Washington: The Pakistan government recently requested a United States (US) federal court to prevent the USD 6 billion fine imposed in the Reko Diq case from being enforced, according to a New York-based legal publication.
The Australian company – Tethyan Copper Co. Pty Limited – won a dispute regarding the rejected Reko Diq mining case in Balochistan. This dispute was fought in the International Centre for Settlement of Investment Disputes (ICSID). The USD 6 billion fine decided is the second largest amount to be imposed by the ICSID. It also amounts to 2% of Pakistan’s annual gross domestic product (GDP) and 40% of its total liquid foreign reserves.
Pakistan appealed to the court that if this fine is imposed, it would negate the USD 6 billion loan the country had received from the International Monetary Fund (IMF) for its economic stability. It also informed ICSID that the proposed project was based on certain conditions not valid under Pakistani law, and Tethyan cannot seek damages. It also pointed out that no leases or permits had been issued by the government for this project, so it was not liable to pay this fine.
