On ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan on Mutual Promotion and Protection of Investments

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Law of the Republic of Kazakhstan dated March 17, 2006 No. 134

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan on Mutual Promotion and Protection of Investments, signed in Islamabad on December 8, 2003.

President of the Republic of Kazakhstan

Agreement between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan on mutual Promotion and Protection of Investments

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on December 7, 2009)

The Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Pakistan, hereinafter referred to as the "Contracting Parties", wishing to create favorable conditions for investments made by investors of one Contracting Party in the territory of the other Contracting Party, bearing in mind that mutual encouragement and protection of investments between the two countries contribute to the development of mutually beneficial trade, economic, scientific and technical cooperation, Recognizing the acceptability of favorable, legitimate and fair investment conditions to support investment foundations for more efficient use of economic resources. have agreed on the following:

Article 1 Definitions

For the purposes of this Agreement: 1. With respect to each of the Contracting Parties, the term "investor" means: a) an individual who is a citizen of any Contracting Party in accordance with its legislation; b) a legal entity established in accordance with the national legislation of the State of one Contracting Party, having its headquarters in its territory and investing in the territory of the other Contracting Party. 2. The term "investments" may include any types of property owned by investors of one of the Contracting Parties and invested in the territory of the other Contracting Party in accordance with the national legislation of its State and covers, in particular, but not exclusively: a) movable and immovable property and any other related property rights, except for goods, imported and intended for sale without processing; b) shares, deposits, bonds, securities and other forms of participation in companies or other legal entities registered in accordance with the national legislation of the State of the Contracting Party; c) reinvestment of income and payments of principal and interest on loan agreements; d) collateral rights for money invested to obtain economic values or services, having economic value; e) intellectual property rights, including copyrights, patents, trademarks, industrial designs, service marks, know-how and good will; f) economic activity rights granted in accordance with the national legislation of a State or treaties, including, in particular, rights to exploration, development and extraction of natural resources. Any further change in the form of the investment in which they were made does not affect their qualification as an investment, provided that such a change does not contradict the national legislation of the State of the Contracting Party in whose territory the investment was made. 3. The term "income" means funds received as a result of investments in cash or in kind, including profits, dividends, interest, remuneration for management, maintenance and other funds received in accordance with the national legislation of the States of the Contracting Parties. 4. The term "territory" means the sovereign territory of the Republic of Kazakhstan or the Islamic Republic of Pakistan, in which, respectively, one of the Contracting Parties exercises rights and jurisdiction in accordance with international law.

Article 2 Promotion and protection of investments

1. Each Contracting Party, in accordance with the national legislation of its State, will maintain and create favorable conditions on its territory for investors of the other Contracting Party to make investments. 2. Each Contracting Party guarantees fair and equitable treatment for investments of investors of the other Contracting Party in accordance with the national legislation of its State and will not violate the management, use, operation or disposal of these investments by arbitrary or discriminatory measures. 3. Income from reinvestment enjoys the same protection as the initial investment.

Article 3 Legal regime of investments

1. Each Contracting Party shall ensure in its territory, in respect of investments of investors of the other Contracting Party, a regime no less favorable than that provided to its own investors or investors of third countries. 2. The treatment provided under this Agreement does not apply to: a) advantages that any Contracting Party provides or may provide to investors of other countries in connection with participation in a customs or economic union, free trade zones; b) advantages that any Contracting Party provides or may provide to investors of other countries on the basis of an Agreement on the Avoidance of Double Taxation or other agreements on tax matters.

Article 4 The principle of more favourable treatment

If the national legislation of the State of a Contracting Party contains provisions that provide investors of the other Contracting Party with more favorable treatment than provided for in this Agreement, these provisions shall prevail over this Agreement.

