SUO MOTU ACTION TAKEN UP IN COURT vs N/A
This matter comes before the Supreme Court of Pakistan by way of a suo motu action regarding Pakistani citizens maintaining undisclosed foreign bank accounts and assets, including those revealed in the Panama Papers and Paradise Papers, allegedly representing illegal gains or tax evasion. The core legal question concerns whether the siphoning of national wealth abroad without tax payment constitutes a violation of the fundamental rights of citizens of Pakistan and a matter of public importance warranting the Court's intervention. The Court held that such actions bleed the national economy and violate fundamental rights. Consequently, the Court invoked its jurisdiction under Article 184(3) of the Constitution of the Islamic Republic of Pakistan, 1973, and issued comprehensive directions to the State Bank of Pakistan, the Federal Board of Revenue, the Securities and Exchange Commission of Pakistan, ministries, and intelligence agencies to submit reports, identify account holders, collaborate through international agreements, and take steps for the retrieval of stashed funds. The key principle laid down is that the illicit transfer of national wealth abroad is a matter of great public importance engaging fundamental rights, obligating state institutions to trace and retrieve such assets.
- Does the maintenance of undisclosed foreign bank accounts by Pakistani citizens constitute a matter of public importance involving the enforcement of fundamental rights?
- Can the Supreme Court of Pakistan exercise jurisdiction under Article 184(3) of the Constitution to direct state institutions to investigate and retrieve wealth siphoned off abroad?
- What obligations are placed upon the State Bank of Pakistan and the Federal Board of Revenue regarding citizens identified in leaked documents like the Panama Papers and Paradise Papers?
- Article 184(3), Constitution of the Islamic Republic of Pakistan, 1973
It has been common knowledge for years that a large number of Pakistani citizens, who are residents of Pakistan and are maintaining accounts in foreign countries without disclosing the same to the authorities competent under the Laws of Pakistan or paying taxes on the same in accordance with law. Prima facie , it appears that such money is siphoned off without the payment of taxes through illegal channels and represents either ill-gotten gains or kickbacks from public contracts. Such money creates gross disproportion, inequality and disparity in the society , which warps economic activity and growth, and constitutes plunder and theft of national wealth.
2. Recently , the names of a large number of Pakistani citizens were disclosed in the Panama Papers and Paradise Papers. The Chairman, Federal Board of Revenue (FBR) had appeared before the Court and made a statement that appropriate action was being initiated against the citizens whose names had appeared in above said papers.
However , no appreciable progress appears to have been made in this regard. The society and economy of the country is being bled by illegal and surre ptitious theft of national wealth, which is stashed in foreign countries, the same could otherwise be utilized for the welfare of the people in projects such as education, health and public welfare. Such delinquency constitutes violation of the fundamental rights of the citizens of Pakistan and is a matter of great public importance.
3. Therefore, in exercise of powers under Article 184(3) of the Constitution of the Islamic Republic of Pakistan, 1973, we direct as follows: i) The State Bank of Pakistan shall before the next date of hearing submit a compr ehensive report regarding steps which have been taken under the International agreements/treaties/protocols to identify the citizens who hold accounts in foreign jurisdictions, including UAE, Switzerland, Luxemburg, Spain, UK, etc. and other tax haven jurisdictions, including, British V irgin Islands, Cayman Islands, Channel Islands, etc. ii) The State Bank of Pakistan, the FBR, the Security & Exchange Commission of Pakistan and the Ministry of Finance shall submit report about the steps taken, in collaboration with other State institutions, for retrieval of the said money . iii) The Federal Board of Revenue shall also submit a report providing details of the steps taken on the basis of information available, inter alia, through Panama Papers and Paradise Papers and the action taken against citizen s holding properties and banks accounts in foreign countries. iv) All State agencies including IB, ISI, MI and FIA are directed to share all requisite information available with them with this Court. v) The State Bank of Pakistan, FBR, the Ministry of Finance and Ministry of Foreign Affairs shall collaborate with each other , collect and share information and approach the afore-noted foreign jurisdictions to obtain such/other further information, as may be necessary , through legal and diplomatic channels.
4. Let responsible of ficers, conversant with the necessary facts appear before this Court on 15.02.2018 .