Sources told Business Recorder here on Saturday that Economic Affairs Division has also requested the FBR to exempt Japanese nationals from customs duties, internal taxes and other fiscal levies which may be imposed on supply of products and services under the said contract. Details revealed that the project is being undertaken by Jica under follow-up co-operation scheme. JICA will provide spare parts for sustainability of its original Grant Aid Project "Exploitation of Ground Water in Balochistan Province". In response to a request from Pakistan, JICA has decided to conduct a study on the aided project. Jica dispatched the Follow-up Co-operation Study Team headed by Takahiro Ikenoue, Advisor, Grant Aid Project Management Division 3, Financing Facilitation and Procurement Supervision Department, Jica. The Team held a series of discussions with the officials concerned and conducted a field survey.
Sources said the objective of the Follow-Up Project is to rehabilitate the drilling rigs procured under the Original Project. The study aims at reviewing the current situation of the Equipment, clarifying the request by the Pakistan side and collecting information necessary for Jica's decision-making on the project.
As per findings by the Team, the role of the Equipment is consistent with the development policies of Pakistan and Japan's co-operation policy vis-à-vis Pakistan. Although the Equipment has been maintained by the Pakistani side in accordance with the maintenance plan agreed in the original project, it has become evident that the part of the Equipment has caused malfunction due to weakness. As a result of the study the Team has listed up the necessary spare parts in line with the priorities.
Thus, the FBR should ensure prompt unloading and customs clearance at the port of disembarkation in recipient country. The FBR should grant tax exemption and customs clearance of the products at the port of disembarkation. To accord Japanese nationals whose services may be required in connection with the supply of the products and the services under the contract such facilities as may be necessary for their entry into the recipient country and stay therein for the performance of their work, when necessary.
The FBR should exempt Japanese nationals from customs duties, internal taxes and other fiscal levies which may be imposed in the recipient country with respect to the supply of the products and services under the contract, when necessary. Pakistani side would maintain and use properly and effectively the Equipment repaired under the project, including purchase of all the necessary consumables for continuous use of the equipment. The FBR should ensure speedy customs clearance at the port of disembarkation and tax exemption of all the spare parts are implemented under responsibility of the irrigation department, sources added.