ISLAMABAD: The Supreme Court on Wednesday noted that the International Centre for Settlement of Investment Dispute (ICSID) award against Pakistan in Reko Diq case is like “a nuclear bomb”.
A five-judge bench, headed by Chief Justice Umar Ata Bandial and comprising Justice Ijazul Ahsan, Justice Muneeb Akhtar, Justice Yahya Afridi, and Justice Jamal Khan Mandokhel, heard the presidential reference.
Justice Muneeb responding to the contention of Balochistan Bar Council (BBC)’s counsel said; “ICSID award is like a nuclear bomb it could be taken in anywhere in the world.” He said ICSID under the Washington Convention has been signed by Pakistan. “On the basis of this award Pakistan’s asset anywhere in the world could be attached,” he added.
Amanullah Kanrani, appearing on behalf of the BBC, briefly told the bench that the mining project by the foreign company, first by BHP, and later Antofagasta and Barrick Gold, started in 1993, and still it could not be completed. He asked the court to see this aspect and that Barrick Gold under the new agreement be given a timeframe to complete the project.
The chief justice said for the time being the danger of $10 billion claim of mining company is looming over the country, adding a decree has been issued by the ICSID and in the present circumstances the best option is the settlement. He, however, said the government needs to see after the discovery of gold in Reko Diq where the process for its refining would take place. He asked the attorney general that though the government does not have the capacity of gold mining, but whether it has analysed the process and what would be its mechanism.
Reko Diq deal: SC inquires about any mining policy, legal framework formulated
He further questioned whether the government has examined what would be the oversight of the project by Pakistan. He said the settlement is good, but Pakistan should not compromise on the other aspects of the project.
The CJP noted that Afghanistan during the period of unrest had signed an agreement with the foreign company for gold mining with better terms. Its investment was zero, but in royalty demanded 25 per cent. He said; “We (federal government) would have to be careful in entering the new agreement for the international settlement.”
The chief justice said they have noted no direct accusation of corruption attributed to the foreign company in the Supreme Court (2013) judgment. He said had it be done then they (foreign company) could be stopped from approaching the ICSID. He said in one or two places, in the SC judgment, it had been mentioned that Balochistan Development Authority (BDA) had no capacity or authority, but it was forced to relax the rules.
Additional Attorney General Amir Rehman said that the government has done due diligence. Upon that the chief justice said they know what kind of due diligence is done in Pakistan, adding without opening the envelope the federal cabinet gave approval to a transaction.
The case was adjourned until Monday.
Copyright Business Recorder, 2022
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