Pakistan has emerged victorious in a legal dispute with a Saudi steel company and its investors at the Permanent Court of Arbitration (PCA) in The Hague, Netherlands.
The Saudi company, Tuwairqi Steel, and its investors, Dr Hilal Hussain Al Tuwairqi and Al Ittefaq Steel Products Company Ltd, had initiated arbitration proceedings against Pakistan in February 2018, alleging breaches of the Organisation of Islamic Cooperation (OIC) investment agreement.
The dispute arose when the claimants accused Pakistan of failing to honour sovereign assurances, including the committed supply of natural gas at a certain predetermined tariff, for their steel-production facility in Port Qasim, Karachi.
The arbitration tribunal, which was formed under the OIC investment agreement, rejected all the claims by the Saudi company and ordered them to pay Pakistan over 1.8 million euros in costs and legal fees, according to an official statement.
The tribunal also instructed the PCA to refund 96,839 euros of unutilised deposit to Pakistan.
The government, in a statement, hailed the decision as a victory for Pakistan’s legal position and a boost for its investment climate. “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,” it said.