Article 5 Guarantees against expropriation

1. Investments of investors of any Contracting Party may not be expropriated, nationalized, requisitioned or subjected to other measures having such consequences as expropriation, nationalization, requisition (hereinafter referred to as expropriation), except in cases where such measures are taken in the public interest in accordance with the procedure established by law, without discrimination, with immediate, adequate payment and effective compensation. Compensation should be equal to the market value of the expropriated investment at the time when the investor became aware of the expropriation. 2. Compensation must include interest corresponding to the applicable rate, calculated in accordance with the national legislation of the State of the Contracting Party, starting from the date of expropriation and up to the date of payment. Compensation will be paid in the currency in which the investment was made by the investor, or, with the investor's consent, in any other currency. Compensation should be effectively implemented and freely transferable without restrictions and unnecessary delay. 3. In the event of expropriation, the affected investor has the right, in accordance with the legislation of the State of the Contracting Party receiving the investment, to send his case to the judicial or other authorities of that Contracting Party to determine the value of his investments in accordance with the provisions set out in this article. 4. When a Contracting Party expropriates the assets of a company incorporated or formed in accordance with the laws of a State in force in the territory of a Contracting Party and in which investors of the other Contracting Party have shares, it must ensure that the provisions of this article are applied to the extent necessary to ensure immediate, adequate and effective compensation for investments of investors of the other Contracting Party, who are the owners of the shares.

Article 6 Compensation for damages

Investors of one of the Contracting Parties, whose investments in the territory of the other Contracting Party have been damaged as a result of war or other armed conflict, revolution, national emergency or civil unrest, are provided with a regime no less favorable than that provided to their investors or investors of third countries regarding restitution, compensation, compensation or other settlement..

Article 7 Transfer of payments related to investments

1. The Contracting Parties guarantee that all transfers of funds related to investments are carried out freely and without restriction and delay in accordance with the procedures established by the legislation of the State of the Contracting Party, which may provide for: a) rules for registration of such transfers, taking into account that the very right of free transfer is not violated; b) taxes, fees and deductions from the amounts transferred; c) protection of the legitimate rights of creditors or enforcement of decisions rendered during court proceedings. The procedures specified in this article must be fair and non-discriminatory. 2. In this Agreement, transfers include, in particular, but not exclusively: a) the capital initially invested and any additional amounts to maintain or increase investments; b) profits, interest, dividends, royalties or payments and other current income; c) compensation in accordance with Articles 5 and 6 of this Agreement; d) payments arising from the settlement of investment disputes; e) payments in accordance with loan agreements; f) proceeds from the sale or liquidation of part or all of the investment, if a free transfer is possible only with the permission of an authorized body; g) wages or other payments received by citizens of one Contracting Party for work and services performed in connection with investments made in the territory of the other Contracting Party, in the currency and in in accordance with the procedure provided for by the national legislation of his State; h) the amounts necessary to cover expenses arising from investments, such as loan payments, including subsequent interest or payments related to intellectual property rights. 3. The transfer of payments specified in paragraph 2 of this Article shall be carried out without delay in freely convertible currency at the official exchange rate of the Contracting Party in whose territory the investments were made effective on the day of the transfer. 4. In accordance with the national legislation of the State of the Contracting Party, all transfers that are the subject of this article will be provided with a regime no less favorable than transfers provided to investors of third countries.

Article 8 Subrogation

1. If a Contracting Party or any institution authorized by it makes payments to any of the investors of its State in the form of guarantees or insurance in connection with investments, the other Contracting Party considers this as the transfer to the other Contracting Party and its institution of any rights and claims related to the investor, who receive the same rights as the specified investor. 2. In the case of subrogation provided for in paragraph 1 of this Article, the investor may not make claims unless he is authorized by the Contracting Party or an institution authorized by it.

