The sources said it was a complex issue, as the companies which had been given permission to import duty-free tractors, have approached the ministry for amendments in the documents they submitted earlier, while three more companies, Shehzad Trade Links, Fecto Belarus Tractors Limited and Hero Motors Limited were in the race to get the order of remaining 2,500 tractors.
They said one of the companies which earlier got permission was seeking waiver of some of the conditions, they have agreed upon with the ministry during meetings prior to the allocation.
The sources said petitioner Shehzad Trade Links had made a representation to the industries secretary on September 8, wherein it was contended that it was in the process of finalisation of joint venture with Minsk Tractor Works of Belarus and has the basic infrastructure ready to set up the plant in Pakistan.
The sources said legal notice issued by Advocate Amer Raza Naqvi on behalf of Shehzad Trade Links has asked the ministry to provide details of the companies, which have been granted permission for importing 7,500 tractors along with the material they submitted to the ministry.
The ministry has been asked to grant permission for import of remaining 2,500 tractors, which according to the notice, fulfilled all the requirements.
The sources said some tractor companies were also engaged in leg pulling and even defaming each other in the eyes of foreign companies.
For instance, Fecto Belarus Tractors Limited in a letter to the General Manager, Minsk Tractor Works, Belarus, said that the company has been deprived of $19 million business due to misrepresentations of Hero Motors Company, Hyderabad, adding that Minsk Tractor Works was actually responsible for this debacle as despite repeated requests, it did not take any action against Hero Motors.
Fecto Belarus also argued that the company's blue-eyed boy, Shehzad Riaz had filed a constitutional petition, nominating several senior government officials as respondents, especially industries secretary.
In other two letters, the copy of which was made available to this scribe, Raza Fecto Tractor (Private) Limited, said that due to strict government regulations relating to the import of tractors in CKD condition under the "deletion programme" of the EDB, the company had to find out yet another way in order to have parts/components similar to the amount demanded by MTW and both parties have to select parts in two different categories which are as follows:
1. To be separately imported as CKD in accordance with the government's approved deletion programme in the name of Raza Fecto (Pvt) Limited, having exemption of duty and taxes.
2. To be imported separately as commercial parts in the name of other companies to be registered with the Pakistani government on which the company will have to pay duty and other taxes.
The sources said Facto Tractors and Hero Motors were also approaching the Industries and Production Ministry for seeking permission to import the remaining 2,500 tractors.
The sources also said that the Hero Motors had submitted its application to the Industries Ministry that it had already signed technical agreement with Minsk Tractor Works, adding that the ministry tried to get confirmation from the manufacturer in Belarus, But Minsk Tractor Works categorically denied that they have authorised Hero Motors for the assembly of Belarus Tractors in Pakistan, which shows how these companies were giving wrong information to the government to get duty-free scheme at every cost.
In the past one of the companies sold imported tractors at more than the double price for which the Supreme Court of Pakistan had taken strong action.