FBR to formalise PaCCS purchase offer by end of March

FBR to present formal offer to Kuwait-based logistics company for purchase of PaCCS software.

KARACHI:

The Federal Board of Revenue (FBR) will present a formal offer to Kuwait-based logistics company Agility for purchase of its Pakistan Automated Container Clearing System (PaCCS) software before the end of this month.

Speaking exclusively to The Express Tribune, FBR Chairman Salman Siddique confirmed that a special committee had been constituted by the federal finance minister in February to resume negotiations with Agility.

The committee, headed by Federal Finance Secretary Dr Waqar Masood Khan, also includes various officials from FBR, including Siddique. The FBR chairman also revealed that he, along with other members of the committee, met with representatives of Agility in Kuwait on March 4.

“We offered them to continue operating the software in a public-private partnership with FBR, but given the previous record of non-payments and so forth, they were unwilling to continue the relationship in that form,” he said.

He explained that the two sides have now agreed that FBR will purchase the software from the logistics company. “They have been quite flexible about the payments structure and other outstanding issues,” said Siddiqui, adding, “We will be in contact with Agility to work out details, but FBR is definitely going to be purchasing this software.” When asked whether FBR may consider recommendations from certain quarters for reverting back to manual container clearing at different ports of the country, Siddique minced no words saying that “there is no way we are going back to a manual system for clearing of containers, or for any other process that has been automated.”

“The world is moving towards automated processes that facilitate stakeholders and speed up freight transport and clearance and we cannot afford to move back to archaic forms of data entry,” he added.

Previously, Agility Logistics had warned that it would shut down the PaCCS software on March 30. However, Siddique said that negotiations have resumed amicably and there is no reason or chance that the software will be shut down.

So far, only $70,000 has been paid to Agility, a representative of the logistics company told The Express Tribune. He added that the initial cost of implementing the software had been $210,000, while further expenses have been incurred in maintenance and operating costs. The company has also not withdrawn a request for arbitration filed in a French court. However, FBR officials are hopeful negotiations will be successful and arbitration will not be necessary.

Published in The Express Tribune, March 20^th, 2011.