ISLAMABAD: The Apex Council of Special Investment Facilitation Council (SIFC) has directed Ministry of Law and Justice to disallow public sector companies to approach international arbitration, well-informed sources told Business Recorder.

At a recent meeting, co-chaired by Caretaker Prime Minister Anwaar ul Haq and Chief of Army Staff General Syed Asim Munir arbitration between SNGPL and NPPCL in London Court of International Arbitration was discussed.

The Apex Council observed that such a situation must not arise wherein state-owned enterprises invoke international arbitration against each other. The dispute ought to be resolved domestically. Minister for Law and Justice was directed to lead a committee which would examine the matter and suggest resolution and recommendations be presented at the next AC meeting.

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A committee comprising Ministers for Finance, Privatisation, Law and Justice and Information Technology (IT) to negotiate with M/s Etisalat for resolution of pending issues.

The sources said milestones for containing fiscal deficit were presented in 6th AC meeting which may be further discussed at Working Group level and inter-governmental negotiations may be initiated.

Governor, State Bank of Pakistan (SBP) has been directed to explore possibility of opening Letters of Credit (LCs) and to provide an update in the next AC meeting.

According to sources, Secretary Finance, Governor SBP and Chairman, Water and Power Development Authority (Wapda) would present milestones with timelines for floating of international and domestic Green Bonds and debt swap for Wapda.

Finance Ministry, SBP, Ministry of Commerce and Petroleum Division have been directed to present a progress report on removal of impediments on the following items to reduce the impact of dollar volatility on the economy in the next AC: (i) settlement of PKR for imports and exports as per SBP manual; (ii) settlements in RMB; (iii) settlement through Asian Clearing Union (ACU); (iv) cash over counter facility to be restored; (v) transit through Iran/Afghanistan, to resolve issues of banking clearance; (vi) banking transaction to be monitored and discourage hoarding of dollars; and (vii) barter trade mechanism to be operationalised.

Copyright Business Recorder, 2023