Friday, May 27, 2022

‘Breakthrough’ as Pakistan, TCC agree over share in Reko Diq case

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ISLAMABAD: In a major breakthrough in Reko Diq case, Pakistan and Tethyan Copper Company (TCC) have agreed over 50 percent shares, likely paving way for averting a multi-billion-dollar fine imposed on Pakistan from an international court, ARY NEWS reported.

According to sources privy to the details, Pakistan and Tethyan Copper Company (TCC) have agreed to divide shares with each side getting 50 percent of them, contrary to 25 percent shares for Pakistan in the previous deal.

It emerged that the agreement between them would likely be signed in February and if finalized, it would avert a looming threat on Pakistan over the imposition of a US$6 billion fine.

Moreover, the sources within TCC said that they wanted a legal cover for their investment this time and do not want a repeat of the previous episode that saw a legal battle between two sides. “We are in talks with Pakistan to make out of court settlement over the issue,” they said.

In 2019, Pakistan managed to get a reduced penalty from a massive $16bn to $6bn in Reko Diq case.

Read More: BVI COURT REVERSES REKO DIQ CASE VERDICT, SAVES PIA HOTELS & LITIGATION EXPENSE

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 a US$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 a license for gold and copper mining at RekoDiq, area of Balochistan but the former chief justice of Pakistan Muhammad Chaudhry had cancelled the agreement with the company.

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