The Economic Coordination Committee (ECC) of the Cabinet has deferred a proposal by the Ministry of Maritime Affairs (MoMA) regarding arbitration between the Port Qasim Authority (PQA) and the Pakistan International Bulk Terminal (PIBT) in association with the Reko Diq Mining Company (RDMC), citing unresolved differences between the parties.
Business Recorder reported that the ECC directed the ministry to hold further consultations with stakeholders and resubmit a clear framework for consideration.
The dispute stems from the draft Supplemental Implementation Agreement (SIA) and a related Side Letter between PQA and PIBT, covering the handling and export of copper, gold, and other minerals from the Reko Diq project through Port Qasim.
While PQA insists that arbitration be conducted under Pakistani law in Karachi, PIBT and RDMC have proposed proceedings under the London Court of International Arbitration (LCIA) in the UK. The PQA Board, in its September 18 meeting, recommended retaining domestic arbitration for consistency with existing contracts and the local nature of both parties.
The Attorney General’s office later advised that the arbitration clause could proceed as drafted, provided that references to “successors or assignees” were limited to RDMC and its related entities. However, the ECC opted to postpone a final decision until a revised framework is submitted.
The project—approved on a Build-Operate-Transfer basis in 2010—was initially limited to handling coal, clinker, and cement. Expanding it to include copper and other minerals under the Reko Diq export plan requires amendments to the Implementation Agreement and compliance with Public Procurement Regulatory Authority (PPRA) rules.
MoMA stated that the interim export plan was proposed due to limited infrastructure at Gwadar Port. The ECC reiterated that any future framework must ensure due diligence, transparency, and value for money before approval.
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