“New Reko Diq Deal” A Historical Success of Pakistan!

 

New agreement for Reko Diq project.

                One of the mistakes done to Pakistan’s Economical Future was the deal done on the goldmines of District Chaghi of Balochistan. The defective deal became a headache for the people of Pakistan and Pakistan in spite of bringing a bright future. The issue was highlighted in 2006 when the details of the deal signed in 1993 with a foreign company were disclosed in 2006. The deal was challenged in Balochistan High Court for being an illegal Deal because it was signed without fulfilling the legal requirements. There was no advertisement calling the bids so that no one can compete in the bidding against the desired company. Before Balochistan High Court’s decision Supreme Court of Pakistan, took suo moto action, upholding the status-quo order by Balochistan High Court. In 2011, the foreign company contacted International Centre for Settlement of Investment Dispute (ICSID) of the World Bank and claimed 11.43 billion USD as compensation from Pakistan in case of non-execution of the deal by Pakistan. The company claimed that it has invested 220 Million Dollars in the project. In 2013, Supreme Court gave a decision against the deal between the Provincial Govt. of Balochistan and the company, ordering to halt all the operations on the Reko Diq site. Foreign Company contacted British Virgin Islands High Court; the situation was that Pakistan was being threatened either to pay the claimed compensation. It was clear that Pakistan will have to pay the penalty of 11.43 billion dollars.

                Such a big penalty on a country already indebted to International Monetary institutions even in easy installments was no less than a torment. Pakistan has to beg in front of friendly countries for the loan of 2 billion dollars, crush its public in heavy indirect taxes to secure loans from IMF; the penalty of 11.43 billion USD might have rendered the country bankrupt. Prime Minister Imran Khan decided to free the country from this difficult situation and started negotiations with the Foreign Company. Tayib Erdogan of Turkey also played an important role. At least a new deal was chalked out, the company not only forego its compensation claims but also agreed to invest 10 billion dollars. In the presence of Imran Khan, the new deal was signed on 23 March 2022 in Islamabad. According to the Economists, this new deal will create 8000 jobs in Balochistan which help decrease unemployment and poverty in Balochistan. This will negate the propaganda of anti-Pakistan forces regarding poverty and under-development in Balochistan. This propaganda is being used by foreign-funded Baloch warlords for converting the people of Balochistan into terrorists. These are the culprits who have stopped the development in Balochistan and posed the under-development as a reason for the separation of Balochistan.

                On the one hand, the CPEC project is being completed rapidly; Gwadar port has joined the people of Balochistan with the outer world. The doors of education are being opened for the people of Balochistan. They will be able to educate their children and enjoy better health services and standards of living. Before this, all these facilities were available to the landlords and their children; the children of these Baloch landlords studied in the western countries, and preferred to live there; they came to Pakistan just to collect funds. They incited the people of Balochistan that the reason for their being under-developed is being a part of Pakistan. Baloch Chiefs transferred the funds given by the Federation in their personal accounts in spite of using these funds on development projects. There was no one to question the use of these funds, the Federal govt. paid these funds to secure the electoral votes from the members of the National Assembly belonging to Balochistan.

                Now the situation has changed. According to the deal, 50% of the profit will go to the Foreign Investment Company while 25% will be given to the Federation and 25% to the Provincial govt. of Balochistan. This will open new horizons of development for the people of Balochistan. No doubt the new deal of Reko Diq regarding the extraction of Copper and Gold in Balochistan will change the fate of Pakistanis, especially those living in Balochistan.

Urdu Copy

Written by Khalid Baig,

Published in Daily Nawa-i-Waqt,

Date: 26 March 2022.