20000223

MoF asked to clear hurdles in way of Ghazi Barotha project

ASIF FAROOQI

ISLAMABAD: Economic Coordination Committee of the Cabinet on Tuesday directed the ministry of finance to clear the roadblocks in way of construction of Ghazi Barotha Hydro Power Project as early as possible, it is learnt on authority.

The finance ministry was told to wrap up the tax payment disputes with the concerned parties to avoid further delay in the construction of the project, official sources told Business Recorder at the conclusion of ECC meeting here on Tuesday evening.

The sources said the finance ministry officials were told to expedite matters pertaining to disputes and complaints of the contractors and importers with regard to imposition of certain duties and taxes which are pending with the government for the last as many as five years.

The ECC directive came in the backdrop of continuous delay caused to the GBHPP mainly because of the frequent policy changes over the years. The Benazir government had withdrawn certain tax exemptions committed by her predecessors with the machinery, material and equipment importers for the project. Most of these importers and contractors moved the courts seeking redressal to their grievances. Since those times, these cases and issues were pending with the finance ministry and other related departments, causing huge delay to the project.

The ECC observed in its Tuesday's meeting that these minor issues, like two percent or even less concessions to the certain components of the project, have already caused massive harm to the project so these should now be resolved in a short period of time.

"The ministry was told to take up all the issues, including the tax related disputes immediately and act to resolve these swiftly," senior officials at the water and power ministry said.

The ECC also directed the finance ministry to resolve issues with regard to the stamp duties and registration fees between the provinces and Wapda in a way that provincial income is not affected.