Chowkwalas Interview Pak. Law Minister

Khalid Anwer, the Federal Law Minister of Pakistan, visited Chowk on Monday July 27 1998, and graciously agreed to answer questions from Chowk readers.

Chowkwalas registered their questions using the Interact! feature before the 27th of July. The answers to the questions were subsequently compiled and are posted below.

We at Chowk sincerely thank Mr. Anwer for taking time to respond to all questions posed by Chowk readers.


Note:Since there were more questions than anticipated, the answers
had to be somewhat brief.




Ferozk:

A question to Khalid Anwer, Federal Law Minister, Pakistan Government:

My question is twofold: First, if Pakistan files a complaint against the United States in a US court,
will Pakistan be asking for the return of F-16A\Bs, as orginally purchased, or will it ask for the
return of those planes with MLU (Mid-life Upgrades) as a provision included in the settlement claim
? Secondly; Is Pakistan, after filing its claims, willing to settle with the Americans out of court, if the
US offers to deliver the 28 F-16s, not A\Bs, but the C\Ds of block 60 types with the MLUs for 38
remaining Pakistani PAF F-16A\Bs to bring them to F-16C\D specifications ?


Minister: We are preparing to file a suit and it would be premature to make any
comments.




Born to Be:

Is there ever a chance of there being any LAW in Pakistan? Can I come to Pakistna without thinking
when is my car going to get stolen, when are dakoos going to enter my house, is the dollar going to
be frozen again, will my child be kidnapped, is the MQM going to collect bhatta from me too if I
open up a business?

Can I ever come to Pakistan and live a normal life?


Minister:

If you are looking for a utopian society, you won't find it on the
planet Earth. We are trying to improve the law and order situation in
Pakistan as well as the economy but we still have a long way to travel.




hrusa1:

The president of Pakistan, the supremecourt of Pakistan confirmed that during Benazir's regime 1800
people were killed extra-judicially.B's government was dismissed on this acount besides other
reasons. However no case has ever been registered against Benazir, Naseer Ullah Baber or other
law enforcement officials for ordering the murders of Pakistani citizens.

Murder is a capital crime punishable by death sentence. Is it not a cover up by the present regime?


Minister:

There is a legal technicality involved here. The Supreme Court
confined its judgement to the limited question as to whether there was
"material" before the President which justified the dismissal of Benazir
Bhutto's Government. In cases of a criminal prosecution for murder a
high standard of proof is required. Broadly speaking, this is akin to
the difference between the standard of proof required in a civil case
and a criminal trial. The O J Simpson case brings out the point very
clearly.




temporal:

1: Since the tail end of Ayub regime there is a strong perception that law is for the privileged.

Countless events, that need not be rehashed here, support this perception . What are you doing to
restore the rule of law?

2: If the Army takes over in future. suspending or abrogating the constituion, will they be considered
"traitors" under this constitution.

3: What makes the ruling party elders and associates above the law?


Minister:

4. Part 1 It is somewhat surprising that you should consider a Martial
Law regime as meeting your requirement for an egalitarian legal system.
Today there is greater openness in Pakistan society. There is complete
freedom of the press. There is an independent judiciary and we are
moving in the right direction.

4 Part 2 We have a responsible and mature military and there is no
possibility of the constitution being abrogated. However, the
constitution does declare that any such attempt amounts to treason.

4c. They are not above the law.






Amin Saleh:

Dear Sir,

While Pakistan is so vocal on acquiring technological transfer at every stage, should we not also
focus on establishing foundation for acquiring it. Technology transfer might cost Pakistan a lot of
money but implementing the Commercial Law framework would be free of cost.

1) What I mean by this, while we might have given a new cover to our Corporate Law (as
Companies Ordinance 1980) our law still continues the way it was designed over 50 years back.
Companies are forced to issue not more than 50% of their capital as the government tries to enforce
management participation. Briefly in the past companies could have raised 80% of the issued capital
by using Modarabas but no more.

A step towards formulating the Treasury Stock framework is underway. But the way it is implemented
in the west is that only 25% of the average stock traded in the last three month is allowed to be
acquired. I have not seen such a proposal from Pakistani legislators simply because there is no
floating stock in the market.

2) The bankruptcy laws are something to be desired. There is no framework similar to Chapter 7 and
Chapter 11 prevailing in the United States. Furthermore, foreclosure requires a lot of legal
processes. This causes the banking system to be inefficient.

3) Public Accounting has been a monopoly for the last 50 years in Pakistan. Why have the
Chartered Accountants been given this monopoly.

In Canada, a number of Provinces have taken the step allowing both Certified General Accountants
to certify financial statements and undertake public accounting services with the same status as
Chartered Accountants.

In United States (in a number of states), persons wanting to pursue a career as a CPA do not have
to undergo a compulsory term as an intern with a public accounting firm. They just have to qualify a
State Examination to qualify for their CPA designation. A number of Canadian undertake this exam
every year.

