Pakistani Funds Stashed In Swiss Banks Down By A Considerable Margin
The Swiss National Bank, annual statistics report on Thursday released figures and corresponding data pertaining to Pakistani origin funds. According to Swiss Info, a little over CHF380 million ($388.58 million) in Pakistan-origin funds were held in Swiss banks at the end of 2018, a drop of more than a third compared to 2017.
The report further suggests that funds linked to Pakistani clientele of the bank stood at $738 million in 2008. The same is down by CHF 376 million or 34% as per the report.
It is pertinent mentioning here that since Pakistan and Switzerland finalized a revised taxation treaty, the country`s clientele has been withdrawing funds constantly.
According to the signed agreement titled. ‘Automatic exchange of banking information (AEOI)’ between the two governments, financial information on bank accounts held by Pakistani citizens in Switzerland and vice-versa will be shared annually on an automatic basis.
Swiss Info reports that countries will begin collecting banking data from 2020 and exchange information on an annual basis from 2021. It is important to note that India has already begun sharing information with Swiss authorities while the agreement in question with Pakistan awaits Swiss parliamentary approval.
Switzerland which is known as a global financial hub signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters in 2014. This move came in to protect its stature in the global financial world.
The first exchanges took place with European Union countries and other developed nations that already met global AEOI standards.
The incumbent government has reiterated its stance to bring back the stashed funds abroad, the majority of which constitute funds in Swiss Banks.