The International Center for Settlement of Investment Disputes (ICSID) has imposed a whopping penalty of $5.976 billion against Pakistan in its 700-page ruling. The ICSID awarded a $4.08 billion penalty and $1.87 billion in interest.
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The International Centre for Settlement of Investment Disputes (ICSID) is an international arbitration institution to settle legal dispute resolution and conciliation between international investors. The ICSID is part of and funded by the World Bank Group and is an autonomous, institution.
Sources privy to the development claim that Pakistan has decided to challenge the decision before an international court by filing a revision application, sources said. Tethyan Copper Company’s (TCC) management had claimed $11.43 billion in damages.
The company filed claims for international arbitration before the ICSID in 2012 after the Balochistan government turned down a leasing request from the company.
The lawsuit between the government of Pakistan and the international company lasted for as many as seven years. The Supreme Court of Pakistan under its chief justice of Pakistan Iftikhar Chaudhry terminated the deal in 2013. The tribunal, earlier, held the view that Pakistan is mandated to pay damages for breach of contract.