SGS asserted that the Tribunal had a broad jurisdiction that encompassed
both the alleged breaches of the BIT and the PSI Agreement. SGS submitted
that Pakistan’s violations of the Switzerland–Pakistan BIT included a failure
to promote SGS’s investment, impairment of the enjoyment of its
investments, failure to accord fair and equitable treatment, and
expropriation without compensation. SGS also argued that Pakistan had
breached its obligations under Article 11 (the “umbrella clause”) of the
Switzerland–Pakistan BIT by violating the PSI Agreement. According to
SGS, the umbrella clause had the effect of elevating violations of the PSI
Agreement, which were contract claims, into treaty claims.