PM asks ‘haven’ states to return stolen assets

ISLAMABAD – Prime Minister Imran Khan Thursday urged the world community to seek commitment from the “haven” countries to return all foreign stolen or illegitimate assets, and develop international anti-money laundering legal instruments.

Addressing as a keynote speaker at the virtually held launching ceremony of the Final Report of the High-Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Development Agenda (FACTI Panel), the prime minister called for considering the OECD’s (Organisation for Economic Co-operation and Development) proposal to freeze and return the unexplained assets of foreign “Politically Exposed Persons”.

The event was also addressed by 75th President of the General Assembly Volkan Bozkir and 76th President of the Economic and Social Council Munir Akram. The report presents 14 recommendations to reform, redesign and revitalize the global architecture, so it can effectively foster financial integrity for sustainable development. Besides, it stresses for strengthening coordination and global governance related to financial integrity as an essential component of the common agenda for the common future of present and coming generations.

Urging for some quick concrete actions, the prime minister first emphasized on “a commitment by “haven” countries to immediately and unconditionally return all foreign assets that were shown to be stolen or whose “legitimacy” could not be explained. “The OECD’s proposal to freeze and return the unexplained assets of foreign ‘Politically Exposed Persons’ is worthy of consideration.”

The prime minister asked the international community to initiate negotiations on the new international tax cooperation and anti-money laundering legal instruments, like the Convention on Corruption.

The adoption of common principles identified by the FACTI Panel to apply to all financial transactions, and establishment of a UN coordination, adjudication and mediation mechanism on illicit financial flows also comprised the quick concrete actions proposed by the prime minister, who is now globally recognized for his efforts against corruption and money laundering for his decades long struggle to purge the country of the very evils.

Imran Khan told the audience that his government had inherited a country with empty coffers, denuded by huge and accumulated trade and fiscal deficits, but “more than that, by illicit financial outflows from our country”.

Ravi City project to create numerous economic opportunities

He viewed that the FACTI’s Interim Report confirmed that due to political and official corruption, as well as crime and tax evasion, trillions of dollars flow out of developing countries each year.

 “Seven trillion dollars in stolen assets are parked in the financial ‘haven’ countries. The flight of these vast resources from the developing countries is a principal cause of their under-development, poverty, inequality and political instability,” he remarked.

The prime minister recalled that during the consideration of the Interim Report in September last year, he had suggested several global policy actions, including immediate return of stolen assets, and penalties on the financial institutions, lawyers and accountants, and other “enablers” of corruption, crime and tax evasion.

The disclosure of the “beneficial ownership” of companies; a global minimum corporate tax; fair digital taxation; review and revision of unequal investment treaties; and a coherent mechanism for monitoring illicit financial flows set up under the United Nations were also part of his proposed policy actions, he added.

Expressing pleasure over the Final Report of the Panel marking his proposed policy actions, the prime minister said it was a systemic problem, embedded within the international financial architecture.

“It requires a systemic solution. It cannot be resolved by piecemeal or cosmetic actions. The magnitude of the illicit financial flows is staggering. If recovered and returned, they can have a transformational impact on the development prospects of the developing countries.”

Quoting the report, the prime minister said it could enable the developing countries to eradicate poverty, reduce inequalities, build back better after the COVID crisis, address climate change and strengthen human rights.

He also endorsed the three-point plan proposed by the panel, including applying international “values” of honesty and integrity to all financial transactions; strengthen policy frameworks; and reform and reinforce the relevant institutions dealing with the illicit financial flows. He viewed that the said responses could form part of a Global Pact for Financial Integrity.

Imran Khan called for regulating national and cross-border financial transactions under a “values-based” system, encompassing accountability, transparency, legitimacy, fairness, inclusion and equity.

He also called for reflecting the said “values” in all national and international financial instruments, institutions and transactions – and particularly in those bodies, which addressed illicit financial flows.

Asking for improvement of global financial governance, Imran Khan stressed for implementing policies on illicit flows in a coordinated and coherent way by national and international institutions and bodies.

 “International bodies dealing with tax matters, corruption and illicit financing should be inclusive and representative. They should not be used as instruments of pressure and coercion against developing countries,” he underscored.

He said a global forum, under the UN, should coordinate all bodies dealing with the technical, legal and political aspects of illicit financial flows. It should incorporate a mechanism to adjudicate and mediate disputes on issues relating to illicit financial flows, he added.

 “It’s now time to act on the recommendations of the FACTI Panel. Pakistan will be happy to join in proposing the adoption of the FACTI Panel Report by the United Nations Economic and Social Council and the General Assembly.”

He also assured the world community that Pakistan would work actively with all like-minded countries to realize said vital objectives. The FACTI Panel is the High Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda. It aims to improve the world’s chances of achieving sustainable development by making recommendations that both strengthen current efforts to combat illicit financial flows, and close remaining gaps in the international system.

Ravi City project

Prime Minister Imran Khan on Thursday said that Ravi City project besides catering to the residential and other civic needs of Lahore would also create numerous economic opportunities for people from across the country.             He directed to keep him continuously informed about the progress of Ravi City project.

The prime minister was presiding over the weekly meeting here about the establishment of Central Business District in Lahore and the Ravi City project.

He was briefed about the progress made so far on the Ravi City project and was told that special attention was being given to the issue of environment in the proposed project. The prime minister was told that modern means of agriculture and vertical farming would be promoted in Ravi City, which will not only help enhance productivity but will also ensure maximum utilization of land.

The meeting was further told that in order to give as easy access to the proposed Ravi City, a 20-kilometer long road would be constructed from Lahore Motorway for the ease of Ravi City residents.

About the establishment of Central Business District at Walton, Lahore, the meeting was told that owing to the dense population and the safety of people, shifting of Walton airport, which was used for training flights, to a safer place was much essential.

The prime minister expressed his concern over the occurrence of some two to three accidents at Walton airport due to population during the last few years, however causing no loss of lives.

He was told that with the establishment of Central Business District, the land worth billions of rupees could be utilized for full-fledged economic activities.

Construction activities to provide employment

Prime Minister Imran Khan says promotion of construction activities will not only speed up the economic activities but also provide employment opportunities.

He was chairing weekly meeting of National Coordination Committee for Housing, Construction and Development in Islamabad on Thursday. The Prime Minister directed all Chief Secretaries to be vigilant for the approval process so that it is not delayed in any way.

He directed to formulate a new course of action with regard to new societies and construction projects as well as existing unapproved or illegal housing societies. Regarding the provision of assistance by the government for the low-income people through Akhuwat, the meeting was informed that the government had provided five billion rupees to the social organisation.

Considering the success of this project, the government decided to provide another five billion rupees to Akhuwat. The meeting was informed that under the Akhuwat project, construction of 16,000 houses will be completed by the end of this year. The Prime Minister directed to ensure that all approved societies are making arrangements for the provision of data on their respective websites.