Bringing money from abroad: What incentives being given to lure people, asks SC

ISLAMABAD: The Supreme Court (SC) on Thursday constituted committee comprising Federal Board of Revenue (FBR) chairman, State Bank of Pakistan (SBP) governor and Ministry of Finance secretary to prepare guidelines and evolve effective strategy to encourage the people to take out their money from foreign banks, bringing back to Pakistan and to participate in development and prosperity of the country.

Saying that the FBR granted amnesty to traders in taxes, the court advised the officials to develop a mechanism by offering some incentives to attract the people for bringing back their investment to Pakistan instead of using sticks for the purpose.

Addressing the officials, the bench said that you have to implement the laws, but also have to ensure that the money of the people is secure; introduce any such scheme; the court will back you on this.

A three-member bench, headed by Chief Justice Mian Saqib Nisar, was hearing the suo moto notice about the foreign bank accounts held by Pakistani citizens.

Additional Attorney General Waqar Rana informed the court that the joint reply had been filed on behalf of SBP Governor Tariq Bajwa, Ministry of Finance Secretary Arif Ahmed Khan and FBR Chairman Tariq Mahmood Pasha.

The chief justice observed that many Pakistanis had opened accounts in the foreign countries. The SBP governor informed that there are 70 countries where the Pakistanis have money and the properties. He said with some countries, including Switzerland they have treaty for bilateral information, adding they have to operate with different laws in various countries. “If we have specific information that a person has accounts in such and such countries, it is easy to trace out that person amount in the bank,” he said.

The chief justice said the request to be made to the countries with whom Pakistan has treaty of bilateral information for getting information about some Pakistanis and not all the citizens. He asked them to develop a mechanism in order to ascertain the accounts and assets of people abroad. The CJP directed them to sit together and prepare a guideline within a week.

Justice Umar Atta Bandial said that it is not necessary that some people have taken money outside Pakistan to evade tax or through money laundering, adding it is must that nation should know about such people. He said if money returns, Pakistan would become prosperous country. He said the SBP governor, FBR chairman and Ministry of Finance Secretary are men of intelligence, passionate and loyal. He urged them to demonstrate to their best abilities.

Justice Ijazul Ahsan said the neighbouring country [India] brought back $800 million from Germany which had the treaty with Switzerland. Tariq Bajwa said they only can work under the bilateral treaties.

The chief justice noted that now Pakistanis have properties in Dubai, United Arab Emirates and even in Malaysia. He said possibly some laws should be made that fill the lacuna in the existing laws.

Justice Umar Atta Bandial informed that it was not their purpose to create panic, and asked the officers that they have to work hard. “You have to tell the lacunas in the existing laws. You have to identify the ways and means through that money was transferred from outside Pakistan which is legal channels. You have to apply your mind and tell about the properties, which is not their bona fide.” The judge asked them what incentives be given to people so that they should bring their money from foreign countries.

The FBR chairman informed that they have been trying to get information about the people who have properties in Dubai. He said out of 100 people they got information about 55 persons who have properties in Dubai. The chief justice remarked there are more than 100 persons, adding that they might have purchased properties in Dubai on the basis of ‘Iqama’.

The AAG informed that total 440 persons had been mentioned in the Panama Papers and out of them they could not trace out 78 persons.

He said they have recovered Rs6.2 billion from two persons whose name have mentioned in the Panama papers for having offshore companies. The court has asked the FBR chief to pick up 10 persons whose names are in Panama Papers so that notice be issued to them.

The Supreme Court asked the FBR to share a report submitted in court what steps it had taken regarding the matter of offshore companies after the release of the Panama Papers and Paradise Papers, which revealed details of wealth stored abroad by Pakistani citizens.

The court directed the FBR, SBP, Securities and Exchange Commission of Pakistan (SECP) and Finance Ministry to submit a detailed report on the matter in court.

He had directed the Foreign Ministry and SBP should share details of Memorandums of Understanding and agreements to be inked with various countries for the return of looted money to the country. Justice Nisar said there are reports circulating that people in positions of power have been looting money and transferring it to foreign countries. Additionally, the CJP directed FBR Chairman Tariq Mahmood Pasha to tell the court how many Pakistanis held accounts in Swiss banks, and banks in other countries.