On Tuesday, as the federal cabinet gave its final approval for the contract to be signed before the deadline of December 15, disagreements among the parties in the ruling coalition regarding the restructuring of the Reko Diq copper-gold project in the Chagai district of Balochistan came to light.
The two main coalition parties of the government, the Jamiat Ulema-e-Islam-Fazl (JUI-F) and the Balochistan National Party-Mengel (BNP-M), boycotted the cabinet meeting, chaired by Prime Minister Shehbaz Sharif. The cabinet held a detailed discussion on the Reko Diq project.
A similar situation was seen in the Balochistan Assembly, where lawmakers lashed out at the government over the passage of a resolution in favor of the deal. A BNP-M member of the provincial assembly termed the resolution an attempt to usurp the rights of the people of Balochistan.
The JUI-F and the BNP-M protested in the federal cabinet meeting, saying that they were against the bill on the project because they were not taken into confidence regarding the matter. However, the government assured the coalition partners that their reservations were valid and that necessary amendments would be made soon.
In his opening remarks, Premier Shehbaz said that the government of Pakistan would ensure the protection of the rights of investors in all the investment projects, including the Reko Diq project, and all the promises made to them would be fulfilled.
The cabinet was informed that a presidential reference was filed in the Supreme Court under Article 186 of the Constitution for a legal opinion on the final agreements. The court gave its opinion on December 9, saying that the restructuring process was transparent.
The cabinet was told that the opinion of the Supreme Court had already been taken regarding the Foreign Investment (Promotion and Protection) Bill, 2022. The cabinet was also informed that it had been decided by the coalition parties that the legislation was to the extent of the Reko Diq project only.
In this regard, a five-member cabinet committee was formed to remove some legal obstacles. The committee included Law Minister Azam Tarar, Finance Minister Ishaq Dar, Commerce Minister Syed Naveed Qamar and Economic Affairs Minister Ayaz Sadiq.
The cabinet committee will hold talks with the leaders of the coalition parties and take them into confidence and address their concerns. It was also decided that the amendment would be made in consultation with the concerned parties.
During the meeting, the cabinet also approved the regulatory framework for the state enterprises and their special purpose vehicles, the government of Balochistan Special Purpose Vehicles, and the Reko Diq Project Company regarding its restructuring.
