Business

Pakistan agrees with Riyadh, Doha to go for international arbitration on investments

Published

4 months ago

Farwa

Domestic forums to be given 8 months to provide solution.
In case of non-resolution, Doha and Riyadh can approach PCA/ICSID.
SIFC gives approval in principle for the establishment Nidra.

ISLAMABAD: Pakistan agreed to allow the Kingdom of Saudi Arabia and Qatar to approach the Permanent Court of Arbitration (PCA) or International Centre for Settlement of Investment Disputes (ICSID) if any issue they face in the multibillion-dollar investments they plan to make in projects, reported The News on Wednesday.

The two sides are holding talks on the exact valuation of the Reko-Diq project and Manara Minerals is finalising the term sheet and valuation.

The Manara Minerals Investment Company is a new venture between the Saudi Arabian Mining Company (Ma’aden) and the Public Investment Fund (PIF) that will invest in mining assets globally for Riyadh and support the development of resilient global supply chains. While on Pakistan’s side, the Reko Diq Mining Company (RMDC) has been tasked to hire levies and payment mechanisms defined for Balochistan.

“Pakistan has negotiated to include a graduated approach for settlement of investment disputes between the state and investors. Through this arrangement, there will be a mandatory period of eight months to get the dispute resolved at the domestic forums,” sources told the publication.

An official said that in the case of non-resolution of disputes, it was agreed that recourse could be made to the PCA or ICSID as international forums of arbitration.

The investment chapter can be annexed with a Free Trade Agreement (FTA) to be signed with GCC (Gulf Cooperation Council) countries, including the process of investor and state dispute settlement through the ICSID as agreed with Saudi Arabia and Qatar, which was also shared with the GCC Secretariat.

GCC has told Islamabad that the legally cleansed draft will be shared with Pakistan in due course.

In this regard, the Pakistani envoy has been tasked to follow up with the GCC Secretariat and give an update before the next Special Investment Facilitation Council (SIFC) meeting.

However, on the Aramco Refinery Project, it has been decided to follow up on the project to materialise it.

SIFC greenlights Nidra

In another major development, the SIFC has given approval in principle for the establishment of the National Industrial Development & Regulatory Authority (Nidra).

The modalities of the authority will be finalised after consultations are held with the provinces.

The Board of Investment (BOI) has been tasked to launch the process of legislation for the proposed model under Article 147 in consultation with the provincial governments and stakeholders, including formulation of a framework for the unification of all existing economic and industrial zones by March 2024.

Till the legislation is passed, the proposed model will be worked on in consultations with the provincial governments.

Business

Pakistan’s gold prices are still declining; see the most recent

Published

3 hours ago

Farwa

The price of 10-gram gold reduced by Rs943 to settle at Rs207,733, while the price of gold dropped by Rs1200 to close at Rs242,300 a tola, according to the Sindh Sarafa Jewellers Association.

In the global market, the price of the precious metal fell by $10 to $2,349 per ounce, resulting in losses.

At 04:48 GMT, the spot price of gold had dropped by 0.2% to $2,354.77 per ounce. In the previous session, prices reached a two-week high.

American gold futures dropped 0.6% to $2,361.

Spot silver decreased by 0.4% to $28.03 per ounce, while palladium remained steady at $978.03 and platinum decreased by 0.1% to $992.89.

Business

Pakistan and the IMF begin talks for a new loan.

Published

4 hours ago

Farwa

Pakistan is requesting a $6 to $8 billion bailout package from the international lender over the next three to four years to address its financial troubles.

A mission team led by Nathan Porter, the IMF’s Mission Chief in Pakistan, is meeting with a Pakistani delegation led by Finance Minister Muhammad Aurangzeb.

According to sources familiar with the situation, Islamabad may face more difficult options, such as raising power and gas bills.

Mr. Aurganzeb informed the IMF team that the country’s economy has improved as a result of the IMF loan package, and Islamabad is ready to sign a new loan programme to further develop.

The IMF mission expressed satisfaction with Islamabad’s efforts to revive the country’s struggling economy.

The IMF praised Pakistan’s economic growth in its staff report earlier this week, but warned that the outlook remains challenging, with very high downside risks.

The country nearly avoided collapse last summer, and its $350 billion economy has stabilized since the end of the last IMF program, with inflation falling to roughly 17% in April from a record high of 38% last May.

Business

Petrol prices are likely to drop significantly beginning May 16.

Published

4 hours ago

Farwa

According to sources, the government is set to decrease petrol prices by Rs 14 per litre and diesel prices by Rs 10 on May 16 for the next fortnight’s revision.

Last month, the government reduced the price of fuel and high-speed diesel by Rs5.45 and Rs8.42 per fortnight, respectively.

The current fuel price is Rs288.49 per litre, while the HSD price is Rs281.96.

Meanwhile, oil prices fell further on Monday, as signs of sluggish fuel consumption and comments from U.S. Federal Reserve officials dimmed optimism for interest rate reduction, which may slow growth and reduce fuel demand in the world’s largest economy.

Brent crude prices down 25 cents, or 0.3%, to $82.54 a barrel, while US West Texas Intermediate crude futures fell 19 cents, or 0.2%, to $78.07 per barrel.

Oil prices also declined on signals of poor demand, according to ANZ analysts, as gasoline and distillate inventories in the United States increased in the week before the start of the driving season.

Refiners throughout the world are dealing with falling diesel profitability as new refineries increase supply and warm weather in the northern hemisphere and weak economic activity reduce demand.