ISLAMABAD: Pakistan and Hungary are to prepare a list of genuine investors after signing the Bilateral Investment Treaty (BIT) given concerns of European countries that free movement of personnel may lead to foreign nationals disappearing or moving away.

This information was shared during the second preparatory meeting for the second round of negotiations on Pak Hungary Bilateral Investment Treaty (BIT) convened in Board of Investment (BoI) on August 3, 2022.

Zulfiqar Ali, DG (PP/L), BoI explained about the background and progress made so far on the BIT through a presentation and stated that the Pakistani negotiating team will soon be visiting Budapest, Hungary for second round of negotiations. He requested all the stakeholders to share their views/comments in writing to be made available on the dates of the second round of negotiations in BoI for virtual participation.

Ahmad Irfan Aslam, AAG/Head IDU commented that Pakistani team should act as per given mandate by the Federal Cabinet in the approved BIT Template. The approved draft model BIT template does not allow indirect expropriation and at this stage of second round, Pakistan should not include the “Indirect Expropriation” in the draft BIT, ignoring the deadlock (if it occurs). However, at the end of second round, Pakistan should look into the cost at which indirect expropriation could be included in the BIT. He also explained the expropriation process in detail.

He further contended that if there is some deadlock, further guidelines will be taken from the Federal Cabinet.

Head - IDU Attorney General Office, also indicated that all European countries have concerns to allow free movement of personnel - having fear of foreign nationals disappearing or moving away.

Copyright Business Recorder, 2022