The Japanese government has called on Pakistan to ensure the safety of personnel working on Official Development Assistance (ODA) projects and address import restrictions impacting automobile manufacturers.
According to a news report, the demands were made during the 8th Japan-Pakistan High-Level Economic Dialogue held in Tokyo. In non-papers shared by the Japanese Embassy in Islamabad, Japan underscored the importance of Pakistan adhering to the International Monetary Fund (IMF) program and urged streamlined tax and customs exemption procedures through the Ministry of Economic Affairs. This measure aims to address gaps in understanding bilateral international commitments regarding such exemptions.
Key requests by Japan included:
- Clarifying service tax exemption procedures and improving coordination with provincial governments on technical cooperation projects.
- Ensuring safety for ODA personnel and proper maintenance of facilities and equipment installed under ODA projects.
- Addressing delays in domestic procedures such as PC-1 approval and bank arrangements to facilitate timely implementation of ODA projects.
- Promoting exports, investment, and infrastructure development, particularly in Special Economic Zones (SEZs).
- Eliminating the minimum tax in SEZs and resolving issues where companies are required to pay income tax in advance when importing materials in SEZs.
The Japanese delegation also sought simplification of visa application processes for businesspersons, lifting of restrictions on monosodium glutamate (MSG) imports, and enhanced infrastructure development at industrial sites, including SEZs.
In addition, Japan recommended organising frameworks such as Public-Private Joint Economic Dialogues, Joint Trade Commissions, and Private Sector Business Conferences between the two nations.
On its part, the Pakistani delegation highlighted the need for enhanced economic cooperation, including the resumption of yen-loan projects and the provision of relevant information to Japan for project reconsideration.
Pakistan also sought expansion in the Japan Development Scholarship (JDS) program and faster decision-making processes by Japanese contractors for ODA projects.
Other Pakistani requests included promoting exports, particularly mangoes and textile products, to Japan and establishing a Joint Working Group on trade promotion and product development between JETRO and the Trade Development Authority of Pakistan (TDAP).
The Japanese Embassy pledged to address concerns raised by both sides and work on the non-paper issues without revisiting minute-level wording, sources said.
