A senior official of the Federal Board of Revenue has informed the Senate Standing Committee on Finance that there is a little hope and scope the government will be able to retrieve the money stashed by corrupt Pakistanis in Swiss banks. The situation is the same after the Supreme Court sent the then prime minister Yousaf Raza Gilani home for refusing to write to the Swiss authorities to reopen money laundering cases against his president and mentor Asif Ali Zardari. However, a revised treaty signed between Pakistan and Switzerland recently on the Avoidance of Double Taxation also did not cover past money transactions. According to unconfirmed reports, at least $200 billion had been stashed in Switzerland by Pakistanis over the years and the money is enough to rid Pakistan of all its loans and debts. The depositors include corrupt politicians, bureaucrats and mafia chiefs, but it appears the nation is not yet ready to act against corrupts elements. The Supreme Court sent the prime minister home, but could not do anything better to retrieve the national wealth as all the corrupt elements are united against the honest judiciary. In 2014, former finance minister Ishaq Dar had also informed parliament in writing that the government would make every effort to retrieve the money even if they have to revise treaty with the Swiss government. However, there is no change in the status of money and the situation till now.
The FBR official has now clearly explained that the exchange of information between the two countries could only be limited to the prospective transactions and the corrupt money does not fall in this category. The figure of $200 billion is though not authentic, but money is there without any doubt. However, the government has no will or plans to pursue the case in the International Court of Justice and even it has never won a case in any international forum. Instead of retrieving the money, the government has now shifted its attention to floating another amnesty scheme to attract foreign investors, including expatriate Pakistanis having black or white money in their bank deposits. Until the government reforms and changes basic structure of the tax system, the business of money laundering will continue to flourish. A plethora of indirect taxes is the evidence that the government is unable to impose and implement its writ with regard to direct taxes. The only way to bring back the money is to offer incentives to the potential investors and that is all.
