Pakistan: Government Triumphs in Tuwairqi Steel Legal Duel

Tuwairqi Steel
Tuwairqi SteelImage Source: Tuwairqi Steel

Synopsis:

Pakistan celebrates a legal victory as the government prevails over Tuwairqi Steel in an arbitration at The Hague's Permanent Court. Saudi investors alleged breaches of an investment agreement regarding a steel facility in Karachi. The tribunal dismissed all claims, ordering the claimants to pay €210,788 in costs and reimbursing Pakistan. This win highlights Pakistan's commitment to investment accords.

Article:

Pakistan emerged triumphant in a legal battle against Tuwairqi Steel at The Hague's Permanent Court of Arbitration. The dispute, initiated by Saudi investors, centered on alleged breaches of the Organisation of Islamic Cooperation (OIC) investment agreement.

Represented by Law Minister Ahmad Irfan Aslam, Pakistan faced claims brought forward in 2018 by Dr. Hilal Hussain Al Tuwairqi and Al Ittefaq Steel Products Company Ltd. The investors accused Pakistan of failing to honor commitments, particularly regarding the supply of natural gas at a predetermined tariff for a steel-production facility in Port Qasim, Karachi.

The proceedings underwent an extensive procedural journey, involving the formation of the tribunal under the OIC investment agreement. The tribunal's final decision favored Pakistan, asserting that the country hadn't violated its obligations. It dismissed all claims made by the investors.

Additionally, the tribunal directed Tuwairqi Steel to pay €210,788 in administrative costs, along with £1.55 million, €117,941, and $62,415 in legal expenses. Furthermore, it ordered the reimbursement of an unutilized deposit of €96,839 to Pakistan.

The government's statement following the victory emphasized Pakistan's dedication to international investment agreements. This win is hailed as a catalyst for fostering a favorable investment environment in the country, reinforcing its commitment to legal and binding accords.

Conclusion:

Pakistan's successful defense against Tuwairqi Steel in The Hague's arbitration reaffirms its adherence to international investment commitments. This outcome not only clears the allegations but also showcases the nation's dedication to creating an inviting atmosphere for prospective investments. The awarded costs and reimbursements stand as a testament to the legal soundness of Pakistan's stance in this international legal tussle.

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