PM Imran Khan Instruct Lawyers to Assist in Stopping Financial Crimes
The PM addressed through a video call about the release of the High-Level Panel’s interim report on FACTI Transparency, Financial Accountability, and Integrity. He mentioned that every year, dollars’ worth billions illegally leave developing countries.
He declared that the government has come up with a public mandate that will help in removing financial corruption from the country. He added that the strengthening of cooperation on an international scale is needed in order to capture the perpetrators.
He welcomed the FACTI Panel’s Interim Report. Imran Khan also adds that the number of unlawful flows is increasing by the days and about $1 trillion is stolen every year by them.
These offenders take bribes of around 20-40 billion. Moreover, $7 trillion in the shape of stolen resources is kept in secure tax destinations. The PM also added that auditors in Pakistan play a huge role in this whole process and therefore, audit firms in Pakistan should be closely monitored.
Each year, about $5-6 billion is lost due to tax avoidance committed by multinational corporations.
Imran Khan adds that this form of bleeding out of countries must come to a stop, in which he adds bribery and corruption as well. He then discussed a list of proposals that should be implemented.
1) for the stolen resources of the country, which includes the contents of bribery and corruption, to be returned.
2) for financial and criminal penalties to be applied to the institutions that use and process such money by authorities in the ‘haven’ destinations.
3) lawyers, intermediaries, and accountants, who are the ‘enablers’ of bribery and corruption, must be monitored and regulated closely.
4) upon inquiry of the government, the beneficial possession of overseas companies should be revealed.
5) through the implementation of a global corporate tax, the profit shifting system of multinational companies which they use to avoid taxation can be stopped.
6) the revenues from transactions made through digital platforms should not be taxed anywhere other than the place where the revenue was generated.
7) a better system for arbitration of investment should be set up and unequal investment pacts should either be revised or discarded.
8) all non-official and official bodies that have been made to monitor and control illegal financial flows should include all involved countries.
9) a mechanism should be applied by the UN to supervise and coordinate the work and movement of non-official and official bodies that are dealing with illegal financial flows so that consistency and coherence are ensured.
Due to the recession caused by the pandemic, developing countries need to focus even more on the preservation and protection of their resources. Imran Khan says that if such steps are not taken, then countries will continue to suffer till bankruptcy takes place.