Dubai tax haven: Dar transferred $4m to his son to avoid taxes, says PTI

Imran says all politicians should declare their offshore assets

ISLAMABAD: The Pakistan Tehreek-e-Insaf (PTI) on Thursday reiterated its allegations of money laundering against Finance Minister Ishaq Dar, saying he has transferred $4 million to his son in Dubai to avoid taxes.

“The biggest investor in this case is our very own Finance Minister Ishaq Dar. He has on record stated he transferred $4 million to his son in Dubai to avoid paying taxes,” said PTI chairman Imran Khan in a statement. Imran raised the allegations in the backdrop of recent reports on capital flight to Dubai real estate market.

During the 126-day sit-in at the Constitution Avenue, Imran took up the issue in his speeches on several occasions, alleging Dar was involved in money laundering in the past, but the accusations have been refuted by the finance minister.



Imran questioned the government for its inaction against ill-gotten wealth and tax evasion by the Pakistani elite at the expense of poor workers and households, which are passed onto them by record-levels of taxes and persistent inflation.

The statement also pointed out that Pakistani elite have used illegal channels to invest $4.5b (16b dirhams), just less than 2% of the country’s GDP, in Dubai’s real estate market in just 2 years (2013-2014). In comparison, Indian investors used $10b (36b dirhams), or 0.5% of Indian GDP, in Dubai property, citing reports published on local media on Tuesday. To plug this capital outflow, Pakistan had to take a loan of $3b from the IMF in these years and raise expensive debt through issuance of Eurobonds at 7.25-8.25%, it added.

Imran did not miss the opportunity to censure the ruling elite, particularly the PML-N chief and Prime Minister Nawaz Sharif and PPP co-chairman Asif Ali Zardari.

“Zardari and Nawaz properties and bank accounts abroad are now a well-established fact,” he said, while adding that “both PPP and the PMLN are busy in mutual compromises to save their ill-gotten wealth”.

Of the nearly $859.7 million deposited by the Pakistani elite in one Swiss bank (HSBC), Imran said one of the accounts is a famous one, where $60 million was deposited in 2007 in the account bearing Asif Ali Zardari’s name.

“Despite election promises, no effort has been made to get this ill-gotten wealth,” he said, adding that Dar was dragging his feet on signing tax avoidance treaty with the Swiss authorities to bring back the ill-gotten money.

The PTI chief stressed that to save Pakistanis from the clutches of the debt trap, all politicians should declare their assets and properties abroad and their tax returns, starting with Nawaz and Zardari.

“We cannot allow the poor to bear the brunt of indirect taxes while the rulers accumulate ill-gotten wealth abroad and evade taxes.”

Imran vowed that after coming to power, PTI will ensure all Pakistanis declare their assets within the country and abroad and will not only bring back black money but also provide a secure and viable investment climate for both Pakistanis and those abroad.

Ishaq Dar "A gift of 400 million dollars to kids" so funny statement & V expect he will put Pakistan finance on track. Stop dreaming anymore

— Mr Ad (@abedktk) February 20, 2015

this great progress is made by dr. Ishaq dar. Economic development. Will see how #ns will defend this act.

— Syed Erril Hussain (@ErrilPK) February 19, 2015

Published in The Express Tribune, February 20^th, 2015.