Article 9 Settlement of disputes between a Contracting Party and an investor of the other Contracting Party

1. Any dispute between a Contracting Party and an investor of the other Contracting Party that has arisen in connection with investments, including disputes over measures, conditions or procedures for compensation of payments, should, if possible, be resolved through negotiations. 2. If the dispute is not resolved within six months from the date of its occurrence, the investor may refer the dispute to: a) arbitration or the competent court of the Contracting Party receiving the investment; b) one of the internationally recognized arbitration bodies by mutual agreement of the Contracting Parties.; c) a special arbitration court established under the rules of arbitration of the United Nations Commission on International Trade Law (UNCITRAL). 3. The arbitration court shall be established separately for each specific case. Unless the Parties to the dispute agree otherwise, each of them appoints one arbitrator. The two appointed arbitrators select the chairman, who must be a citizen of a third country. The arbitrators must be appointed within two months from the date of receipt of the request to submit the dispute to the arbitral tribunal, and the chairman within the next two months. 4. If the above-mentioned deadlines and procedures have not been met, either Party to the dispute may, in the absence of other agreements, apply to the Chairman of the Arbitration court at the International Chamber of Commerce in Paris with a request to make the necessary appointments. 5. Unless otherwise agreed by the Parties to the dispute, the Arbitral Tribunal shall establish its own rules of procedure. 6. The decisions of the arbitration court are final and binding. Each Contracting Party shall ensure the recognition and enforcement of arbitral awards in accordance with the national legislation of its State. 7. During the arbitration process or the execution of the award, the Contracting Party involved in the process cannot refer to the fact that compensation for losses (in whole or in part) was received by the investor in accordance with the insurance contract.

Article 10 Settlement of disputes between By the Contracting Parties

1. Consultations on the interpretation or application of this Agreement may be held at the request of any Contracting Party. 2. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement shall be resolved, if possible, through negotiations. 3. If the dispute between the Contracting Parties is not resolved when one Contracting Party has notified the other Contracting Party, the dispute will be submitted to an arbitration court at the request of either Contracting Party. 4. Such an arbitration court is established for each individual case as follows: within three months after receiving the request for arbitration, each Contracting Party appoints one arbitrator of the arbitration court. Two arbitrators shall choose a citizen of a third country, who, with the approval of the two Contracting Parties, shall be appointed Chairman of the arbitral tribunal. The Chairman is appointed within three months from the date of appointment of the other two arbitrators. 5. If the necessary appointments have not been made within the time limits specified in paragraph 4 of this Article, any Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make the necessary appointments. If the President is a citizen of one of the Contracting Parties or for other reasons is unable to perform the specified function, in this case the necessary appointment is made by the Vice President. If the Vice-President is a citizen of either Contracting Party or is also unable to perform the specified function, the next-ranking member of the International Court of Justice who is not a citizen of either Contracting Party will be invited to make the necessary appointments. 6. The Arbitral tribunal shall make its decision based on the provisions of this Agreement, as well as the principles and norms of international law. The arbitration court makes its decision by a majority vote. Such a decision is final and binding on both Contracting Parties. The arbitration court determines the order of its work independently. 7. Each of the Contracting Parties shall bear the costs associated with the activities of the arbitrator appointed by it and its representation in the arbitration process. The Contracting Parties shall bear the expenses related to the activities of the Chairman of the Court and other expenses in equal parts. However, the arbitral tribunal may specify in its decision that one of the Contracting Parties should bear most of the costs, and this decision will be binding on both Contracting Parties.

Article 11 Final provisions

This Agreement applies to investments made after its entry into force. By mutual agreement of the Contracting Parties, amendments and additions may be made to this Agreement, which are formalized by separate protocols that are integral parts of this Agreement. This Agreement shall enter into force on the date of the last written notification through diplomatic channels that the Contracting Parties have completed the national legal procedures necessary for its entry into force. This Agreement remains in force for ten years. After a ten-year period, its validity is automatically extended indefinitely. Any Contracting Party may terminate this Agreement at any time after the expiration of the ten-year period by giving written notice of termination six months or more in advance. With respect to investments made during the period of validity of the Agreement, its provisions will apply for five years after the date of termination of the Agreement.

Done in Islamabad on December 8, 2003, in two original copies in Kazakh and English, both texts being equally authentic. In case of disagreement in interpretation, in the languages of the text, between the Contracting Parties, English shall prevail.

For the Government For the Government of the Republic of Kazakhstan of the Islamic Republic of Pakistan

President

Republic of Kazakhstan

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