Reko Diq project deal has been given approval by the Federal Cabinet which leads to the final signing of agreement on December 15. Reko diq project will get into its implementation phase, once the deal is signed.
PM Office Media Wing Information
It is stated in the press release that Federal Cabinet meeting was chaired by Honorable Prime Minister Shehbaz Sharif and other ministerial heads. The Reko Diq project agreement was discussed thoroughly. PM on behalf of the Government of Pakistan said that we will ensure protection of rights of the investors.
Moreover, Foreign Investment Promotion and Protection Bill 2022 was passed by President Arif Alvi amid opposition from two political parties. Furthermore, a decision of the ECC- Economic Coordination Committee taken on December 11, 2022 was also endorsed regarding Reko Diq projects’s funding plan.
Reko Diq Supreme Court Legal Opinion
SC in response to a presidential reference under Article 186 of the Constitution stated their legal opinion that the reconstitution process of the project was very transparent and all the agreements signed in this regard were legal under the relevant laws of the land.
The approval was reconsidered under the advice of Petroleum Division. Under Rules of Business 1973, the secretary/additional secretary petroleum division were given a go-ahead to sign the above discussed deal on behalf of the government of Pakistan.
The cabinet also approved the regulatory framework for the SOEs-state-owned enterprises and its SPVs-special purposes vehicles, the government of Balochistan SPVs and Reko Diq project company. With the consensus of all the allied parties, it was agreed that the legislation was related to the extent of the underlying project only.
Additionally, in order to remove certain legal issues, a five-membered cabinet committee comprising current Minister for Finance Ishaq Dar, Minister for Trade Syed Naveed Qamar and Minister for Economic Division Sardar Ayaz Sadiq was forged. The basic task of the committee would be to hold discussions with the leaders of the allied parties and remove their apprehensions by taking them on board in any relevant decision.
Lastly, ECC has approved two agenda items for Reko Diq project, causing it to start the implementation earlier than expected.