Contributions of Pakistan Army in Settling key Disputes for socio-economic development of Pakistan


Over time the armed forces of Pakistan have contributed a lot to settling key disputes in the Socio-economic development domain for the collective good of the people of Balochistan and Pakistan. Karkey Karadeniz Electrik Uterim dispute settlement is one of the examples of the Pakistan Army’s efforts towards helping the government for the economic revival of Pakistan.

A Turkish company namely Karkey Karadeniz Electrik Uterim (Karkey) was found involved in corruption, a core committee comprised of civil and military leadership led to the uncovering of evidence of corruption in Turkey, Switzerland, Lebanon, Panama, and Dubai (the UAE). This evidence was presented to the International Centre for Settlement of Investment Disputes (ICSID) Tribunal by the Core Committee. With consistent engagements at the international and national level, the Pakistan Army leadership played its pivotal role in amicably resolving the Karkey dispute while saving Pak USD 1.2 billion penalties imposed by ICSID. If the dispute had not been settled and Pakistan would have paid the amount, Pakistan’s GDP would have shrunk by nearly 2% and Pakistan would have defaulted on its international obligations.

While acknowledging the efforts of those who played an important part in the settlement, on August 14, 2020, the President of Pakistan conferred the civil award of Sitara-e-Imtiaz to three officers of ISI, who played a pivotal role in the successful settlement of the Karkey dispute.

Due to the Army’s countless efforts under the leadership of COAS, Pakistan was not only saved from the $11 billion penalty in the Reko Diq case but was also successful in reconstituting a project aimed at excavating huge gold and copper reserves from the sites in Balochistan. The Reko Diq agreement was a result of COAS’ personal efforts as he convinced all parties to a National Consensus and played a key role in settling the dispute.

The Reko Diq agreement has been finalized after several rounds of negotiations over the past three years. Reko Diq will potentially be the largest gold & copper mine in the world. It will liberate Pakistan from crippling debt & usher in a new era of development & prosperity.

Reko Diq will prove to be a game-changer for Federal, Provincial Governments and the people of Balochistan. It shall not only restore an investment-friendly image of Pakistan but will also accrue major economic benefits, and development of indigenous mineral exploration capability, and will result in a momentous socio-economic boost for the people of Balochistan.

The new deal entails the following socio-eco advantages for the people of Balochistan:

The government of Balochistan’s share will be paid by the Government of Pakistan for a long-term revenue stream to Balochistan.

The project will create Direct job opportunities for approximately 8000 skilled and non-skilled people while 12000 indirect jobs will also be created.

Barrick Gold will invest 1 % (approx Rs 160 Bn) in social uplift and Subsequently 0.4% of revenue per annum in Corporate Social Responsibilities in the local area, major socio-economic gains for the People of Balochistan.

The exploration activity will also result in the activation of the CPEC routes and ports: import/export and transportation of materials.

Development of new infrastructure includes trade routes, improved connectivity, and expansion in trade corridors with attendant advantages of CPEC projects in areas.

All in all dividends of the Reko Diq project will help in uplifting the socio-economic development of Balochistan and Pakistan.

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