Panel can’t obtain info from abroad

Relevant laws missing to track money trail in Panama Leaks

islamabad — A proposed judicial commission to probe Panama leaks would be virtually helpless to obtain information from abroad about offshore companies

This was stated by a high-ranking government official while briefing members of the Senate Committee on Finance.

“There is no law permitting the government to seek such information,” the bank official told the Senate committee. He, however, assured the senators of extending cooperation to the judicial commission for probing the leaks.

The official stated that the ‘Protection of Economic Reform Act 1992,’ enacted 24 years ago by then government led by Nawaz Sharif to promote business activities places no restraints whatsoever on taking foreign exchange out of the country.

The information took the legislators by surprise, prompting a bemused Senator Mushahidullah Khan of the ruling PML-N to remark: “So there is nothing like money laundering from Pakistan.” And Senator Mohsin Leghari of PPP quipped: “So why are you holding model Ayyan Ali for carrying $500,000 out of the country?”

Regarding Panama leaks, SBP Deputy Governor Saeed Ahmed Khan told the committee that the central bank had no capacity to probe but it would be willing to assist the judicial commission. “And this assistance is practically nothing as you do not have the capacity,” Senator Ilyas Bilour of ANP said. His comments were accepted by all participants.

The standing committee was then briefed about offshore companies by a special guest.

He said that Pakistan had neither the legal framework nor was it part of international treaties in this regard.

“Tracking this money trail is next to impossible from Pakistan,” said Mehmood Mandviwala, a corporate lawyer who is the first cousin of Saleem Mandviwala, the panel’s chairman.

The committee was informed that almost half of the world’s trade was conducted through these offshore companies and one-third of the global wealth was parked with them.

“At the same time, the Protection of Economic Reform Act 1992 was similar to an offshore company,” Mehmood Mandviwala said.

“It allows any Pakistani or foreign investor to take money out of the country without restriction.”