The much-needed seal of Bilateral Investment Treaty (BIT) between Pakistan and the United States (US) has been delayed due to financial and defence related issues which were yet to be work out, sources say.
The seal was earlier expected to be signed during on going financial year 2012-13 but now it has been delayed for unspecific period.
A high level official of Board of Investment (BOI) told this agency that international agreements were not taken place over night as it was time taking process which may take decades.
“Pakistan does not seem that the Bilateral Investment Treaty between both countries could be sealed during current financial year 2012-13 as there were many financial and defence related issues which were yet to be sort out,” said the official.
Talks on BIT started in 2004 and continued until 2006 but many issues remained unresolved. The biggest stumbling block was arbitration rules in case of any dispute.
After a five-year deadlock, the BOI took the initiative to restart the negotiation process in 2011. According to the BOI, consultation with local stakeholders also picked up momentum to firm up Pakistan’s position on different issues.
