Resolution of issues: Turkish cos receive positive response from govt depts

ISLAMABAD: Turkish companies operating in Pakistan have reportedly received a positive response from different government departments/agencies with respect to resolution of their issues due to active involvement from the Prime Minister’s Office during the term of former Prime Minister Shehbaz Sharif, well-informed sources in Commerce Ministry told Business Recorder.

Recently, Commerce Ministry had sought updated status of issues of Turkish Companies including from Consulate General Pakistan, Istanbul.

According to sources, issues of M/s Siyahkalem related to exemption from income tax on Saudi Fund for Development (SFD) projects and ERRA has been sorted out through Finance Bill 2022 and the subsequent release of performance securities and mobilization advance guarantees.

M/s Zorlu Enerji had two issues i.e. tariff determination for solar energy projects and payment of outstanding dues of $ 23 million. The issue of tariff has been resolved through NEPRA with tariff of Cents 4.09 per unit having been determined. However, the issue of outstanding dues is partially resolved.

M/s Hayat Kemya: the issue of release of bank guarantee of Rs 127 million against import of electrical installations and firefighting equipment is under litigation with FBR. However, issues with EDB and SBP related to exemption on five products has been granted. SBP has released $ 1.4 million import related payments for July 2022.

M/s Albayrak and OZ-Pak issue of non-payment of dues by the FBR is under litigation as the company has resorted to arbitration.

On August 27, 2011, Lahore Waster Management Company (LWMC) announced an international competitive bidding invitation for pre-qualification for procurement of solid waste collection and transportation/mechanical sweeping and manual sweeping, mechanical washing within the borders of Zone I & II of Lahore City.

M/s Ozpak was engaged in solid waste collection and transportation, mechanical sweeping, mechanical washing and manual sweeping as a contractor of the LWMC for Zone-II of Lahore city under the agreement dated November 11, 2011. The initial term of the Agreement was 7 (seven) years, which commenced on March 1, 2013. The term was extended by LWMC four times in total, last until December 31, 2020.

However, despite full compliance by Ozpak to the terms of the Agreement and impeccable services that have been provided, LWMC defaulted on many of its obligations under the Agreement, including but not limited to payment of Ozpak’s invoices when due, reimbursement of costs incurred by Ozpak, including manual sweeping costs, management costs, pickup costs, and compliance with the waste tonnage guarantee provided in the Agreement.

Copyright Business Recorder, 2023