Sikander Hayat -October 1, 2019
Pakistan’s gold mine and believed to be the world’s 5th largest gold deposit, Reko Diq is in a dismal state as Pakistan has been handed a fine of 6 Billion US Dollars for its mismanagement and efforts at expropriation. How is this humungous fine going to affect Pakistan’s Foreign Exchange Reserves?
The award in famous Reko Diq case handed down by International Centre for Settlement of International Disputes (ICSID) has provided a fresh impetus to the seemingly endless debate on limitations to be observed in the exercise of powers of Supreme Court under Article 184 (3) of the 1973 Constitution of Islamic Republic Of Pakistan. Additionally, the issue has also gained traction owing to the humongous amount of the award for nearly USD 6.00 Billion and its effect on already depleting foreign exchange reserves not to mention the collateral damage which may result in form of depreciation of investor confidence in case Pakistan has to finally pay the awarded amount.
The dispute in the Reko Diq case arose out of the non granting of mining lease to Tethyan Copper Company Ltd (TCC), operating in Pakistan through wholly-owned subsidiary i.e TCCP, which pursuant to novation agreement dated 1.4.2006 became party to theChaghai Hills Exploration and Joint Venture Agreement (CHEJVA) executed on 29.7.1993 with Baluchistan Development Authority(BDA) for exploring copper and gold in the Reko Diq area of Balochistan…... Read More