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The Japanese government has called on Islamabad to ensure the safety of personnel working on Official Development Assistance (ODA) projects and to address import restrictions impacting automobile manufacturers.
These issues were raised during the 8th Japan-Pakistan High-Level Economic Dialogue (JPHLEPD) held in Tokyo.
According to non-papers shared by the Economic Section of the Japanese Embassy in Islamabad, Japan stressed the importance of Pakistan consistently adhering to the International Monetary Fund (IMF) program. Japanese representatives also urged the Pakistani government to streamline tax and customs exemption procedures through the Ministry of Economic Affairs, highlighting gaps in understanding bilateral international commitments.
Japan requested clarification on service tax exemption procedures and called for improved coordination with provincial governments on technical cooperation projects. They further urged the elimination of minimum tax requirements in Special Economic Zones (SEZs), improvements to the current business environment, and the facilitation of visa processes for Japanese businesspeople.
Moreover, Japanese officials emphasized the need to lift the import ban on monosodium glutamate (MSG), which has reportedly been addressed, and to prioritize the development of critical infrastructure for industrial sites, including SEZs.
Concerns were also raised about the advance income tax imposed on Japanese companies when importing materials into SEZs.
