Investment treaty with Finland in final stages

Finland has asked Pakistan to early finalize a bilateral investment agreement to help Nokia phone company to invest $200-300 million during 2005 in the country. Informed sources told on Saturday that final round of talks between the two countries is expected to be held in Islamabad shortly to sign the agreement. However, Pakistan has certain reservations over Nokia's demand that in case of a dispute Islamabad should accept arbitration only in the "International Court of Settlement of Investment Dispute". The government, sources said, wanted that such dispute settlement could be sought in other international forums as well including those of the United Nations and the United Kingdom. But Pakistan has, in principle, agreed that in case of a dispute, foreign investors could seek international arbitration. Pakistan was also opposing the demand of the Finland that arbitration clauses should be allowed to be invoked with retrospective effect. "We would not agree on that as it can cause a loss of millions of dollars to the national exchequer", a source said adding that various disputes worth $800 million were already pending against Pakistan and agreeing on retrospective clause would further burden the country financially. Pakistan has been calling upon foreign investors to first seek the intervention of Pakistani courts for dispute resolution.