Home News Pakistan agrees to legally protect Turkmenistan’s investments in TAPI

Pakistan agrees to legally protect Turkmenistan’s investments in TAPI

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Pakistan agrees to legally protect Turkmenistan’s investments in TAPI

In November, Turkmenistan had requested Pakistan to protect its investments in TAPI under this law.

Islamabad

Pakistan has agreed to expand the scope of the Foreign Investment Promotion and Protection Act (FIPPA) to provide legal protection for Turkmenistan’s $10 billion investment in the TAPI gas pipeline. It is expected that this decision will enhance the attractiveness of the project for international creditors, Hronikatm.com reports.

Initially, this law was enacted to protect foreign investments in the Pakistani copper-gold mine Reko Diq. In November, it became known that Turkmenistan had requested Pakistan to protect its investments in TAPI under this law.

The Pakistani side did not raise objections and began legal work to include the project in FIPPA. The process is expected to be completed by December 31, 2023.

As reported earlier, the law provides for tax incentives and protection of foreign investments exceeding $500 million.

The $10 billion TAPI gas pipeline project will be financed 30% ($3 billion) by the participants and 70% ($7 billion) through loans from international financial institutions. Of the 30% allocated by participating countries, 85% ($2.55 billion) will be contributed by Turkmenistan, and the remaining 5% ($150 million) each by Afghanistan, Pakistan, and India.

During the visit of Turkmenistan’s Foreign Minister Rashid Meredov to Afghanistan on December 16-17, the Afghan side announced the completion of preparatory work and readiness to commence the construction of TAPI.

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Courtesy: Central Asian Light (Posted on December 22, 2023)

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