The Senate Standing Committee on Finance took notice of over 700 Pakistanis in Pandora Papers for owning offshore companies and summoned the Federal Board of Revenue (FBR) and Pakistani journalists involved in the investigation for a briefing on October 22.
A meeting of the Upper House Standing Committee on Finance was held under the chairmanship of Muhammad Talha Mahmood on Tuesday and expressed annoyance over the non-participation of the Chairman Federal Board of Revenue (FBR) and Secretary Finance.
“I have been informed that the Secretary Finance is in a meeting with the International Monetary Fund (IMF),” said Mahmood, adding that the fund has ruined the country. The IMF should be informed about the importance of the parliament, said chairman committee, adding that it indicates how much you are afraid of IMF. I will leave this time, but will take action against the officers next time for their absence from the meeting, said Mahmood.
When Senator Sherry Rehman raised the issues of offshore accounts and the historic rise of the dollar in the meeting, Chairman Committee termed the matter as important and said that Finance Minister Shaukat Tareen was also named in the Pandora Papers.
The FBR will brief on the next meeting on Pandora Leaks. The Standing Committee decided to include the issue of Pandora Paper in the agenda of the next meeting on October 22 and summoned the FBR and Pakistani journalists involved in the investigation.
Sherry Rehman said that capital plight is a matter of great concern when the Financial Action Task Force (FATF) would review the country’s position in the current month where money laundering and money trail is being questioned.
Briefing the committee, FBR official said that Prime Minister has categorically stated to investigate the matter. However, a senior FBR official stated that if assets are declared then it is legitimate.
Senator Sherry Rehman questioned that is it enough to declare an offshore company. Flight capital is a serious issue. She further said that the FATF meeting is scheduled for October, which questioned money trail and money laundering.
She said that the Pakistani rupee crossed Rs. 171 against the US dollar, which may reach 180 according to Fitch, and the current account deficit has risen by 81 percent, while FDI declined by 20 percent during the last months. The trade deficit widened while petroleum products reached an all-time high in the country, which is resulting in inflation, impacting businesses’ unemployment.
During the meeting representatives of the Flour Association briefed on the non-payment of rebate on the wheat issue from 2015 to 2017. The committee was told that 50 percent payment was to be made by the federation and the provinces each, but it was not made. The Deputy Governor SBP informed the committee that there were two schemes, one for 2015-16 and the other for 2017. However, these were time-barred.
The Finance Secretary informed the committee that after the approval of the ECC, the Ministry of Finance would release the funds. The committee directed Finance Ministry for arranging a meeting with SBP, the Ministry of National Food Security and Research, and the Flour Association to resolve the matter at the earliest.
Dry Fruit Exporter, Haji Fujan, while briefing the standing committee, said that tax notices worth Rs. 700 million were sent by FBR, despite the fact that they were paying taxes every year. We are being treated unfairly, I have given Rs. 5 lakh for one day to the lawyer, he informed the committee. An item was seized and a three-year tax notice was sent based on it while saying that the earlier valuation was not correct. Goods worth millions of rupees were ruined by unnecessary delays, he added. On which FBR officials said that import and export consignment is permitted.
The chairman and members of the committee said that this matter is very unfortunate as not only the importers and exporters are facing problems but also it is detrimental to the country. Member Policy Customs said that the DG Intelligence should be called as the DG reports directly to the Chairman FBR. Senator Sherry Rehman said that the matter should be made a test case, and a sub-committee should be set up. The committee sought a report from the concerned officials.
The meeting was attended by Saleem Mandviwala, Sherry Rehman, Mohsin Aziz, Kamil Ali Agha, Dilawar Khan, Sadia Abbasi, Syed Faisal Ali Sabzwari and Faisal Saleem Rehman besides officials from Finance Ministry, Member Customs FBR, Chief Commissioner FBR, Chairperson CCP, Customs Member Policy, Director HRM ZTBL, and other senior officials.
