ISLAMABAD, Aug 22: Justice (Retd) Nasir Aslam Zahid, arbitrator appointed to settle the dispute between the government of Pakistan and Swiss company, SGS, was informed on Friday that parties were holding negotiations for an out-of-court settlement, and he should not proceed with the matter till Sept 30.

The Swiss company, which is at the centre of controversy after the termination of its pre-shipment inspection contract on the allegation that it had acquired the contract by bribing the then prime minister and her husband.

The company had approached the International Centre for Settlement of Investment Disputes (ICSID), alleging that by terminating its contract prematurely, the bilateral investment treaty between the government of Pakistan and Switzerland was breached. The company had also asked the ICSID to order Pakistan to pay damages amounting to $128 million.

The ICSID decision, on July 30, has forced the company to go for an out of settlement with the government of Pakistan, as the international forum has ruled that it has no jurisdiction to direct Pakistan to pay damages for breaching the pre-shipment inspection (PSI) contract, asking the company to approach the arbitrator in Pakistan in this regard.