Senior economist Dr. Ikramul Haq recently made a significant statementregarding the British Virgin Islands and the impending introduction of anew law concerning offshore companies. He emphasized that this newlegislation is poised to have a bombshell impact than the Panama Papersscandal.
Dr. Haq believes that this development will not only affect Pakistan butalso have global repercussions. Starting from January 1, 2024, the worldwill witness the enforcement of a law that will likely lead to thedisclosure of information related to tax havens, including the BritishVirgin Islands. As a result, companies operating in these tax havens willbe required to reveal the identities of their beneficial owners.
During an interview with Imran Sultan on his show “Dus,” which wasbroadcast on Aaj News, Dr. Haq elaborated on the implications of this newlaw.
He stressed that it will not only enable governments to access thisinformation 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 byPakistanis in response to international developments. He noted thatPakistanis withdrew their assets from Swiss banks after the Swissgovernment faced scrutiny from the Organisation for Economic Cooperationand Development (OECD).
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In response to the stringent measures imposed on Swiss banks by the OECD,many Pakistanis shifted their assets to the British Virgin Islands. Thismigration of funds resulted in a significant decrease in Pakistanis’ assetsheld in Swiss banks, plummeting from $19 billion to $2 billion.
Additionally, Dr. Haq expressed his disappointment with the tax amnestygranted to 475 individuals in the years 2018-2019. These individuals wereidentified in the Panama Papers, and Dr. Haq questioned the fairness ofthis amnesty in light of the revelations contained in the Panama Papers.