Senate passes change in foreign investment law

Act’s scope limited to 'qualified investment' in Balochistan’s Reko Diq project

ISLAMABAD:

 

The Senate on Friday passed a bill for introducing a change in the recently approved foreign investment law, limiting its scope to “qualified investment” in Balochistan’s Reko Diq project -- in a bid to address the reservations raised by the allies in the PML-N-led federal government.

Earlier this week, the Foreign Investment (Promotion and Protection) Bill, 2022 flew through the parliament as the Senate and National Assembly gave their approval to it.

The legislation guaranteed protection for foreign investment in the country and paved the way for the country to ink a final deal with Barrick Gold for the revival of the Reko Diq gold and copper mining project.

The government tried to solicit its allies’ nod but failed as the PPP Senator Raza Rabbani and National Party’s Tahir Bizenjo raised their hands in objection to the law when presented in the upper house while the BNP-M and JUI-F opposed the bill in the lower house.

The government’s move created cracks in the ruling coalition as the allies claimed that the legislation usurped the rights of the province over its resources.
They pledged not to give in the powers granted to the provinces after the 18th Constitutional Amendment.

The PML-N first assured the vexed allies during the NA session on Tuesday and after a cabinet meeting held later in the day that the legislation would be amended to address their concerns.

On Friday, Finance Minister Ishaq Dar presented the Foreign Investment (Promotion and Protection) Amendment Bill, 2022 in the Senate.

The bill read that the law was being amended to specify that even though it applied to the entire country, however in Balochistan it should only apply to the “qualified investment” of the Reko Diq project.

It added that the purpose of the amendment was to clarify the scope and application of the Foreign Investment (Promotion and Protection Act), 2022.
The bill will also need the nod of the lower house to come into effect.

It was passed by the upper house amid the opposition’s chaos in a repeat of what happened when the original law was given the nod.

PTI senators surrounded Senate Chairman Sadiq Sanjrani’s dais, shouting slogans.

They demanded the release of arrested PTI Senator Azam Swati and the issuance of his production order.

The Senate also unanimously adopted a resolution felicitating Qatar’s Emir Tamim bin Hamad Al Thani and its people for successfully hosting the FIFA World Cup 2022 in their country.

The resolution moved by Senator Sarfraz Bugti stated that arrangements for the world cup were exemplary.

It added that Qatar had provided the best available facilities to visitors and all the teams.

It read that the House condemned “all deliberate, malicious and negative propaganda” instigated against Qatar for holding the successful event.

The resolution added that the people of Pakistan were proud of the State of Qatar and its people as it is the first Muslim and Gulf state to host the FIFA World Cup.

Qatar has faced criticism on the basis of its treatment of migrant workers and the lack of rights for women and the LGBTQ community.

Pakistan, however, has stood in solidarity with Qatar. Prime Minister Shehbaz Sharif had also condemned the "barrage of propaganda" against the country hosting the FIFA World Cup.

Later, the session was adjourned for an indefinite period.