Govt to probe termination of BIT with Sweden

According to The Express Tribune, the federal cabinet has set up a committee to investigate how a notice terminating the Bilateral Investment Treaty between Pakistan and Sweden came to be issued. Ministry of Commerce sources said the Board of Investment raised the matter at a recent cabinet meeting, where members warned the move could hurt foreign investment and urged that the notice be withdrawn before it takes effect.

The panel, headed by Commerce Minister Jam Kamal Khan, will establish the reasons behind the notice and the approval process that led to it. The treaty, signed in 1981, was the subject of a unanimous cabinet decision to cancel the termination notice and begin talks to update its provisions. Separately, the prime minister asked for guidelines that would govern any future release of such notices.

Prime Minister also asked the SIFC and the Board of Investment to prepare a revamp plan for the BOI, which is due for his approval after two weeks. A new Committee on Bilateral Investment Treaties will examine outcomes of treaty terminations with 25 countries and prepare a draft BIT policy covering investment protection and dispute resolution.