Pakistan and Canada end third round of investment treaty talks in Islamabad, minutes signed

Pakistan and Canada have concluded the third round of negotiations on a Bilateral Investment Treaty (BIT), a three-day round held in Islamabad, ARY News reported on Saturday. Representatives of both negotiating teams signed the minutes of the round at a closing ceremony attended by Qaiser Ahmed Sheikh, Federal Minister for the Board of Investment, and Tariq Ali Khan, Canada's High Commissioner to Pakistan.

Sheikh said the treaty could offer investors "a more predictable and transparent framework". The two sides named renewable energy, mining, agriculture and information technology as the sectors where they want more investment.

What a bilateral investment treaty does

A BIT is an agreement between two countries that protects investments made by each other's companies. Typical terms cover fair treatment, protection against seizure without compensation, the freedom to send profits home, and a way to settle disputes. For a foreign investor considering a mine, a solar farm or a software operation in Pakistan, it lowers the legal risk.

Why it matters here

• Mining: Canada is home to many of the world's mining companies, and Pakistan is trying to draw investors to minerals, including the Reko Diq copper and gold project in Balochistan, whose operator Barrick is Canadian.
• Diaspora: Canada has a large Pakistani community, and their remittances and businesses already link the two economies; a treaty could make it easier for Pakistani-Canadian investors to set up at home.
• IT: IT exports are one of Pakistan's fastest-growing earners, and Canadian firms are among those outsourcing work here.

What happens next

ARY did not report a date for a fourth round or for signing. A BIT has to be agreed in full, signed and then ratified by both governments before it takes effect.

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