The multi-million dollar legal dispute between the Pakistani government and Turkish energy company titled “Karadeniz Holding’s subsidiary” KARKEY’s final hearing by the international arbitration will take place by October 08, just 10 days after the Pakistani counsel’s submission of Pakistan’s defense on September 29. According to details, the decision was finalised in last hearing that took place on last Monday and was taken in large part due to the consensus for the need of an urgent decision on the provisional measures requested by KARKEY. A KARKEY spokesman while making comments over the issue said, “Increased economic cooperation between Turkey and Pakistan is in both the countries’ best interest.” He noted, “The unnecessary dispute between Pakistan and Turkish company has clouded the climate for bilateral cooperation and damaged investor and business confidence.” “We hope it can be settled quickly and fairly preventing it becoming an obstacle to successful future Turkish collaboration with the government of Pakistan in the energy and other sectors,” expressing hope to get the issue settled soon the spokesman concluded. According to media reports, the prime minister inked several economic cooperation agreements with Turkish counterparts and is sought a $300m credit facility from the Export Credit Bank of Turkey. As the premier during his visit reportedly sought a framework agreement between Turkey and Pakistan on power generation and distribution, as well as enhancing cooperation agreement between state-owned oil and gas companies and Turkish equivalents, however, the current dispute between government and the Karadeniz Holding’s subsidiary KARKEY are proving a major restriction for Turkish investors to invest in Pakistan. Since April 2012, four of KARKEY’s vessels including two Powerships – floating power plants- and Turkish crew of 30 are being detained by government authorities in national waters. Unable to reach an out of court settlement, KARKEY has taken its case for compensation and damages to the World Bank-affiliated International Centre for Settlement of Investment Disputes (ICSID) in Washington DC.
Intl Arbitrary court to hold final hearing by Oct 8
