News Today: Pakistanis Have Been Withdrawing Their Assets From Swiss Banks
The Swiss National Bank being Switzerland’s central bank published an annual report named as “Banks In Switzerland 2019” for the year of 2019 and revealed the fact that total revenue of Pakistanis had decreased by more than 50% in a matter of just a few years. 2019 marked the lowest asset Pakistanis had in Swiss banks which was $377 million. Since the year 2015, Pakistanis have been withdrawing their assets from Swiss banks willingly. This trend was initiated because of the revision in taxation policy between Switzerland and Pakistan which did not benefit anyone at all, not even Pakistan as a country.
Pakistanis have been constantly withdrawing their funds from the Swiss banks since 2015 when Pakistan and Switzerland finalised a revised taxation treaty. Since then, there has been a reduction of 75% or CHF 1.2 billion in deposits held by Pakistanis.https://t.co/ThFdjN0Rkp https://t.co/MkbptSrnMb
— Dr. Ikramul Haq (@DrIkramulHaq) June 26, 2020
Asset Of Pakistanis In Switzerland
Pakistani elite class has always stayed notorious among the eyes of the common man for keeping a major chunk of its wealth abroad especially in Swiss banks. The elite class prefers Switzerland because of the fact that this country has a very welcoming and friendly ambiance for investors as well as people who just like to receive a happy amount of interest on their money.
At its peak, Pakistanis had a mind-boggling $1.5 billion in the Swiss banks in 2015. And this number was a result of just the direct assets, according to the report. However, since the new taxation treaty between Pakistan and Switzerland resulted in reservations from Pakistani community, Pakistanis started to draw out their assets from the Swiss banks quite silently.
In 2018 alone, the entire Pakistani asset in Swiss banks toppled to just $754 million. However, an interesting point to be noted is the fact that Pakistani assets in the form of trustees or wealth managers have increased quite a bit, reaching to $527 million in 2019 from $316 million in 2018. Just an year worth of difference recorded a spike of $211 million.
Report Bashes The Federal Board Of Revenue
The report also did not forget to mention Switzerland’s views on the filthy and ineffective administrative structure of the Federal Board of Revenue (FBR). The report says that the PM in office at the moment Imran Khan has impeded the ability of Pakistan as a country to take benefit from exchange of information that takes place Organisation for Economic Cooperation and Development (OECD).
PM Imran can be full of admiration for his institutions all he wants, however, the ground realities might like to differ.
What are your thoughts on this? Let us know in the comments.