SANTIAGO: A World Bank arbitration court has ordered the Pakistani government pay damages of $5.8 billion to Tethyan Copper, a joint venture between Chile’s Antofagasta Plc and Canada’s Barrick Gold, the Chilean miner said late on Friday.
Tethyan Copper discovered vast mineral wealth more than a decade ago in Reko Diq, at the foot of an extinct volcano near Pakistan’s frontier with Iran and Afghanistan. The deposit was set to rank among the world’s biggest untapped copper and gold mines.
The company said it had invested more than $220 million by the time Pakistan’s government, in 2011, unexpectedly refused to grant them the mining lease needed to keep operating.
The World Bank’s International Center for Settlement of Investment Disputes (ICSID) ruled against Pakistan in 2017, but until now had yet to determine the damages owed to Tethyan.
Tethyan board chair William Hayes said in a statement the company was still “willing to strike a deal with Pakistan,” but added that “it would continue protecting its commercial and legal interests until the dispute was over.”
The Reko Diq mine has become a test case for Prime Minister Imran Khan’s ability to attract serious foreign investment to Pakistan as it struggles to stave off an economic crisis that has forced it to seek an International Monetary Fund bailout.
World Bank court orders Pakistan to pay $5.8 billion damages to Tethyan Copper
World Bank court orders Pakistan to pay $5.8 billion damages to Tethyan Copper
- Tethyan discovered vast mineral wealth more than a decade ago in Reko Diq in southwestern Balochistan province
- Company says had invested over $220 million when Pakistan government unexpectedly refused to grant them the mining lease in 2011
Pakistan highlights economic reforms at Davos, eyes cooperation in AI, IT and minerals
- Prime Minister Shehbaz Sharif speaks at breakfast event in Davos at sidelines of World Economic Forum summit
- Pakistan, rich in gold, copper reserves, has sought cooperation with China, US, Gulf countries in its mineral sector
ISLAMABAD: Prime Minister Shehbaz Sharif highlighted Pakistan’s recent economic reforms during the sidelines of the ongoing World Economic Forum (WEF) summit in Davos on Wednesday, saying that his country was eyeing greater cooperation in mines and minerals, information technology, cryptocurrency and artificial intelligence with other states.
The Pakistani prime minister was speaking at the Pakistan Pavilion in Davos on the sidelines of the WEF summit at a breakfast event. Sharif arrived in Switzerland on Tuesday to attend the 56th annual meeting of the WEF, which brings together global business leaders, policymakers and politicians to speak on social, economic and political challenges.
Pakistan has recently undertaken several economic reforms, which include removing subsidies on energy and food, privatization of loss-making state-owned enterprises and expanding its tax base. Islamabad took the measures as part of reforms it agreed with the International Monetary Fund (IMF) in exchange for a financial bailout package.
“We are now into mines and minerals business in a big way,” Sharif said at the event. “We have signed agreements with American companies and Chinese companies.”
Islamabad has sought to attract foreign investment in its critical minerals sector in recent months. In April 2025, Pakistan hosted an international minerals summit where top companies and government officials from the US, Saudi Arabia, China, Türkiye, the UK, Azerbaijan, and other nations attended.
Pakistan is rich in gold, copper and lithium reserves as well as other minerals, yet its mineral sector contributes only 3.2 percent to the countrys GDP and 0.1 percent to global exports, according to official figures.
Sharif said Pakistan has been blessed with infinite natural resources which are buried in its mountains in the northern Gilgit-Baltistan, Khyber Pakhtunkhwa, Azad Kashmir and southwestern Balochistan regions.
“But we have now decided to go forward at lightning speed,” he said. “And we are also moving speedily in the field of crypto, AI, IT.”
He said the government’s fiscal and economic measures have reduced inflation from nearly 30 percent a few years ago to single-digit figures, adding that its tax-to-GDP ratio had also increased from 9 to 10.5 percent.
The prime minister admitted Pakistan’s exports face different kinds of challenges collectively, saying the country’s social indicators needed to improve.
“But the way forward is very clear: that Pakistan has to have an export-led growth,” he said.
SHARIF MEETS IMF MANAGING DIRECTOR
Separately, Sharif met IMF Managing Director Kristalina Georgieva on improvements in Pakistan’s macroeconomic indicators, efforts toward stability and progress on institutional reforms, a statement from Sharif’s office said.
He emphasized Pakistan’s commitment to fiscal discipline, revenue mobilization and sustainable development, it added.
The IMF managing director acknowledged and appreciated Pakistan’s reform efforts, the Prime Minister’s Office (PMO) said.
“Both sides exchanged views on the global economic outlook, challenges facing emerging economies, and the importance of multilateral cooperation in safeguarding economic stability,” the PMO said.
