Monday, June 27, 2022

Federal govt to bear all financial burden for Reko Diq development: PM Imran Khan


ISLAMABAD: Prime Minister Imran Khan has announced that the federal government will bear all the financial burden for Reko Diq and its development on behalf of the Balochistan government, ARY News reported on Wednesday.

In a Twitter message, PM Imran Khan said, “In line with my govt’s vision for uplift of smaller provinces, I have decided our fed govt will bear all the financial burden for Reko Diq & it’s development on behalf of Govt of Balochistan.”

He said that the move will help usher in an era of prosperity for the people and the province of Balochistan.

Reko Diq case

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

The International Center for Settlement of Investment Disputes (ICSID) had imposed a penalty of 5.8bn on Pakistan in the Reko Diq case. In a 700-page ruling, ICSID had 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 the license for gold and copper mining at RekoDiq, area of Balochistan but the former chief justice of Pakistan Iftikhar Muhammad Chaudhry cancelled the agreement with the company.


Later in May 2021, the high court of the British Virgin Islands (BVI) had voided the earlier verdict in the Reko Diq case wherein PIA hotels in Paris and Manhattan were frozen as the country was liable to pay out a whopping US$6 billion to Tethyan Copper Company (TCC) and released PIA assets registered by BVS company.

The BVI High Court of Justice had ruled in favour of Pakistan after a review appeal the country submitted on the Nov 2020 verdict in which TCC had won an award of US$6 billion, about the size of IMF’s bailout package to Pakistan, to be paid by Pakistan and in turn asked the court to freeze its assets registered in BVS remits.

BVS then had frozen the assets of PIA: Hotel Scribe Paris and The Roosevelt Hotel (Manhattan) but a review petition then filed by the Pakistani litigation team won the PIA assets back as the freezing has been axed.

Moreover, the court had further ruled the litigation expenses incurred by the country in the review appeal will also be recompensed by TCC.


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