The Japanese government has called on Islamabad to enhance the safety of personnel involved in Official Development Assistance (ODA) projects and to resolve ongoing import restrictions affecting automobile manufacturers.

These issues were at the forefront during the 8th Japan-Pakistan High-Level Economic Dialogue (JPHLEPD) held in Tokyo, as reported by well-informed sources.

According to non-papers circulated by the Economic Section of the Japanese Embassy in Islamabad, Japan emphasized the need for Pakistan to consistently adhere to the International Monetary Fund (IMF) program. The Japanese side also urged the Pakistani government to streamline tax and customs exemption procedures through the Ministry of Economic Affairs, citing a lack of understanding of bilateral international commitments.

Key requests from the Japanese officials included:

• Clarification of service tax exemption procedures and improved communication with provincial governments regarding technical cooperation projects.
• Assurance of safety for personnel working on ODA projects.
• Proper maintenance and management of facilities and equipment at ODA project sites.
• Timely implementation of ODA projects by the Ministry of Economic Affairs, addressing stagnation in domestic procedures such as PC-1 approvals and bank arrangements.
• Promotion of exports and investments in Pakistan.
• Elimination of minimum tax in Special Economic Zones (SEZs) and improvements in current conditions.
• Facilitation of the visa application process for Japanese businesspersons.

Additionally, Japanese officials highlighted the need to promptly lift the import ban on monosodium glutamate (MSG), which has already been addressed, and to promote the development of essential infrastructure for industrial sites, including SEZs.

During the discussions, Japanese representatives also raised concerns about instances where Japanese companies are required to pay income tax in advance when importing materials into SEZs.

On the Pakistani side, officials emphasized the importance of economic cooperation, the resumption of Yen loan projects, and the need for timely information sharing to facilitate these loans. They also called for an expansion of the Japan Disaster Relief (JDS) program and quicker decision-making processes by Japanese contractors for ODA projects.

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Furthermore, they advocated for the promotion of Pakistan’s exports, particularly mango varieties and textile products, and the establishment of a Joint Working Group on trade promotion and product development between Japan External Trade Organization (JETRO) and Trade Development Authority of Pakistan (TDAP).

The Japanese Embassy has pledged to work towards resolving these issues based on the discussions, rather than revisiting past agreements.