According to newspaper reports, Pakistan and Switzerland have signed an agreement for exchange of information about bank accounts in the two countries. However, the access to bank accounts would not guarantee Pakistan to recover a whopping sum of $200 billion stashed in that country by Pakistani depositors.The two countries signed Avoidance of Double Taxation Agreement in 2005, but it took three years to come into force in 2008. Now modalities of the agreement for exchange of information have yet to be worked out and it will come into force from the next fiscal year. Economists believe the political expediencies area the main reason for delay in the signing of the agreement. The western nation is not tired of giving a lesson of decency to the world, but its banking empire is established on dirty money deposited by corrupt politicians, bureaucrats, smugglers and other criminals from around the globe. The world leaders and international organizations are silent on the piling up of dirty money in that country. The harbingers of the freedom of expression don’t allow anyone to expose the banking industry of Switzerland.
In line with Switzerland, many other countries are now offering countless concessions to the corrupt elements of the world and some Arab countries are in the forefront to accept foreign investment without asking a word about the source of income. Pakistanis have emerged as one of the leading investors in real estate markets of the United Arab Emirates, Malaysia and other countries. Despite signing of various agreements with these countries, Pakistan officials have no access to information to prosecute the elements involved in money laundering or at least they take any step to bring the national wealth back to the country. The only exception to the current agreement with Swiss government is that it will help detect future depositors of the Pakistani origin to some extent. The new agreement will also improve the flow of information regarding transfer of money from Pakistan to the Swiss banks and that country would no longer work as safe haven for the dirty money. There is no doubt the Pakistani government has made an effort to retrieve the national wealth, but it is difficult, if not impossible to ensure the return of the money to Pakistan.
The government should offer a package of incentives for the potential investors as well as tax relief for the corrupt money holders to keep the national wealth within the country. The economy of Pakistan is improving and there is a need to make it an attractive destination for the local and foreign investors.
