Information in absence of action will not be enough
The treaty being signed with Switzerland to share details of Swiss bank accounts to avoid double taxation would be apparently different from the 2005 treaty that does not allow information sharing. The latest treaty has been under negotiation since 2014 and allegedly has been intentionally delayed to allow account holders to move their funds before the agreement becomes active.
Unconfirmed reports suggest that as much as around $200 billion was stashed in Swiss accounts by Pakistani nationals. Both former presidents Zardari and Musharraf have been accused of having billions in offshore Swiss accounts. Prime Minister Yousaf Raza Gillani was even dismissed by the Supreme Court (SC) for contempt of court after he refused to comply with the court orders asking him to write to Swiss authorities seeking details of then President, Asif Zardari’saccounts being maintained there.
Pressure on countries to share information regarding bank accounts has increased after the Panama leaks which stirred up a worldwide debate on tax evasion and safe havens provided by countries with offshore banking facilities. To access information regarding Pakistani nationals’ accounts in Swiss banks Pakistan first had to become a member of the Multilateral Convention on Tax Matters with the Organisation for Economic Cooperation and Development (OECD) and will become an operational member in 2018.
The motives of the government, led by Nawaz Sharif who himself was named in the Panama Papers leak and is awaiting a decision on his eligibility as PM from the SC, are not clear. The availability of information is only the first step, the necessary scrutiny and action that has to be taken by authorities such as the National Accountability Bureau (NAB) and Federal Board of Revenue (FBR) for example is another story. Going by their performance during the Panama trial one has little hope of anyone being held accountable.
Moreover the legal and illegal methods of transfer of funds have to be reviewed to keep funds from leaving the country in the first place. The information will be of use if it is followed by fair and across the board action.
