Cabinet gives go-ahead to Reko Diq project

ISLAMABAD: Pakistan is set to meet the deadline of December 15 for signing the Reko Diq deal after the federal cabinet on Tuesday approved the project funding amid reservations expressed by government coalition partners Jamiat Ulema-e-Islam-Fazl (JUIF) and Balochistan National Party-Mengal (BNPM). 

The cabinet met here with Prime Minister Shehbaz Sharif in the chair.

In the light of the approval, the Pakistan government would sign the deal on December 15, a statement issued by the Prime Minister’s House late Tuesday night said.

President Arif Alvi also signed the Foreign Investment Promotion and Protection Bill 2022 on Tuesday. The bill, which was already passed by two houses of parliament on Monday, is aimed at giving protection to foreign investments in the country.

The Foreign Investment Promotion and Protection Bill 2022 was passed amid opposition from the JUIF and Balochistan National Party-Mengal.

The statement from the PM House said the Ministry of Petroleum and other concerned ministries were also directed to go ahead with signing the Reko Diq deal on December 15. “The federal cabinet asked secretary/additional secretary petroleum under Rules of Business 1973 to sign the deal on behalf of the Pakistan government,” the cabinet decided. The statement said that the cabinet was apprised that a Presidential Reference under Article 186 was filed to secure legal opinion and the Supreme Court on December 9, 2022 declared that process of reorganisation of the Reko Diq project funding plan was transparent. The apex court also observed that the agreements which are being signed in this connection are also as per law.

The cabinet was also informed that it was decided with the coalition that legislation made in parliament was confined only to the Reko Diq deal. The meeting also okayed regulatory framework for the Reko Diq Project Company.

The meeting also constituted a five-member committee, which would meet leaders of the coalition parties to remove their reservations. It was also decided certain amendments would also be made in consultation with stakeholders.

The five-member committee comprises Law Minister Azam Nazeer Tarar, Finance Minister Senator Ishaq Dar, Minister for Trade Syed Naveed Qamar and Minister for Economic Affairs Sardar Ayaz Sadiq.

In case the agreement is not signed by December 15, Pakistan would have to pay four million dollars per day as interest on the 5.9 billion dollars penalty imposed by the Inter Center for Settlement of Investment Disputes on July 12, 2019.

Meanwhile, Pakistan Democratic Movement (PDM) chairman and JUIF chief Maulana Fazlur Rehman and BNPM chief Sardar Akhtar Mengal expressed reservations for not taking them into confidence over the legislation regarding Reko Diq project.

According to sources, the PDM chairman met the BNP chief in which matters pertaining to the overall political situation of the country and Balochistan came under discussion. In this regard, sources said that both leaders, while expressing concern for not being taken into confidence over the Reko Diq legislation, agreed on adopting joint political strategy.

Both the leaders called the Foreign Investment Protection and Promotion Bill against the 18th Amendment.

Earlier on Tuesday, the BNPM chief, a key ally of the Centre’s ruling alliance, was reportedly displeased with the government over the recent legislation in connection with the Reko Diq project.

Sources claimed that Mengal, who was considering parting ways with the ruling coalition, had summoned a meeting of BNPM’s core committee to discuss the recent developments and future plan of action.

Meanwhile, Balochistan Chief Minister Mir Abdul Quddus Bizenjo said no one would be allowed to politicise the Reko Diq project, days after the Supreme Court declared the new deal with a foreign company legal.

Bizenjo in a media talk made it clear that the provincial taxes on the copper and gold mine project would go to Balochistan. He vowed not to give in the powers granted to the province after the 18th Amendment to the Constitution.