Reko Diq case
Pakistan is vigorously contesting these proceedings: AG office
news desk
islamabad
Pakistan is faced with another setback on the international legal front as the British Virgin Islands high court ruled to attach certain assets belonging to the country’s institutions, sources revealed.
Sources informed that the British Virgin Islands high court passed an ex parte order on December 16 regarding the attachment of Pakistani institutions’ assets. In view of that order, Pakistan cannot sell these assets.
For the enforcement of the $6 billion award in the Reko Diq case, Tethyan Copper Company (TCC) has sought attachment of certain assets belonging to Pakistani institutions.
‘Govt vigorously contesting matter’
Pursuant to the proceedings for the enforcement of the award before the high court of Justice in British Virgin Islands by TCC, the office of the Attorney General for Pakistan (AGP) has said that the government of Pakistan is vigorously contesting the matter with all legal resources available to it. Likeiwse, the government is also engaged in settling the matter actively.
Without prejudice to such engagement, it is reiterated that the government of Pakistan shall vigorously pursue proceedings initiated by the TCC in any jurisdiction and the government reaffirms its commitment to protecting national assets, wherever they may be located, says the statement issued by the AGP.
The International Center for Settlement of Investment Disputes (ICSID) on September 17 issued a 70-page order in which it was decided that the stay of enforcement of $6 billion award — the same forum rendered on July 12, 2019 — shall be continued on a conditional basis.
The order said Pakistan shall provide an “unconditional and irrevocable” bank guarantee or the LC for 25 per cent of the award, plus accrued interest as of the date of the decision. The guarantee or the LC was to come from a reputable international bank based outside of Pakistan, which was pledged in favour of the claimant — Tethyan Copper Company (TCC) — and to be released on the order of the ICSID.
The ICSID also held that if Pakistan could not furnish the security and undertaking in terms as set out within 30 days after notification of the decision, the stay of enforcement in the amount of 50 per cent of the award, plus accrued interest as of the date of the decision would be lifted. However, Pakistan missed the deadline and did not deposit 25 per cent bank guarantee.
