Wheat from Pakistan: Afghanistan reluctant to make payment of outstanding amount

Afghanistan is reportedly reluctant to pay pending millions of dollars to Pakistan against wheat imported from Pakistan Agricultural Storage & Services Corporation Ltd (PASSCO) in 2008, well informed sources told Business Recorder.
According to the Ministry of National Food Security and Research 48.094 Metric Tons (MT) wheat was supplied to Afghanistan against a contract of 50,000 MT at the rate of $287 per MT. Out of the total cost of $13,803,139, an amount of $13,183,890 has been received whereas an amount of $1,717,916, including $619,249 (principal), plus mark up at the rate of 10.87 per annum was outstanding as on March 26, 2015.
The issue of pending payment of Afghanistan has been on the agenda of Pakistan Afghanistan Joint Economic Commission (JEC) but without any positive outcome despite consistent efforts. During a meeting held on February 20, 2014 under the chairmanship of the Minister for Finance to review implementation status of the 8th JEC it was decided that the case be brought to the ECC to settle the amount of outstanding payment in question.
According to the Ministry of Foreign Affairs of Afghanistan (Afghan Trade & Development Cell) , the outstanding amount of $628,784.56 is not correct as after receipt of Rs 1,890,330 from Trade Cell on account of cost 101.467 MT lost wheat, the outstanding balance comes to $619,614 only. The Ministry of National Food Security and Research further revealed that claims of transporters on account of supply of wheat were also outstanding.
Outstanding claim of M/s Abdullah Khan & Inamullah Khan (transporters), as determined by a sub committee comprising representatives of Ministry NFS&R, Ministry of Foreign Affairs and Finance Ministry was Rs 8,773,798. The claim of M/s Mercedes Cargo Services was yet to be determined as they have filed a law suit in the Lahore High Court (LHC). Ministry of National Food Security and Research has been directed to hold negotiations with M/s Mercedes Cargo Services for an out-of-court settlement and bring the case to the ECC in its next meeting.
Official documents available with Business Recorder reveal that a contract was signed in Islamabad on June 9, 2008 for the supply of 50,000 MT of wheat between the Government of Pakistan and Government of Afghanistan. According to the contract, 30,000 MT and 20,000 MT wheat was to be delivered at Kabul and Kandhar respectively. It was also decided that wheat will be Fair Average Quality (FAQ) of 2008 crop. Samples of the wheat provided by PASSCO will be kept with Afghan Ministry of Commerce, Afghan embassy, Islamabad and Afghan Trade and Development Cell (ATDC), Ministry of Foreign Affairs. The government of Afghanistan had also assured safety, security of the wheat carrying vehicles and personnel from Torkham/Chamman to Kabul, Kandhar and back.