Minister for Planning and Development Ahsan Iqbal. PHOTO: EXPRESS/ZAFAR ASLAM
ISLAMABAD:
As the war of words between the ruling Pakistan Muslim League-Nawaz and Pakistan Tehreek-e-Insaf intensifies, the government announced on Monday that negotiations with Switzerland will begin in August to bring back around $200 billion stashed by Pakistani politicians in Swiss bank accounts.
Responding to a fresh tirade by PTI chief Imran Khan, Minister for Planning and Development Ahsan Iqbal said his government would begin formal negotiations with the Swiss authorities in August.
Imran has alleged that the incumbent rulers have stashed their monies abroad while they were pleading for foreign investment in Pakistan.
In an angry retort, Iqbal alleged that Imran’s party wanted to create political instability in the country ‘at the behest of someone else’. He advised Imran’s party to shun the ‘politics of hatred and provincialism’ that could undermine federalism.
Iqbal said the Federal Board of Revenue will enter into negotiations with the Swiss authorities but he wouldn’t say how long it would take them to reach an agreement.
The Agreement for Avoidance of Double Taxation between Pakistan and Switzerland was last ratified in 2008. It saves individuals and companies from paying income tax more than once as money moves between the Swiss Federation and Pakistan. The cabinet has already given a go-ahead to the FBR to renegotiate a bilateral treaty on double taxation with Switzerland.
Stringent secrecy laws in Switzerland helped its banks invite clients from around the world. From large corporations avoiding tax to government officials taking graft money everyone used these banks to keep offshore accounts.
Since global financial meltdown, Swiss banks came under increasing pressure from United States and European Union to share information. Even India has stepped up efforts to catch tax evaders.
Published in The Express Tribune, June 10th, 2014.
COMMENTS (22)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
U.S. Congress just made laws for money laundering and tax evasion to get the money stolen and stashed in Swiss Bank. What law or power we have to ask Swiss Bank to give back "our" money? If he just claimed his intention without filing a lawsuit in Swiss courts, the account holders are not obligated to keep the money there any longer, are they? It's gone already! Modi has miles & miles to walk before even get a glimpse of any Indian money in Swiss Banks. As a matter of fact... BBC reported few months ago that Indians are moving their money in great number from Swiss Bank to Bank of New Zealand... About A Billion a month. $200b is not at all a big number when it comes to money laundering! A leader of an African poor country just stashed $50b in Swiss Bank after the take over.
Secondly the cost of raw material extracted is always based on moving averages(the cost of material) of 3 to 4 years. So your math of multiplying random numbers and the current price of gold is wrong. There is so much disinformation in Pakistan that the real figures are discarded for the fabricated and then the fabricated figures becomes the new "real figures".
@ETletthisthrough: Kindly read the papers written by Pakistan Geological survey on Reko Diq reserves. I am not going to copy the link so you need to go to their website and read the whole report. The copper yield is low from the ore and the gold is of low quality. Its not of "world class" quality at all. All the numbers and figures are given on the report so I dont want to regurgitate the figures again. Regarding the Sindh coal project, again the report is on PGS website. The coal reserves have high instance of sulfur which means the coal will catch fire very quickly when extracted and transported. Its under a table of water so the cost to extract will be higher and not to forget about the high pollution it will cause due to sulfur content. And yes the quantity of coal reserves is high but its of very low quality. Again, please read the reports penned down by Pakistani experts before jotting down incorrect information here.
How about putting some measures in place to prevent flight of capital in the first place?
These are the fake promises to divert the attention of people.
200 billion dollars?? These guys are clueless.
August....what ?? Ah yes, nothing like giving everyone time to move their money out of Switzerland. Just like Ch. Nisar giving 2 weeks warning before Karachi operation then literally giving a countdown to the number of days left. I wonder if all that hair colour use is starting to affect his thinking.
Why would the Swiss return $1 let alone $200 billion? You have no leverage/influence - this process is a form of Pakistan chest thumping - exercise in futility designed to impress the home audience.
Can I advise mr Iqbal to shun the politics of "rigging"
Do you seriously think people with money in Swiss banks would NOT move it somewhere else during this commotion. ???
1000 years of coal reserves in Sindh, 400 billion $ copper/gold reserves in Reko Deck <--- its all True,
Reqo Diq is world class,it is one of the top 5 largest gold mines on the planet. The only problem there is the capex required, this govt and no other company in pak can raise it right now. Average, 40 million ounces x 1.2k gold price is much more than 400 billion.
Sindh coal is lignite and in absolutely mammoth quantities, it can supply paks domestic power consumption for centuries, again, a fact. Which can be backed up with figures and evidence.
If you want to respond to these statements, come back with facts.
Indians are an even bigger joke, talking about 3 trillion in switzerland lolol. Also kaaloo Anil Agarwal is in trouble in Zambia over looting their mines, google it. Not even Modi can save him
$200 billion figure is possible. It is estimated that Indians took $2 trillion out of the country, which is an extremely high number. A majority of Western banks, who have no ethical standards, thrive on bribe, black and blood money of poor countries. Developing countries should form a team and raise this issue at the international forums like UN.
How many claims have we seen about bringing back looted money? Rest assured, nothing will happen.
We, Pakistani's , are masters at coming out with ridiculous statements. $200 billion stashed abroad, 400 billion loss in war on terror, 1000 years of coal reserves in Sindh, 400 billion copper/gold reserves in Reko Deck , million of cubic gas reserves in South Waziristan etc etc. I can go on and on but hopefully point is made.
By the time for recovery comes, it will transpire that most of the illegal money have already been shifted to some other off-shore account....Mr Ahsan, first bring back your party people illegal money than talk of others...
@Punjab: Modi took power and on the first day made a team to bring back 2 trillion dollars of indians from swiss
Just wanted to correct you. Modi had to do that because there was a Supreme Court order. Modi has clearly stated in interviews that the first step would be to determine exactly how much money has been stashed illegally by Indians in Swiss banks. He said he had no clue and did not want to speculate as there were wild numbers being thrown around. He also said in case any money was recovered, he would pay a part of the proceeds to salaried taxpayers who have been paying taxes diligently all these years.
First you'll were looking just stupid.......now you're looking ridiculous and a bit desperate. STOP TALKING AND DO SOMETHING.
How can thieves retrieve other thieves' looted money??
USD. 200 billion stashed away in Swiss Banks? Ahsan Iqbal is counting stars in sunshine. This is just being fickle minded statement to try to draw the citizens' interest away from more pressing problems the nation faces. Remember the maxim, "Honor among thieves is the ancestor of all honors"....John McCarthy.
Modi took power and on the first day made a team to bring back 2 trillion dollars of indians from swiss....Our Dream team after one year still thinking of talking to swiss authorities in some future dates...this shows will of PMLN.
Minister for Planning and Development... In what capacity do you make such claim and you are neither the Finance, nor the Foreign Minister - let alone an ombudsman or an Accountability. Furthermore August maybe too late for you to do it anyway!
$200 Billion what a joke at least talk sense when making comments Ahsan Iqbal