ISLAMABAD: Pakistan has won the arbitration initiated by Tuwairqi Steel against the federation at the Permanent Court of Arbitration in The Hague, Netherlands, the government said in a statement on Tuesday.
The claim was brought by the Saudi investors, namely Dr Hilal Hussain Al Tuwairqi and Al Ittefaq Steel Products Company Ltd, under the Organisation of Islamic Cooperation (OIC) investment agreement.
Pakistan was represented in the proceedings by Law Minister Ahmad Irfan Aslam, who was the head of the international disputes unit at the time. Tuwairqi Steel was represented by Cherie Blair of Matrix Chambers.
According to an official statement, the dispute arose when the claimants initiated arbitration proceedings against Pakistan in February 2018, alleging breaches of the OIC investment agreement.
The case centred on the claimants’ investment in a steel-production facility in Port Qasim, Karachi, alleging that Pakistan failed to honour sovereign assurances, including the committed supply of natural gas at a certain ore-determined tariff.
The proceedings saw a detailed procedural history, which encompassed the formation of the tribunal under the OIC investment agreement and involved numerous applications and arguments made during the course of the dispute.
The tribunal stated in its final decision that the country did not breach its obligations under the OIC investment agreement and comprehensively dismissed all claims brought against the government by the claimants, the statement said. Additionally, the tribunal has directed the claimants pay Pakistan some 210,788 euros in administrative costs, besides 1.55 million pounds, 117,941 euros and $62,415 in legal expenses.
It also directed the Permanent Court of Arbitration to refund the unutilised deposit amount of 96,839 euros to the respondent.
“As Pakistan emerges victorious from this extensive legal battle, the decision not only affirms the country’s commitment to international investment agreements but also sets the stage for a more positive environment for future investments,” the statement said.
