ISLAMABAD: The Supreme Court on Monday constituted a 12-member committee to trace undeclared assets held abroad by Pakistanis and suggest measures to retrieve such assets and to stop unregulated outflow of foreign exchange from the country.

For this purpose a set of proposals in the shape of terms of reference (ToR), which had been devised during a meeting of finance experts led by the State Bank governor last week, was earlier submitted to the court. The terms of reference suggest a diagnostic analysis and layout of the current landscapes related to the outflow of foreign exchange from Pakistan resulting in accumulation of assets held abroad by the citizens.

Headed by Chief Justice of Pakistan Mian Saqib Nisar, a three-judge Supreme Court bench that was conducting suo motu hearing of foreign assets ordered the federal government to go through the ToR and come up with an appropriate response within three weeks.

The committee, which will be headed by the SBP governor, will examine the existing legal regime and practices especially related to foreign exchange and taxation, bilateral treaties and multi-lateral conventions which can be used to stem the unregulated outflow of foreign exchange from Pakistan, trace undeclared assets held abroad by Pakistani citizens and retrieve such assets, especially the ones generated with proceeds of crime.

Twelve-member committee constituted to trace and retrieve undeclared assets held abroad by Pakistanis

Among other measures, the committee will suggest suitable mechanism to incentivise Pakistani citizens to voluntarily declare their assets held abroad and bring them back to Pakistan or pay suitable amount in taxes if they intend to keep such assets abroad so that they could contribute to the national exchequer.

The committee will also study the steps taken by other countries to trace and retrieve assets of their citizens in foreign countries.

It will suggest administrative actions and measures that can be taken to achieve the objectives under the existing legislative regime. It will also identify gaps and limitations in the existing legislative framework and suggest suitable amendments for establishment of a robust regime which should be transparent, unambiguous and does not create undue hardships for law-abiding citizens. It will also recommend a mechanism that should be adequate and effective to enable relevant government agencies and departments to stem the unregulated outflow of foreign exchange in future and trace the undeclared assets.

Headed by the SBP governor, the committee will comprise finance secretary Arif Ahmed Khan, Federal Board of Revenue chairman Tariq Pasha, senior advocates of Supreme Court Khalid Anwar and Dr Ikramul Haq, chartered accountant Shabbar Zaidi, tax consultant Mehmood Mandviwalla, additional attorney general Mohammad Waqar Rana, business leaders Bashir Ali Muhammad and Tariq Paracha, senior banker Arif Bajwa and former FBR chairman Nisar Muhammad Khan. The committee can co-opt any member which they deem necessary.

Dual nationality

The same bench of the apex court issued notices to 438 government officers who have not disclosed their own dual nationality or of their spouses and ordered the government to take out an advertisement in two newspapers to reveal the identity of such government officers.

Appearing before the Sup­reme Court, Federal Inves­tigation Agency (FIA) Director General Bashir Memon said the total strength of the government officers in the country was 172,000. Of them, only 616 officers volunteered to disclose their foreign nationality, whereas 147 others chose not to reveal their dual nationality besides another set of 291 officers were not forthcoming about disclosing dual nationality of their spouses, he apprised the court.

On a query, DG FIA told the court that some information was still pending from different provinces about the foreign nationality.

During the proceedings, the court wondered if there was a restriction on government officers related to dual nationality of their spouses and also inquired whether foreigners could assume a public office in Pakistan.

Establishment Secretary Maroof Afzal informed the court that no foreigner could join a government office in Pakistan though they could be appointed on a special project with the permission of the government. Likewise, he said, government officers were bound to disclose the identity of their spouses.

The SC bench then issued notices to the 147 government officers working in grade 17 and above as well as to their departments and another set of 291 officers for not disclosing about foreign nationality of their spouses.

Earlier, the court had asked for a mechanism to ascertain the identity of government officers who failed to disclose their dual nationality. It conceded that there was no law barring the civil servants from holding dual nationality but observed there could be a conflict of interest that could prejudice their service to Pakistan.

Girls’ college

Meanwhile, the Chief Justice of Pakistan sought a report from the Lahore High Court about a stay order granted seven years back on the construction of a girls’ college in Narowal on the request of Interior Minister Ahsan Iqbal who appeared before it in a suo motu case regarding exorbitant fee for the issuance of National Identity Card for Overseas Pakistanis (NICOP).

During the proceedings, the chief justice observed that the interior minister appeared to be angry and also highlighted the issue of abuse of power in the Hujra Shah Muqeem near Okara where an amenity plot reserved for a public park had been converted into plots before being sold.

It was the duty of the minister to resolve the matter, the court observed, adding the interior minister had a pivotal role when it comes to leading the nation.

In response, the minister tried to brush aside the impression that he was angry and then brought to the attention of the chief justice about the college issue. Mr Iqbal informed the court that a college for boys had been built in the area but the construction of the girls’ college had been stayed for the past seven years. He asked the court to take notice of the prolonged delay in the construction of the girls’ college.

The chief justice assured the minister that the issue would be resolved within a week but suggested not to take courts as enemies. The minister, however, responded that he had brought the matter because he saw the courts as friends.

The court, meanwhile, also directed the minister to consider giving relief to the expatriates living abroad by reducing the NICOP fee.

Published in Dawn, March 27th, 2018