ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Pakistan struggles to settle delayed mining license dispute

Islamabad seeks to avoid billions in penalty and interest, but local opposition grows

Empty trailers meant to house workers at a gold and copper exploration site in the Pakistani province of Balochistan. The International Center for Settlement of Investment Disputes has put Pakistan in a corner.   © Reuters

ISLAMABAD -- Pakistan's government is facing a quandary in a commercial dispute involving a delayed lease to a foreign mining consortium, with compensation damages plus interest totaling up to $7.9 billion -- the most in the history of the country's cross-border commercial disputes. While Islamabad is reportedly entering into a deal with the consortium, opposing groups have started agitating against it.

The stakes in the disagreement are high for Pakistan. The South Asian country is grappling with a rising debt burden and is part of a growing regional power struggle as China seeks to expand its influence.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more