Turkish waste management firms move World Bank seeking Rs 1800 cr settlement from Pakistan

In a recent development for Pakistan, two Turkish waste management companies have moved to the International Centre for Settlement of Investment Disputes (ICSID) demanding a $230 million (Rs 1800 crore) compensation against the country. According to a report by The Express Tribune, the two waste management companies-- Al-Bayrak and Ozpak-- were invited by the then-Punjab chief minister and the incumbent Prime Minister Shehbaz Sharif in 2012 to clean up Lahore and pick up garbage. The firms were formed under Lahore Waste Management Company (LWMC) and were assigned to clean the city of Lahore, which reportedly generates 5000 tons of waste daily.

As per the agreement, Lahore-- the second largest city in Pakistan-- was divided into two parts for cleaning purposes and, the companies were asked to purchase the machinery themselves. Subsequently, the report said the two companies had opened their offices at six different locations in the city. However, due to some unknown reasons, Pakistani media reported that LWMC raided the offices in December 2020 and subsequently seized equipments belonging to Turkish companies.

Companies allege 'mismanagement' by the previous Buzdar-led Punjab government

Although the media report claimed that the previous Pakistan government officials including Law Minister Azam Nazeer Tarar and AGP Ashtar Ausaf had held a high-level meeting over the matter in Istanbul last week, the companies abruptly filed a complaint in the ICSID. Notably, the ICSID is part of the World Bank Group and handles disputes between international investors. Meanwhile, the media report claimed that a senior Pakistani government official said they filed the case alleging “mismanagement by the previous Buzdar-led Punjab government” and added the case would be solved swiftly, saying it has no "concrete base".

The official informed that the two firms have made the president, primer minister, chairman of the Board of Investment, minister for law and defence, minister of foreign affairs, secretary of local government and community development department, chairman of the LWMC, Pakistan’s ambassador to Turkey and office of the AGP as respondents in the case.

Pakistan PM & his son are already facing corruption charges 

It is worth mentioning incumbent Prime Minister Shehbaz Sharif and his son and Punjab Chief Minister Hamza Shehbaz, are also facing a multi-billion money-laundering case. Earlier in the first week of this month, Pakistan's Federal Investigation Agency (FIA) sought the custody of Sharif and his son. The major development came as the Federal agency claimed they got some evidence against the duo and also prepared an interim investigation report, which they had already filed in the court. As per the agency, both father and son have been allegedly involved in a money laundering case worth 14 billion Pakistan Rupees ($75 million).

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