A Kuwait-based logistic company M/S Agility Pvt. (Ltd) has withdrawn a $650 million claim against Pakistan’s Federal Board of Revenue (FBR), just days before the case was to be heard before an international court.
According to a statement by the Finance Ministry, Agility 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 USD 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, according to the statement.
