The Lahore High Court has struck down the Punjab government’s attempt to terminate an environmental and municipal services agreement with a Turkish company, declaring the move illegal and unconstitutional, 24NewsHD TV channel reported on Wednesday.
The court ruled that halting the foreign investment not only violated the terms of the agreement but also posed serious harm to Pakistan's economic and diplomatic interests.
In a written verdict issued by Justice Jawad Hassan, the court stressed the legal standing of the agreement between the Turkish firm and the Punjab government, stating it could not be suspended unilaterally.
The judgment followed a petition filed by the Turkish company, represented by Advocate Malik Akhtar Javed, who argued that the provincial government had no authority to nullify the contract, particularly after the Secretary for Local Government had already ruled in the company's favour.
Justice Hassan, in his remarks, highlighted the long-standing and historic ties between Pakistan and Türkiye, pointing out Türkiye’s diplomatic and military support to Pakistan during recent past conflicts with India.
He asserted that obstructing investment from such a friendly nation was contrary to Pakistan’s national interest.
He added that cancelling the agreement would have potentially led to heavy financial penalties for the government.
The court further noted that access to clean water and efficient municipal services is a fundamental right of citizens.
Completion of such projects, the judge observed, would contribute significantly to both the economic and social uplift of the population.
He cited recent official visits to Türkiye by Chief of Army Staff Field Marshal Asim Munir and the Prime Minister of Pakistan as evidence of the importance of strengthening bilateral cooperation at this critical juncture.
In light of these considerations, the court annulled the Punjab government's notice to terminate the agreement and directed the Secretary for Local Government to hear all stakeholders and resolve the matter within 14 days.