Bigger bombshell than the Panama Paper in offing for Pakistanis having black money in offshore companies
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Senior economist Dr. Ikramul Haq recently made a significant statement regarding the British Virgin Islands and the impending introduction of a new law concerning offshore companies. He emphasized that this new legislation is poised to have a bombshell impact than the Panama Papers scandal.
Dr. Haq believes that this development will not only affect Pakistan but also have global repercussions. Starting from January 1, 2024, the world will witness the enforcement of a law that will likely lead to the disclosure of information related to tax havens, including the British Virgin Islands. As a result, companies operating in these tax havens will be required to reveal the identities of their beneficial owners.
During an interview with Imran Sultan on his show "Dus," which was broadcast on Aaj News, Dr. Haq elaborated on the implications of this new law.
He stressed that it will not only enable governments to access this information but will also make it accessible to the general public, allowing them to view the beneficial owners of offshore companies online.
Dr. Ikramul Haq also drew attention to the financial decisions made by Pakistanis in response to international developments. He noted that Pakistanis withdrew their assets from Swiss banks after the Swiss government faced scrutiny from the Organisation for Economic Cooperation and Development (OECD).
In response to the stringent measures imposed on Swiss banks by the OECD, many Pakistanis shifted their assets to the British Virgin Islands. This migration of funds resulted in a significant decrease in Pakistanis' assets held in Swiss banks, plummeting from $19 billion to $2 billion.
Additionally, Dr. Haq expressed his disappointment with the tax amnesty granted to 475 individuals in the years 2018-2019. These individuals were identified in the Panama Papers, and Dr. Haq questioned the fairness of this amnesty in light of the revelations contained in the Panama Papers.
