Pakistan argued against ICSID jurisdiction on the ground that the parties
had previously agreed to arbitration in Pakistan under the PSI Agreement,
which pre-dated the ICSID arbitration request. Pakistan submitted, in the
alternative, that the Tribunal had no jurisdiction because SGS’s claims were
contract and not treaty-based claims. Pakistan also asserted that SGS’s
conduct in the Swiss legal proceedings and Pakistan Arbitration amounted
to a waiver of its right to bring ICSID arbitration under the BIT and that,
in any event, SGS’s request for ICSID arbitration was premature because
the BIT required a 12-month consultation period prior to arbitration.
Pakistan also contested that SGS had failed to make an investment under
the BIT