World Bank tribunal stays over $6b fine in Reko Diq case

World Bank tribunal stays over $6b fine in Reko Diq case

Islamabad (Web Desk): The World Bank’s International Centre for Settlement of Invest­ment Disputes (ICSID) has issued a stay on the enforcement of the massive penalty of $6 billion issued against against Pakistan in the Reko Diq mining lease dispute.

In a statement on Thursday, the Attorney General for Pakistan (AGP) office termed the positive development a “success” for Pakistan and its legal team.

In July 2019, an ICSID tribunal had slapped a whopping $5.97 billion award against Pakistan for denying the mining lease to Aus­tralian company Tethyan Copper Company (TCC).

The tribunal – chaired by Germany's Klaus Sachs and including Bulgarian arbitrator Stanimir Alexandrov and the UK's Lord Hoffmann had ordered Pakistan to pay over $4 billion in damages to the TCC in addition to $1.7 billion in pre-award interest.

Pakistan had moved a plea before ICC for annulment of the award on several grounds. When the country's plea was registered, an interim stay was granted automatically on the enforcement proceedings initiated by the TCC.