ISLAMABAD: Experts on international law said on Friday that Pakistan lacks the legal mechanisms to claim foreign assets owned by its nationals in countries that had deported them and where they had allegedly bought the properties with illegally-obtained money.
The debate on the repatriation of foreign assets owned by Pakistanis abroad ensued after the government on Thursday produced before the Supreme Court a list of 20 individuals who owned 120 properties in the United Arab Emirates (UAE).
In a previous hearing, in a case relating to the illegal transfer of money from Pakistan to foreign countries, the court was informed that Pakistanis own around $150 billion worth of properties and assets in the UAE alone. “Pakistan doesn’t have any legal treaty with the UAE to get the assets of its nationals repatriated,” Muhammad Habib Ullah Khan, a Supreme Court advocate and an expert on international law, told Arab News.
He added that Pakistani authorities can identify the assets bought by its nationals in the UAE, but cannot initiate any legal proceedings in the host country to retrieve them.
Khan said that even if Pakistan were to sign a legal treaty with the UAE for the recovery of the assets, “it is a futile exercise.” “The government will have to first establish in the local courts that these assets were bought with looted money,” he said, adding that the administration is trying to recover illegally-obtained money and assets stashed abroad, but the problem is that “our existing laws doesn’t support the exercise.”
Khan suggested that the government should formulate a cogent law to pursue the recovery of foreign assets as otherwise “this will be nothing but a political gimmick.”
The Federal Investigation Agency (FIA), a government-appointed agency that is leading the probe to establish and recover illegally-obtained money, informed the court on Thursday that it had identified 894 Pakistanis who owned properties in the UAE, of which 374 had disclosed their assets by taking part in the amnesty scheme recently, even as 150 nationals had neither disclosed nor paid taxes for the same.
Attorney General Anwar Mansoor informed the court that the government could either ask these individuals to pay their taxes or recover it from them, adding that the Asset Recovery Unit was already working on implementing these plans.
State Bank of Pakistan Governor Tariq Bajwa also informed the court that Pakistani banks working in the UAE were not under any obligation to respond to the requests for details of certain accounts.
“If somebody thinks that the UAE government will sell the properties and hand over the proceeds to Pakistan, it is very unlikely,” Barrister Masroor Shah told Arab News. “The reason is that these Pakistanis didn’t commit any illegality there. They bought the properties after fulfilling all the legal requirements.”
Shah said that Pakistani authorities have been working on the basis of speculations that the foreign assets were bought by laundering money. “Until and unless it stands proven in the courts and all avenues of appeals stand exhausted that these assets were bought through ill-gotten money, you can’t do anything,” he said.
“These efforts on part of the government and the court may help curb money laundering from Pakistan, but repatriation of the foreign assets at this point seems highly unlikely, especially in the absence of specific laws to support this whole exercise,” he said.