ISLAMABAD, Sept 12: Pakistan has accepted all those conditionalities of the US on Bilateral Investment Treaty (BIT) that it had been resisting for over a year for being against its national interests, Dawn has learnt.

The all of a sudden acceptance came from Islamabad following mounting pressure from Washington asking for finalisation of the much-awaited treaty. This softness in position would now likely lead to early signing of the BIT.

Informed sources told Dawn on Wednesday that a final meeting will be held with the attorney general of Pakistan shortly for a legal input.

Already the relevant ministries held the first meeting on the clauses with the Attorney General.

The two sides held several rounds of meetings since 2004 for reaching a conclusion to ink the agreement, which was termed a first step for initiation of talks on FTA between the two countries.

Sources said Pakistan has no other option but to accept the US demands under the treaty. The issue will be discussed during the second round of Pakistan-US strategic negotiations.

The two sides seemed nowhere closer on the five clauses of the agreement — scope and coverage, transparency, claims on behalf of an enterprise, investment agreements and arbitration rules.

The sources said under the five clauses, the US side had agreed only on two clauses with the proposals of Pakistan.

The US has been showing flexibility on claims on behalf of enterprise. Pakistan needs to draft specific language to take care of its concerns, like beneficiary ownership etc.

The sources said that the US side has noted concerns of Pakistan and required to provide language, but it has not been received as yet.

The second clause, where some flexibility has been shown by US was the issue of arbitration procedures in addition to international centre for settlement of investment dispute (ICSID).

Pakistan has also communicated its position on additional procedural rules and coverage of dual nationality under the United Nations Commission on International Trade Law (UNCITRAL) for the response of US side but no response received from the US side.The sources said that the US side had not shown any flexibility in three clauses of the proposed treaty. On transparency issue, Pakistan explained its position for issuance of ordinance without its advance publication. The SROs can be placed on website a week prior to their enforcement where such notifications, in the subjective opinion of Pakistan, will not have any adverse effects or implications for Pakistan.

Another controversial clause related to investment agreement. Pakistan proposed that it could not be made responsible for an act committed under investment agreement.

Contract as per agreement has its own mechanism to settle dispute which arose as the forum provided in the contract.