Senate limits foreign investment law in Balochistan to Reko Diq

Approves amendment limiting legislation’s scope to ‘qualified investment’ for Reko Diq copper and gold mining project

The Senate passed on Friday a bill for amendments to a recently approved foreign investment law, seeking to limit the legislation’s scope in Balochistan to “qualified investment” for the Reko Diq copper and gold mining project.

The law, titled Foreign Investment (Promotion and Protection) Act, 2022, was passed by both houses of parliament on Tuesday and paved the way for a settlement deal between the government and Canadian company Barrick Gold for the reconstitution, and eventually, revival of the long-stalled mining initiative in Balochistan’s Chagai district. It aims to protect investors from unnecessary court proceedings and other hassles and has been a cause of discord within the ruling coalition, with several parties, including key allies BNP and JUI-F, raising objections that it is against the rights of people of Balochistan.

To placate the allies, ministers from the PML-N, which leads the ruling coalition, assured first during the National Assembly (NA) session on Tuesday and later after a cabinet meeting the same day that the law would be amended to address their grievances. Subsequently, Finance Minister Ishaq Dar presented the bill for amendments to the law in the Senate on Friday. The bill which “extends to the whole of Pakistan”, be amended to specify that “for … Balochistan, it should only apply to the qualified investment of Reko Diq project as mentioned in schedules and annexures of this act”.

The amendment bill added: “The purpose of the subject amendment is to clarify the scope and application of the Foreign Investment (Promotion and Protection Act), 2022.” The amendment has to be approved by the NA before it is finalised.

The bill for the amendment was passed amid the opposition’s uproar in a repeat of Senate proceedings from Tuesday when the original Foreign Investment (Promotion and Protection) Bill, 2022 was approved by the upper house of parliament.

Meanwhile, the historic agreement of the Reko Diq project has been inked with the representatives of Barrick Gold and Antofagasta PLC, Press Secretary to Chief Minister Balochistan said. It is the largest foreign investment agreement in the history of Pakistan, with a total cost of 8 billion dollars. With the agreement signed, the fine imposed by the International Court of Arbitration has also become ineffective. Press Secretary to CM noted that the contract will be effective from December 16, 2022, and the company will start work immediately.

Imran’s helicopter rides

Also, Helicopter expense details of PTI Chairman Imran Khan’ were presented in the Senate by the Cabinet Division during a session Friday. According to the Cabinet Division’s written reply submitted to the upper house of parliament, the expenses incurred on the former prime minister’s helicopter rides from January 2019 to March 2022 were more than Rs430 million. It stated that Khan completed 1,579 VVIP mission hours on the chopper during the said time.