Pakistan agrees with Riyadh, Doha to resort to international investment arbitration

• The domestic forums will be given 8 months to provide a solution.
• In the event of no resolution, Doha and Riyadh may approach the PCA/ICSID.
• SIFC approves in principle the establishment of Nidra.

ISLAMABAD: Pakistan has agreed to allow the Kingdom of Saudi Arabia and Qatar to approach the Permanent Court of Arbitration (PCA) or the International Center for Settlement of Investment Disputes (ICSID) if they face any problem in the multi-billion dollar investments they plan to make in the projects, were mentioned The news on Wednesday.

The two sides are holding talks on the exact valuation of the Reko-Diq project and Manara Minerals is finalizing the term sheet and valuation.

Manara Minerals Investment Company is a new venture between the Saudi Arabian Mining Company (Ma’aden) and the Public Investment Fund (PIF) that will invest in mining assets globally for Riyadh and support the development of resilient global supply chains. While on Pakistan’s side, Reko Diq Mining Company (RMDC) has been tasked with hiring levies and payment mechanisms set for Balochistan.

“Pakistan has negotiated to include a phased approach to resolving investment disputes between the state and investors. Through this agreement, there will be a mandatory period of eight months to resolve the dispute in domestic forums,” sources told the publication.

An official said that in case of non-resolution of disputes, it was agreed that recourse could be made to PCA or ICSID as an international arbitration forum.

Investment capital can be attached to a Free Trade Agreement (FTA) to be signed with the GCC (Gulf Cooperation Council) countries, including the investor-state dispute settlement process through ICSID, as agreed with Saudi Arabia and Qatar, which was also shared with the GCC Secretariat.

The GCC told Islamabad that the legally cleared plan would be shared with Pakistan in due course.

In this regard, the Pakistani envoy has been tasked to follow up with the GCC Secretariat and brief before the next meeting of the Special Investment Facilitation Council (SIFC).

However, in the Aramco refinery project, it was decided to continue the project for its implementation.

SIFC turns on the green lights of Nidra

In another major development, SIFC has given in-principle approval for the setting up of the National Industrial Development & Regulatory Authority (Nidra).

The details of the authority will be finalized after consultation with the provinces.

The Board of Investment (BOI) has undertaken to initiate the legislative process for the proposed model under Article 147 in consultation with provincial governments and stakeholders, including framing a framework for the consolidation of all existing economic and industrial zones by March of 2024.

Until the legislation is passed, the proposed model will be worked on in consultation with provincial governments.