SINCE assuming office, Prime Minister Imran Khan and his
different cabinet members have repeatedly been stating to bring back the amount stashed in the foreign tax havens. An important development took place on Friday that could be described as the beginning or the first step towards holding those accountable who illegally stashed the amount abroad or did not declare foreign assets regardless of the fact that successive governments offered them many tax amnesty schemes.
News has emanated from the friendly country UAE that it has agreed to share details with Pakistan of the properties owned by five hundred non-Iqama holder Pakistani nationals. Importantly, the UAE authorities will also communicate the date of purchase of such properties that would help the FBR determine their exact tax liabilities. Whilst the government really deserves appreciation for reaching this stage but it is time to expedite the process and provide relevant details to the UAE authorities to take action against those who have not declared their properties under the Benami Transactions (Prohibition) Act, 2017. This should not be a matter of worry for those who have legally made and declared their foreign properties but those who failed in doing so should face the music. During a hearing of a case last year, the Federal Investigation Agency itself had told the Supreme Court that Pakistanis own properties and assets worth US$150 billion in the UAE alone. FBR Chairman Shabbar Zaidi himself is on record saying that in the last 20 years, around $6 billion had been siphoned off on an annual basis from the country. The country’s economic standing would have been different if that was not allowed to happen. Anyway, our success in the UAE will also determine as to how much the government is serious and committed to bring back the looted amount from abroad and check the flight of capital. The tax authorities believe that there are many Pakistani nationals who live in Pakistan but have obtained the UAE Iqama and parked tax-evaded and ill-gotten money there. Our authorities must continue the engagement process with the UAE officials in order to secure the details of these Iqama holders as well. Most importantly there is dire need to build the capacity of FBR’s offshore commissioners to effectively utilize the UAE information as well as new details shared by 44 OECD members two weeks ago. The people have pinned great expectations with present government to bring back the ill-gotten money back. How far it succeeds in its mission is yet to be seen.
