Pakistan to pay $800 bln in fine to Karkey
The International Centre for Settlement of Investment Disputes (ISCID), an arm of the World Bank, fined the Pakistani government up to $800 million in an arbitration case launched in 2013 by Karkey Black Sea Energy Group (Karkey), a Turkish firm that runs power generation sea vehicles.
The ISCID arbitration court made a unanimous decision, considering Karkey’s allegations that the Pakistani government violated the Encouragement and Mutual Protection of Investments Treaty that the two countries had signed.
The arbitration court ruled Pakistan disseized Karkey’s assets and discretionary income. The court rejected the defendant’s objections to the ruling.
Pakistan now has to pay Karkey their losses, repair costs for the seized ship as well as other compensations the company suffered in the process. In 2014, ICSID had made an interim decision and ruled for Pakistan to release Karkey’s “Karadeniz Powership Kaya Bey” ship.
Pakistan is also bound to pay interests, based on Karkey’s business terms. Karkey operates a 12-ship energy fleet across the world.