ISLAMABAD  - The Federal Board of Revenue (FBR) has successfully defended the claim of $650 million against MS Agility (Pvt) Ltd, a Kuwait-based Company.
Finance Minister Ishaq Dar has lauded the efforts of FBR and its legal team for putting up strong and successful defense in respect of the case filed by MS Agility against the Government of Pakistan.
FBR’s vigorous pursuance of the litigation in fact has led to the withdrawal of the case by the Claimants (Agility) days before the London Tribunal of the International Centre for Settlement of Investment Disputes (ICSID) was about to hold the final hearing in the matter.
It may be recalled that M/s Agility Pvt. Ltd was engaged in 2005 by FBR for developing software for automated clearance of import and exports cargo at Karachi port. Subsequently, FBR/Government of Pakistan terminated contract with M/S Agility in September 2010. The Company thereafter filed a claim worth $650 million against Government of Pakistan before the International Centre for Settlement of Investment Disputes (ICSID).
Initially the case was heard on the point of jurisdiction at ICSID’s Singapore seat during 2012-13. As the then government did not properly pursue the matter, Pakistan lost the case on the point of jurisdiction. However, the present Government took up the case afresh at the London seat of ICSID in August 2013 and vigorous defense was then put up throughout the proceedings.
The case was fixed for final hearing at London Tribunal in 3rd week of November 2015 but the Company seeing the strong defense put up by the FBR and its legal team, withdrew the claim unconditionally.