Economic Coordination Committee (ECC) of the Cabinet is expected to approve technical supplementary grant of Rs 420 million to pay court fee and fee to foreign counsel in case of Dr. Hilal Hussain Al-Tuwairqi and Al-Ittfaq Steel Products Company Limited, sources close to Finance Advisor to Prime Minister told Business Recorder. M/s Al-Tuwairqi Steel Mills Limited (TSML), a project of Foreign Direct Investment (FDI) by Al-Tuwairqi Group of Companies of Saudi Arabia, was established at Bin Qasim, Karachi, over an area of 220 acres of land.
A Memorandum of Understanding (MoU) was signed with the Government of Pakistan on May 26, 2004 for supplying natural gas to the company. As regards the tariff, gas was to be supplied to the project company on the same industrial rate as applicable for other such industries subject to revision from time to time. The tariff proposal contained in MoU was excluded in Implementation Agreement (IA) signed on June 8, 2007 between the GoP and M/s TSML due to observations from Finance Division and the Ministry of Petroleum and Natural Resources.
Proceedings have been initiated against Pakistan in the Permanent Court of Arbitration (PCA) London invoking article 17(2) of the agreement for promotion, protection and guarantee of investments among member States of the Organisation of the Islamic Conference, 1981 by M/s TSML for redressal of their grievances. The incumbent government and M/s Tuwairqi Steel Mills Limited (TSML) have discussed the revival plan of the entity with a fresh injection of $ 700 million. M/s TSML is seeking relaxation in duty on billets and subsidy on gas after three years of operating the Mills.