Pak-Canadian promotion, protection pact in final stages: BoI seeks provinces' comments

Pakistan-Canada bilateral promotion and protection agreement is in final stages as the Canadian government has sent a draft agreement to the federal government for suggestions, Business Recorder learnt here on Tuesday. For this purpose, the Board of Investment (BoI) has forwarded a letter along with a copy of draft agreement to the Chief Secretaries of Sindh, Punjab, Balochistan and NWFP on January 4, 2010 seeking comments on the agreement on urgent basis.
Both the countries had decided to explore the possibility of concluding the Bilateral Promotion and Protection Agreement. The Canadian side shared their draft agreement for our consideration, they added. Informing about the draft agreement, they said that each party shall encourage the creation of favourable conditions for investment in its territory by investors of the other party and shall admit such investments in accordance with the agreement.
Each party shall accord to covered investments treatment in accordance with the customary international law minimum standards of treatment of aliens, including fair and equitable treatment and full protection and security. They said that each party shall accord non-discriminatory treatment with respect to measures it adopt or maintain relating to compensation for losses suffered by investments in its territory owing to armed conflict, civil strife or a natural disaster to investors of another party and to covered investments.
Sources said a party may not require that enterprises of that party, that are covered investment, appoint individuals of any particular nationality to senior management positions. Moreover, the draft agreement also contains performance requirements, transparency, subrogation, taxation measures, denial of benefits, settlement of disputes between an investor and the host party, governing law, receipts under insurance or guarantee contracts etc, they further said.
The copies of draft agreement of Pakistan-Canada Bilateral Promotion and Protection Agreement had been forwarded to the finance and industries department of the provincial government and Sindh Board of Investment (SBoI) for suggestions, they said, adding that the comments would be sent shortly to the BoI for further progress.