BITs with EC, South Asia to continue

Pakistan has decided to continue its bilateral investment treaties with the European Community (EC) and South Asian countries which pose no risk of investor state dispute. The government has also decided to engage with the Malaysian side to add, amend and modify certain provisions relating to the definition of investment. Sources told the Express Tribune that the government has approved a strategy for Treaties with Investment Provisions (TIPs) to avoid the risk of legal dispute in international courts. In the past, the government of Pakistan had to face legal battles in international courts for different cases including Rekodiq, in which the investors had used TIPS under bilateral investment treaties signed with different countries. In order to avoid this risk in the future, the government has decided to avoid future bilateral investment treaties (BITs) and has also cancelled agreements already signed with different countries which posed a serious threat of legal action. Earlier, the cabinet was informed that foreign investors have filed 10 cases so far in different international arbitral forums under TIPs.