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" THE "CAVEAT INVESTOR" PRINCIPLE: THE "CAVEAT INVESTOR" PRINCIPLE: ANALYSIS AND PERSPECTIVE   By   Kashif Mir Zubair   Recent controversies involving foreign investment in various sectors of the Pakistani economy (Riko diq lease in Baluchistan, Rental Power Plants, Huawei Telecom, are some examples) have put Pakistan at an increasing risk of being labelled a pariah State insofar as foreign investment is concerned. While such a label may be an unfair indictment, it nonetheless raises the question of whether international investors should be mindful of the unique dynamics of pluralistic and politically volatile countries like Pakistan. A necessary corollary to this question is the idea that the conduct of the investor, even outside the realm of the legal fiction created by complex investment treaties and contractual arrangements should be a factor incorporated into the dispute resolution process, and be part of the standard on which disputes are adjudicated.   The mainstream view generally does not consider the question of whether investors should be held culpable if they fail to gauge the true nature of the political, cultural, economic and social realities in the countries they invest into. A more pertinent question of whether principles of international commercial law and dispute resolution, largely conceived in the West, are fit to be applied uniformly across all nations is also often discounted.   This Article will aim to illustrate the efficacy of an unconventional theory of dispute resolution and dispute mitigation, specific to investor-state disputes. The overwhelming focus of academic, doctrinal as well as adjudicative development of international law in the area of foreign investment has been on standards of…
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