The federal cabinet is expected to approve supplementary grant of $ 1.37 million on to contest cases filed by M/s Karkey in courts of different countries as Pakistan’s assets abroad are facing "attachment" threat.

Pakistan’s assets abroad are at risk of being taken over as a security to implement the international arbitration court’s ruling.

Due to the failure of the caretaker government to deposit Rs15 billion security guarantee, a stay order in favour of Pakistan on the execution of the $846 million arbitration cost awarded to the Turkish firm, Karkey Karadeniz Elektrik Uretim has been vacated.

Pakistan may be at the risk of new investment arbitration lawsuits if it formally signs an international Energy Charter Treaty (ECT) under which powerful investors have already sued other states for $35 billion at various global tribunals.

The company exaggerated its future profits by underrating tax and royalty obligations by as much as 61 per cent, officials said.

Pakistan has been an observer to the Energy Charter Treaty (ECT) since 2005 and has subsequently indicated its intention to become a full member.

As a National Accountability Bureau inquiry into alleged embezzlement in Reko Diq case remains on hold, various stakeholders made contradictory claims before the Public Accounts Committee about people who could be blamed for any corruption in the deal.

The TCC tribunal failure did not reflect an internal failure on the part of Pakistan’s state apparatus as much as it did the hegemonic nature of the global BIT regime that developing countries have been subjected to by the West.

The government has spent over Rs2 billion to win a case in the international court over the acquisition of assets of Progas Pakistan Limited company – worth Rs2.3 billion.

Last year, Pakistan won a case against the UK-based shareholder of Progas Pakistan in the International Centre for Settlement of Investment Disputes.