What Happened: A World Bank dispute settlement body has ruled that Pakistan must pay $5.9 billion to the Tethyan Copper Company as the result of a seven-year arbitration over mining rights in Pakistan's Balochistan province, Dawn reported July 15.
Why It Matters: The timing of the ruling comes at a difficult time for Pakistan as the country is already facing financial problems amid its attempts to rectify its burgeoning public debt after receiving a $6 billion loan from the International Monetary Fund.
Background: Balochistan is Pakistan's largest province by land area and holds vast untapped mineral resources. However, the region also remains prone to militant attacks that continue to destabilize the area.
Read More:
- Pakistan's Prime Minister Will Struggle With an Economic Slowdown of His Own Making (July 1, 2019)
- Pakistan: The Political Cost of Islamabad's New IMF Loan (May 13, 2019)
- Pakistan Trudges Along a Familiar Economic Path (Sept. 21, 2018)
