Pakistan’s Money in Swiss Banks Falls by 33% to Hit Record Low

Pakistan’s Money in Swiss Banks Falls by 33% to Hit Record Low

Pakistan’s Money in Swiss Banks Falls by 33% to Hit Record Low
Pakistan’s Money in Swiss Banks Falls by 33% to Hit Record Low

According to the figure released by Swiss National Bank’s annual statistics report, According to the report, Pakistani money in Swiss banks had fallen by 33 per cent to a record low of CHF380 million (Rs63 billion) in 2018. It also signals the first time in four years that Pakistan has been surpassed by its bigger neighbour India, which accounted for over CHF572 million. There is nothing in the SNB report to suggest that the funds are from illegitimate sources.

However, it may be interesting to note that the official figures disclosed by the SNB did not include the money that foreign clients of Swiss banks might have kept in the name of shell companies.

Pakistan has recently signed an agreement with Switzerland for the automatic exchange of banking information (AEOI) that is awaiting Swiss parliamentary approval. This will ensure that financial information on bank accounts held by Pakistani citizens in Switzerland and vice-versa will be shared annually on an automatic basis. It is expected that both countries will begin collecting banking data from 2020 and exchange information on an annual basis from 2021.

In March 2017, former Finance Minister Ishaq Dar announced Pakistan had signed a new treaty with Switzerland to pave way for the exchange of information on the undeclared wealth stashed in Swiss banks.

In an effort to prevent losing its status as a global financial hub, Switzerland signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters in 2014. The Swiss parliament approved the deal in 2015, the treaty was ratified in 2016, and it came into effect on January 1, 2017.

Add comment