The Federal Board of Revenue (FBR) has sought funds from the finance ministry for payment of $600,000 per month to Kuwait-based logistics company Agility, which runs the Pakistan Automated Customs Computerised System (PaCCS) at the port.
According to documents, the FBR said Customs accounts lacked sufficient cash and for continuous payments to Agility the finance ministry should release funds.
The FBR has also told the Customs department to ensure timely payment of “token money” to Agility every month as failure in this regard will dent Pakistan’s image abroad and drive away international investors, industrialists and traders from the country. “Until we reach an agreement with the software provider, token payments should continue,” the FBR said.
A senior FBR official said it had been agreed with the company that Pakistan would provide $600,000 every month until the swift cargo clearance service came to an end. However, in the past three months (August-October), the company has been paid $880,000.
The FBR has prepared alternative software called WeBoc for speedy cargo clearance and its pilot project has started at the Port Qasim. According to the official, the scope of the new system will be expanded to the whole country and by the time this happens payments to Agility will remain continue.
Agility has already filed a case in the International Centre for Settlement of Investment Disputes against the FBR to resolve payment disputes for its software, which has been running in the country since 2005.
Published in The Express Tribune, November 6th, 2011.
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