ISLAMABAD: Federal Finance Minister Muhammad Ishaq Dar Tuesday informed the National Assembly that Pakistan had become 104th member of Organisation for Economic Cooperation and Development (OECD), an organisation for controlling tax evasion and tax avoidance.
In a statement, the minister said, on September 14 the OECD Secretary General endorsed Pakistan’s membership to become part of the most comprehensive instrument available to expose tax evasion.
Earlier, G-20 countries were members of the OECD and the convention was made open for other countries in 2011 and by the time Pakistan joined this convention it had 103 members, Dar explained.
After coming into power, the present government started negotiations with the OECD as its membership is awarded by intent and not by invitation. Therefore, after sent our intent to become member, a due process started that culminated in September this year.
The minister explained that under the convention, the member countries share information with each other about investment of tax evaded money. “We have inked an initial agreement and once their internal process completes, Pakistan will be eligible to access the information about tax evasion.”
In this regard, an agreement will also be signed with the Swiss government to have information about illegal flow of capital to that country from Pakistan, he added.
The minister said the government has completed all formalities to become member of the most comprehensive instrument available for tax avoidance and once the process completes Pakistan will be able to benefit from its three kinds of information exchange; the information through request; spontaneous exchange of information; and automatic exchange of information.
He said our agreement with the organization would be operational by the end of next year then we shall be receiving information about heavens of tax evaders.
Dar said the membership for other countries was opened by the organization in 2011 and it is privilege of our government that we joined this most influential convention. “After concerted efforts and struggle of two and a half years and fulfilment of requirements, we became member of this organization.”
He said it was due to better performance of economic managers in the country that OECD peer reviews were completed successfully.
The Cabinet gave approval to become member on August 31 this year and the Prime Minister signed instrument of powers on September 06. Consequently Pakistan became member of this organization on September 14, 2016.
