The 13-page verdict was announced by Chief Justice of Pakistan Umar Ata Bandial today.
The Supreme Court on Friday declared that the settlement agreement between Barrick Gold and the government of Pakistan on the Reko Diq mining project is legal.
Chief Justice of Pakistan Umar Ata Bandial announced the 13-page short opinion after a five-judge larger bench of the apex court reserved its decision on November 29 in the presidential reference.
In the settlement deal, there is no violation of the apex court’s 2013 judgment, which declared the first agreement as void
Through the reference, the government sought opinions on two questions.
First, is the deal with the complainant company Tethyan Copper Company (TCC), compliant with the apex court’s earlier judgment in the Maulvi Abdul Haq case.
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In July 2019, the International Centre for Settlement of Investment Disputes (ICSID) Tribunal ruled in favour of TCC, ordering Pakistan to pay a hefty fine of $5.9 billion.
Second, is the proposed Investment Protection Act compliant with the Constitution? The president questioned that “if enacted, would the proposed Foreign Investment (Protection and Promotion) Bill 2022 be valid and constitutional or not”.
It is learnt that in case the deal is not finalised between Barrick Gold and Pakistan till December 15, the country will have to face a penalty of $100 million.
Similarly, the country will also be awarded billions of dollars by the ICC Arbitral tribunal. Two actions are required before the signing of the deal.
Firstly, the SC opinion on the two questions, and secondly, the appropriate legislation on this investment.
Earlier, on the advice of the prime minister, the President of Pakistan Dr Arif Alvi filed a reference in the SC under Article 186 of the Constitution, requesting the apex court to evaluate the two key questions.
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