Dispute over software: Agility files case in international tribunal

Commission seeks Pakistan’s response to appointment of arbitrator.

ISLAMABAD: Kuwait-based logistics company Agility has filed a case against Pakistan in the International Centre for Settlement of Investment Disputes in a row with the Federal Board of Revenue (FBR) over payments for the company’s automated cargo clearance software, say documents.

According to the documents, Foreign Minister Hina Rabbani Khar has been named a respondent in the case. The dispute settlement centre has informed Khar through an email and letter that Agility has filed a case against Pakistan and to proceed with the case a tribunal, headed by the centre’s administrative council Chairman L Fortier QC, is being set up. With the letter, the centre has sent the profile of Fortier, a Canadian national, and asked Pakistan to review and inform the centre about any reservations about the arbitrator.

According to the documents, the foreign ministry has approached the law ministry and the FBR to deal with this matter. An FBR official said the dispute had been settled with Agility after a series of meetings, but the filing of the case in the international arbitration commission was surprising. He said in the past two months the government had paid $8.2 million to Agility for Pakistan Automated Customs Computerised System (PaCCS) and this month the country had to pay $600,000.

According to an understanding reached with the company, the FBR had to pay $600,000 per month by the time the cargo clearance service came to an end, he said.

Published in The Express Tribune, October 14^th, 2011.