ISLAMABAD: President Dr Arif Alvi has approved the filing of a reference in the Supreme Court of Pakistan to get validation of the Reko Diq project.
The president has approved a summary for filing the reference under Article 186 of the Constitution. The reference will be filed in court by Attorney General of Pakistan Ashtar Ausaf.
A statement by President House said the Apex Committee, headed by Minister for Finance and Tethyan Copper Company Pakistan (Private) Limited shareholders had agreed to a framework for settlement and revival of the Reko Diq Project in March 2022.
The reference has asked if the deal with the complainant company, Tethyan Copper Company Pakistan (Pvt) Ltd is compliant with the apex court’s earlier order or public policy prevent the government from entering into the Reko Diq Agreements or affect their validity.
The reference also asked if the deal will be valid and constitutional if the proposed Foreign Investment (Protection and Promotion) Bill 2022 is enacted.
Last week, the federal cabinet approved filing a presidential reference in the Supreme Court to get validation of the new Reko Diq project deal.
The cabinet meeting chaired by Prime Minister Shehbaz Sharif approved to file the presidential reference and also receive a parliamentary approval of the Reko Diq deal.
Attorney General for Pakistan Ashtar Ausaf Ali is likely to file the reference. The chief justice is expected to form a five-judge larger bench to hear the presidential reference.
Canada-based mining group Barrick Gold Corporation had asked the government to get the Reko Diq deal stamped by the parliament and the Supreme Court for the long-term sustainability of the company’s investment in the project.
According to the settlement, 50% of the new project’s shares would be owned by Barrick Gold, while the remaining shares would be owned by Pakistan, divided equally between the Centre and the Balochistan government.
The federal government’s share of 25% will be divided equally among three state-owned entities — the Oil and Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan Limited (GHPL).
Baluchistan’s share shall be held by a company wholly-owned and controlled by the provincial government. The Balochistan government will not incur any expenses in the development of the mines.
In developing the project, nearly $10 billion will be invested in Balochistan, including $1 billion for social uplift projects such as roads, schools, hospitals and the creation of technical training institutes for mining
The investment will also create over 8,000 new jobs. The project will also make Balochistan the largest recipient of foreign direct investment in the country.
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