for at least seven years.
  • The penalty came as a major blow to the cash-strapped economy of Pakistan that has received billions in financial aid packages from international organisations such as the International Monetary Fund (IMF) and a few friendly countries, including China, Saudi Arabia and the United Arab Emirates (UAE) during the current fiscal year.

Leave a Reply

Your email address will not be published. Required fields are marked *

Social media & sharing icons powered by UltimatelySocial
error: Content is protected !!