As a major relief for Pakistan, The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has granted a stay on the enforcement of the massive penalty of $6 billion imposed on Pakistan for its decision to deny a mining lease for the Reko Diq project to Australia’s Tethyan Copper Company (TCC).
Attorney General Pakistan (AGP) office termed the development a ‘success’ for Pakistan and its legal team for earning a stay on the hefty fine that comes about two percent of the country’s yearly GDP.
The global arbiter International Centre for Settlement of Investment Disputes (ICSID) had in July last year, decided in favour of the Australian company in a case wherein Pakistan was made liable to pay off $6 billion in compensation.
However Pakistan, upon enforcement proceedings by Tethyan Copper Co. Pty Ltd on the litigation, filed a petition for a stay and initiated annulment. ICSID granted Pakistan a provisional stay earlier in April upon initiating proceedings for the annulment of the verdict.
The tribunal finally ruled in favour of Pakistan yesterday and confirmed the stay on enforcement of the award until the final hearing set for May 2021.
Back in March, a delegation led by AGP Khalid Jawed Khan had visited London to prepare for Pakistan’s submissions for an international arbitration tribunal hearing on stay on the award of a penalty of $6 billion in the Reko Diq case.
The Government of Pakistan sought out all avenues in preparation to ensure that “Pakistan is granted a stay on enforcement of the penalty during the pendency of the annulment proceedings”, a statement issued by the AG Office said before the stay was awarded.