A report submitted to the Supreme Court shows that $15.25 billion was transferred outside the country during the 2016-2017 fiscal year, a local media outlet reported on Saturday.
The 12-member committee headed by State Bank Governor Tariq Bajwa presented the report to the Supreme Court detailing its findings, showing that most of the transactions took place via individual account holders while a considerable amount was transferred via the unauthorised hundi and hawala system.
Sou motu hearing on the issue was started by the apex court after information regarding Pakistani nationals’ failure to pay taxes on assets stashed abroad was taken notice of.
According to the report, outflow of this magnitude strongly impacted the country’s national reserves and exchange rate of the Pakistani rupee. Continued outflows would also cause increased inflation as well.
The federal government had passed the Foreign Assets Ordinance 2018 in March this year after pressure from the top court. The ordinance made provisions for immunity from penalties and taxation over undeclared foreign assets subject to payment of taxes.
SBP Governor admitted that sou motu action by the Supreme Court had encouraged the government to undertake legislative reform over the issue.
