Finance Minister Dr Abdul Hafeez Shaikh has informed the Federal Board of Revenue (FBR) that the present government cannot afford to go in litigation with Agility over Pakistan Automated Customs Computerised System (PaCCS), and desired smooth and transparent solution of the issue, official sources told Business Recorder.
Agility had developed this revolutionary software and introduced to Pakistan to automate customs procedures and to bring transparency in customs procedures across the country. The Finance Minister has also reportedly directed top authorities in the FBR to sit with Agility officials and negotiate on resolution of the issue, because the government has no alternative automated solution to install overnight.
Needless to mention, the government has taken extension from Agility on the assurance of signing an agreement in this regard. If there is need, the FBR should form a committee to talk to Agility rather than going into litigation because litigation is not in national interest, the minister is understood to have told the FBR.
It may be mentioned that a semi-automated system, developed by PRAL, was installed for only one day-on May 28 this year-without testing. It, however, collapsed and caused huge losses to the national exchequer. The system, developed by PRAL, was responsible for frauds of over Rs 1.5 billion during the last financial year. Customs intelligence had detected that the system was a complete failure and PRAL employees could create fictitious invoice and issue refund sales tax to non-existent claimants, from their homes.
In 2005, PaCCS was launched as a pilot project to improve imports as well as to facilitate importers to file their declarations online. Above 60 percent of importers file their good declarations on PaCCS due to its speedy and automated procedures. PaCCS is a one-window system, web-enabled, and carries out all activities related to customs, from anywhere in Pakistan. The system can clear cargo on 365 days a year. All declarations are processed by highly advanced processing and risk management systems.
It has proved to be the best system Pakistan has seen so far and, despite FBR''s various allegations, has stood resilient because of trade and industry support. All traders, importers, associations, and unions have assured continuous support because it is in the interest of the nation. Pakistan has gained in billions of rupees from PaCCS, which might otherwise have gone into the pockets of corrupt officials.