ISLAMABAD: Pakistan and Australia on Thursday agreed on a major step towards overhauling their 1998 Bilateral Investment Treaty (BIT), signing Agreed Minutes that capped a four-day negotiating round. Both sides called it their most significant progress so far towards a modern, balanced and risk-responsive investment framework.
Australia has committed major resources to the renegotiation, noting that the old BIT is outdated and poses legal risks to both countries, especially as Pakistan has agreed to remove the treaty’s investor-state dispute settlement (ISDS) mechanism, as per the minutes exclusively available with The News.
The breakthrough followed intensive talks from November 17-20, during which negotiators reached near-consensus on several core chapters of the prospective treaty, including expropriation, the right to regulate, dispute settlement, transfer of funds, temporary safeguard measures, security exceptions, investment treatment and sustainable development provisions.
The parties will now consult their respective governments and continue addressing unresolved issues, including the scope of covered and portfolio investments, through virtual sessions, with the option of future in-person rounds. Any final text will require approval from both governments.
The Australian delegation was led by Patricia Holmes, chief trade law officer, while Pakistan’s team was headed by Hassan Mehmood, legislative adviser at the Ministry of Law and Justice. Delegations included senior officials from Australia’s department of foreign affairs and trade and Pakistan’s Board of Investment, Attorney General’s Office, Special Investment Facilitation Council, State Bank, National Security Division, and energy and infrastructure bodies.
Federal Minister for the Board of Investment Qaiser Ahmed Sheikh, who concluded the Islamabad round, praised the positive, professional and constructive engagement, saying the progress reflects Pakistan’s broader shift toward modern investment governance aligned with global standards.
He said Pakistan is entering “a new phase of investment policy reforms” centred on transparency, investor protection, confidence and long-term economic cooperation with global partners. Strong bilateral engagements such as the BIT round, he added, will help expand opportunities in energy, mining, technology agriculture and industrial development.
Sheikh commended both negotiating teams and expressed confidence that a modernised BIT will boost investment flows, deepen commercial ties and support Pakistan’s long-term economic stability.
