Major win for Pakistan and PIA as Virgin Islands court unfreezes airline's assets

In a major win for Pakistan International Airlines (PIA), the High Court of Justice in the British Virgin Islands (BVI) has withdrawn its earlier decision regarding the attachment of the airline’s offshore assets in the Reko Diq case.

"A short while ago judgment was announced by British Virgin Island High Court. Great legal victory for PIA and Pakistan. The order was passed earlier on the request of TCC which was seeking enforcement of the Reko Diq award. All orders passed against PIA earlier are now recalled by the Court. Receiver removed from Roosevelt hotel, NY and Scribe Hotel, Paris. Cost of litigation also awarded," said a statement issued by the Attorney General for Pakistan (AGP) office on Tuesday.

In December last year, Justice Gerhard Wallbank of the BVI High Court had attached certain assets of PIA in the Reko Diq case.

Roosevelt Hotel in Manhattan, New York, and Scribe Hotel in Central Paris were attached to the case by the court which meant PIA could not sell the two hotels.

PIA described the order as a major win for Pakistan. "Justice prevails! By the grace of Allah and with the prayers of all our countrymen, courts in BVI decide in favor of PIA, releasing all hard-earned assets i.e., Roosevelt NYC & Scribe Paris. Great victory for PIA and Pakistan. We won this together," PIA said in a statement.

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In 2019, the Inter­national Centre for Settle­ment of Investment Disp­utes (ICSID), had announced a huge award of $5.976 billion against Pakistan in the Reko Diq case.

The management of the Tethyan Copper Company (TCC) had claimed $11.43bn in damages from Pakistan. The company had filed claims for international arbitration before the ICSID in 2012.

Despite the release of the PIA's assets in the case by the BVI court, a $6 billion penalty against Pakistan will still be intact.