Return of $100 billion: government urged to sign pact with Swiss government

Transparency International on Saturday called upon the government to sign an agreement with Swiss government for return of $100 billion deposited in Swiss accounts by Pakistani nationals.
Transparency International Pakistan Chairman Sohail Muzaffar, addressing a seminar on presentation of 'Integrity Shields' on accountability and performance of Public Accounts Committee (PAC), organised by the TI, suggested that Pakistan should follow in the footsteps of UK, US and German governments and should try to sign an agreement with Swiss government on the same line as the trio did.
"It has been agreed through an agreement that the tax-evaded money, deposited in Swiss accounts, shall be subjected to tax at the rate prevailing in the country, of whose national that account is traced, and that tax will be paid to the country", he said, adding that the TI would like to place before PAC that from various reports of WB, Pakistani nationals have deposited $100 billion, approximately, in Swiss accounts.
"According to a conservative estimate, if we apply current Pakistan tax rate of 25 percent, we can easily get over $20 billion in back taxes and will also earn amounts of taxes in future, and such money may be available for the development, or we may use that money for the payment of our debts", he suggested.
He also urged the PAC to look into the matter of accountability so that accountability law be passed, besides looking into the anti corruption law which is being misused by FIA causing disturbance to the entire setup. Transparency International Pakistan has noted with concern that till date the freedom of information law has not yet been implemented and the freedom of information bill be made into statute, he added.
Appreciating the role of the PAC, the TI chairman said that it has been observed and reported that Rs 115 billion of embezzled/misused money has been traced or recovered in the last three years which by all means is a remarkable achievement which none of the earlier parliamentary committees in the history of Pakistan has ever succeeded in achieving such a target. He also congratulated the chairman and the members of PAC on the success.
He stated that it was a matter of record that corruption reduced the productivity of public investment and destroyed the entire infrastructure of the country as the entire system of recovery of tax revenue was hit due to corruption in the departments. "The money which should go into the government's coffer goes to the individual and thus destroys the entire system", he observed, adding that that PAC was deterring in the way of corruption. He questioned the mode of recovery of Rs 115 billion by the PAC, questioning whether the money was recovered and deposited in the government treasury.
The Transparency International Pakistan chairman also gave suggestions for the PAC for consideration, saying that rule 5 of PPRA, has been changed to give waiver in respect of certain contracts whereas rule 5 provides that no contract should be awarded without tender.
He said that it had come to the knowledge of TI that about 39 MoUs have been signed by the government and it was apprehended that PPRA rules would be flouted in awarding contracts with whom the MoUs have been signed. He, therefore, urged the PAC to keep an eye on such award of contracts so that PPRA rules may not be violated and no waiver of rule 5 should be given without the consultation of PAC.