New law soon to bring transparency in declaration of offshore assets

PanamaLeaks

ISLAMABAD: In the backdrop of recent disclosure of PanamaLeaks regarding Pakistani’s holding offshore companies, the PML-N government has rigorously stepped up work on formulation of a new law with the consultation of central bank and other statutory bodies to bring transparency in the declaration of foreign assets.

Besides, Pakistan is going to hold a meeting on June 23-24 with the Swiss authorities in Bonn, Germany to access the Pakistani assets parked in Swiss banks for which formalities and other requirement of the asset-hosting country will be met.

The government authorities have already held two meetings with the Swiss government in this regard.  

According to estimates, there are around $200 billion undeclared assets of Pakistani nationals outside of the country, either invested in offshore companies or parked in foreign banks.

Finance Minister Muhammad Ishaq Dar in a post-Budget press briefing 2016/17 here said: “We have started exercises on this matter from April 21, and with the legal consultation of the State Bank, Federal Board of Revenue (FBR) and Securities and Exchange Commission of Pakistan (SECP) we are in process to devise a law to bring transparency in the disclosure of Pakistani assets parked abroad.”  

Dar said that Pakistan is still in war. Since Islamabad became frontline ally of the United States on war against terror, it suffered losses of $118 billion on account of
loss of lives, economic
opportunities and the damage to the country’s infrastructure.

“That time’s government [General Pervaiz Musharraf] made a poor bargaining with the U.S. Washington should have been bound to bear these losses to the Pakistani economy.” 

The government has decided to clear billion of rupees refunds of export oriented sectors and those who have reconciled repayment orders (RPOs) with the Federal Board of Revenue till April 30, 2016 will be cleared by 31st August 2016.  The export refinance has been reduced to 3pc— the lowest in the region.