SC rejects report

TERENCE J SIGAMONY

ISLAMABAD: The Supreme Court Wednesday rejected the report of a committee constituted for preparing guidelines to bring back Pakistanis’ money stashed in foreign countries.

Additional Attorney General Waqar Rana filed the report on behalf of the committee comprising secretary finance, governor State Bank of Pakistan and chairman Federal Board of Revenue. In the last hearing, the court had formulated this committee and had given them 15 days to prepare the guidelines.

The committee recommended to amend the law to prohibit the deposit of foreign exchange purchased from domestic exchange companies in foreign currency accounts in Pakistan.

It also recommended amending the law to restrict the movement of foreign currency in cash without any declaration.

The AAG apprised that the committee examined the efforts being made by the relevant government agencies to trace and retrieve assets held abroad by Pakistani citizens and found that the lack of specific information is the major hurdle in this respect.

He said that there is a realization that jurisdictions are now more ready and willing to exchange information through bilateral or multilateral treaties and conventions, either on their own will or because of pressure by international standard setting bodies like the FATF.

Chief Justice of Pakistan Mian Saqib Nisar, heading a three-member bench, expressed dissatisfaction over the report and said the recommendations are not forceful. Justice Ijaz-ul-Ahsan said, “Don’t give us methodology how to trace out, but tell us how the money could be brought back?”

The Chief Justice said they would see whether they pass an order to stop outflow of money. “If the money was sent abroad without justification then it will be disastrous for the country,” he said.

The court constituted a two-member commission comprising Shahbar Zaidi and Mehmood Mandiwalla, charted accountants, to examine the report and suggest the means for tracing out Pakistanis’ immovable properties and money stashed in foreign countries.

During the course of hearing, Member Federal Board of Revenue (FBR) said that some incentives should be given to those Pakistanis whose money is abroad, adding the government has to do something about it.

To this, the Chief Justice asked him if he was the government.

The member said that in the last 15 days they held five sessions and in the coming days they will present amendments to the law.

Justice Umar Atta Bandial remarked that the law has many loopholes but no one is bothered to plug them. Leaks like Panama and Paradise revealed that many Pakistanis have a lot of properties and money abroad. The committee should take the matter seriously and the legislation be made in that regard. He said the report does not say anything specifically.

The member FBR said that many steps have been considered how to stop the outflow of foreign exchange.

The Chief Justice asked him that before filing the report the government should have taken steps and presented a list of people who have money abroad. The CJP said they may hear this case on a daily basis.

The member FBR requested the bench to make this forum (committee) permanent. However, the Chief Justice told him that in 15 days they could not find out where Pakistani money is lying.

Former Information Minister Muhammad Ali Durrani said that all over the world efforts are being made to bring back money which is stashed in foreign countries. He said that corruption of political persons thwart the development.

The case was adjourned until March 20.