Pakistan gets stay on $6b penalty in Reko Diq case
The World Bank's International Centre for Settlement of Investment Disputes (ICSID) has stayed the enforcement of $6 billion penalty on Pakistan for denying a mining lease for the Reko Diq project to Australia's Tethyan Copper Company (TCC).
The office of the attorney general of Pakistan described the development success for the country and its legal team. In July last year, German Klaus Sachs-headed tribunal imposed the massive penalty and held that the state had committed an unlawful expropriation under the Australia-Pakistan bilateral investment treaty.
Later, the TCC approached five different countries courts for the enforcement of the penalty. In November, Pakistan moved 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.
A hearing to confirm the stay order took place via video link in April. On Wednesday, the tribunal finally ruled in favour of Pakistan, confirming the stay on the enforcement of the award. The ICSID is still considering Pakistan's appeal against enforcing the penalty over its cancellation of the Reko Diq mining lease and a final hearing will take place in May next year.