ISLAMABAD: Board of Investment (BoI), has, reportedly contradicted the ministry of foreign affairs on a controversial Bilateral Investment Treaty (BIT) with the United States, saying Pakistan’s Ambassador, Sherry Rehman, was on board.
Sources in the BoI told Business Recorder that the board was mandated to negotiate and finalise BITs with other countries.
The sources said Chairman BoI’s visit to US was a planned official visit and not “an optional stopover from Canada” as stated by the Ministry of Foreign Affairs in its UO.
“Before proceeding to the US, MoS/Chairman BOI Salim Mandviwala held a meeting in Islamabad with Pakistan’s Ambassador to the US. The chairman’s meetings in Washington were also arranged by the Pakistan embassy,” the sources added.
During the stay in the US, Pakistan’s delegation headed by BoI’s chairman held discussions on BIT with a technical team of the US in the light of stakeholders’ suggestions/ input. The US side appreciated Pakistan’s point of view and a consensus BIT document was initialed, paving the way for further progress, the sources maintained.
BoI claimed that since 2011, BoI has been holding consultative meetings on unresolved issues with stakeholders. The ministry of commerce, as one of the major stakeholders, has already concurred with the initialed draft BIT, which is a normal practice and is done in BITs with other countries.
BoI further stated that the ministry of law, justice and parliamentary affairs had also vetted the draft.
A summary had been sent to the cabinet for approval of the draft BIT which, according to some analysts, was unlikely to be approved in its present shape.
The commerce ministry also expressed reservations and accused BoI of accepting a couple of conditions in the treaty (BIT), which are not only discriminatory but also Pakistan-specific. The commerce ministry maintained that some of the conditions that were accepted were against Pakistan’s interests, the sources added.
According to sources, the treaty document was shared with other stakeholders albeit without annexes pertaining to non-conforming measures, on March 16, and comments were sought with the caveat that in case no response is given by March 19, it would be construed as concurrence.
Commerce Ministry also claims that despite the short timeframe, it reiterated its support for concluding the treaty and simultaneously initiated a review of the document.
The sources said that Article 2 of the proposed BIT expanded the scope and coverage of the treaty to investments that already existed in the territory of “a party”, on the date of its entry into force. Thus US companies already having a presence in Pakistan would be entitled to avail benefits extended under this treaty, including compensation in case of any damages caused to them through any physical loss or new taxation measures.
“Investment decisions made by these companies were based purely on economic parameters and were not contingent upon the benefits now proposed to be extended through this treaty,” the sources quoted Commerce Ministry as saying in its letter.-MUSHTAQ GHUMMAN
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