US accuses FBR of using 'pirated' version of its software

The US has accused Pakistan's Federal of Board of Revenue (FBR) of using "pirated" version of its software, urging Pakistan to refrain from engaging in such practice, well-informed sources told Business Recorder.

This issue was raised by the Principal Deputy Assistant Secretary of State for South and Central Asian Affairs Alice Wells during her recent visit to Pakistan.

According to sources, Wells maintained that FBR was using the pirated version of VMware illegally, urging Pakistan to purchase the software.

VMware, Inc. is a publicly traded software company listed on the NYSE under stock ticker VMW. Dell Technologies is a majority share holder. VMware provides cloud computing and virtualization software and services. VMware's desktop software runs on Microsoft Windows, Linux, and macOS, while its enterprise software hypervisor is for servers. However, FBR denied it, saying that "it's not true."

The sources said, US also argues that Pakistan should allow import of its beef but Islamabad is hesitant to accept this demand, saying that US beef has quarantine, sanitary and phytosanitory issues.

Washington also wants to repatriate the proceeds of its insurance company MetLife which has already wound up its operations in Pakistan. However, Finance Division maintains that insurance companies' proceeds are not allowed to be repatriated.

The sources further stated that Pakistan asked the US to convene the meeting of Trade and Investment Framework Agreement (TIFA) Council. Alice Wells said that Washington would look into it. The last meeting of TIFA was held in May 2019. Both sides during the meeting discussed ways to improve access for products, such as agricultural goods and medicines, in each other's markets. Additionally, given the growth in the digital economy in both countries, discussions about how to improve services and digital trade between the United States and Pakistan took place.

A couple of months ago, Pakistan ambassador to the US, Asad Majeed Khan held a meeting with the Assistant USTR (United States Trade Representative), Christopher Wilson and discussed trade related issues.

Christopher Wilson referred to the visit of Prime Minister Advisor on Commerce, Industries and Production and Investment, Abdul Razak Dawood to Washington DC and expressed his apologies for not being able to set up his requested meeting with Ambassador Lighthizer.

He revealed that Ambassador Lighthizer had a packed schedule, particularly because of his engagements in the Congress relating to the USMCA legislation. He mentioned that he was very keen to explore options for expanding bilateral trade and investment relationship with Pakistan. This was also the mandate given by the top leadership of the two countries in their summit meeting in Washington DC he said adding that he would continue to make a strong argument in this regard with Lighthizer. He mentioned that this was a challenging task in the current US trade policy framework.

Pakistani ambassador to US, Asad Majeed Khan appreciated the gesture of Wilson and efforts being made by him to promote bilateral commercial relationship. He highlighted various commercial opportunities and developments in Pakistan on ease of doing business.

He said that Pakistan was keen to explore potential trade concessions which could be expedited in the short run through executive action to implement the mandate of the meeting between Prime Minister Imran Khan and President Donald Trump on growing bilateral relationship. He noted that this was not a one way street but should be mutually beneficial. Pakistan could import more US cotton in return for preferential US market access for its apparel exports. Free Trade Agreement (FTA) could be a long term goal because of the complexity involved in the process. He said that the TIFA framework provided an institutional mechanism to carry forward these discussions and come up with new ideas in this regard.

Christopher Wilson suggested that they could work on convening of the TIFA inter-sessional sometimes soon. Pakistan ambassador mentioned that it would be logical to follow up the summit meetings with a TIFA Council. He also mentioned the need for convening the Business Opportunities Conference adding that the embassy was engaged with the State Department in this regard.

Wilson stated that his office will continue to explore opportunities for growing bilateral trade relationship and engage his leadership for this purpose. He was, however, not sure about the timelines for Council meeting yet.