In Pakistan, CMA's undergo extensive training as Accountants. Furthermore, there are MBA's that
may be able to qualify the exam if given a chance. But the ICAP requires that all CA candidates
undergo a compulsory term at its members firm. This is highly discrimatory and results in the
candidates being paid stipends that do not attract persons with intelligence and skill. As they would
rather go for MBA which is acceptable around the world, unlike CA from Pakistan which is not worth
the paper its written on in countries like UK, Canada, Australia, etc.

4) Finally, what will it take to integrate the agricultural sector into the main economy. Why is the
sector exempt from income taxes and why all taxes are regressive. If the income of the farmer is not
at the taxable level then he should be able to get a tax credit. Taxing the agricultural sector may
even have other positives, eg., accountants and auditors would move to rural locations and offset
the continuous migration to the urban areas.

Again look at the systems prevailing in Canada and United States. This allows tax credits based on
minimum sustainance allowance per each individual in the family. In Pakistan, on the other hand,
only the earner gets a Rs.40,000 break but if his family has 5 persons he gets no additonal
advantage than a person who gets a Rs.40,000 break and is supporting only 2 persons.

Tax laws in Pakistan are designed more to raise revenues rather than to enhance quality of lifestyle
and equitable distribution of wealth. Regressive taxes are more prevalent than Progressive. And
people are not educated to understand the burden of such regressive taxes.


Minister:

5. Part 1. Our Company's Ordinance was enacted in 1984. I do not know
how you have come to the conclusion that it was designed over 50 years
back. Your opinion that companies are forced to issue not more than 50%
of their capital under the Companies Ordinance is incorrect. So is your
view regarding management participation. As a policy, in the past, (as
distinct from the Companies Ordinance), the government did not want to
enforce management participation but to enable the public to participate
tin the equity. However, these restrictions are gradually being eased.
Your opinion about Modarabas is not merely misleading but totally
incorrect. I do not know on what basis you have suggested that steps
towards formulating what you have described as the treasury-stock
framework are underway.

Q5 Part 2. Bankruptcy Laws do exist in Pakistan but there is very little
recourse to them. Chapter 11 in the US pertains to protection for
defaulters and thus introducing it in Pakistan will be
counter-productive in so far as the banking system is concerned. Your
view regarding foreclosure is also incorrect. A bank can foreclose if
there is such a provision in a mortgage deal, without even going to a
court of law.

Q5 Part 3. Every country has certain minimum requirements and I see
nothing wrong in requiring Accountants to take an examination so as to
ensure that they meet certain minimum standards. Our system of
Chartered Accountants is essentially based on the English system and the
mere fact that a different system may exist in some parts of the US is
not a compelling reason to change.

Q5 Part 4. Agricultural income tax is a difficult political issue.
Unfortunately under the constitution of Pakistan the federal government
has no jurisdiction in this area. This has to be regulated by the
provinces and recently Punjab has introduced an agricultural tax.
Pakistan has both direct and indirect taxes. Tax laws in all
non-socialist economies are essentially designed to raise revenue. In
Pakistan both Income Tax as well as Wealth Tax are progressive taxes.
As against this, Sales Tax is generally a flat tax throughout the world
and at present the suggestions being made by various multi-lateral
lending agencies is that greater reliance should be placed by the
Government on Sales Tax.






Obaid:

Q. What steps are being taken/will be taken to improve the legal/court system in Pakistan?


Minister:

The Government is embarking on a major reform of the legal system and
the Asian Development Bank has agreed to make available substantial
funds for this purpose which it is hoped will be disbursed commencing
1999. Foreign consultants have also been nominated by the Bank to
assist the Government in this connection. It is hoped that the World
Bank will also insist in this endeavor. The reforms will be designed to
modernize the legal system, to provide an effective framework within
which economic development can take place and which will be attractive
to foreign investors. The criminal justice system will be overhauled to
provide for a quicker disposal of cases.




Disgusted

Mr Minister:

1. When will Ittefaq return the billions it has "borrowed"? And what has your ministry done to
recover this money?

2. A member of assembly, a brother of a serving prime minister and a son of a former prime minster
was repeatedly shot till his death. This was done in Clifton in Karachi. Everybody knows who was
there and who was not there. My question is: "Under Pakistani system of justice HOW MANY
YEARS would it take before JUSTICE is done?

3. STORMING OF THE SUPREME COURT...would you say that Muslim league was NOT involved in
this? Also will there be any JUSTICE in this case.

4. Given that the murder case of the first prime minister of Pakistan remains unresolved to date,
would you say we have ANY justice whatsoever in Pakistan?

5. "ACCOUNTABILITY"...would you say all those in the present government are innocent?

6. I am a "so called" overseas Pakistani. Your government has "Stolen" all the dollars I saved during
long and hard 30 years of my work. At the end of these 30 years I find myself my accounts frozen
and I can't even pay $200 to my university going son. I am not a defaulter, I am not a thief and I
never got ANYTHING FROM ANY GOVT. Now you have taken the right of my kids to study in a
decent university. Do you believe that in the name of sacrifice and pariotism I should sell you
something for Rs 46 which otherwise fetches Rs 60 in the market?

Will Nawaz Sharif give back the billions he has taken from us?


Minister:

7. Part 1. It is important to distinguish political propaganda from the
facts. The Prime Minister's family's companies were forced to default
in the PPP regime through an illegal issuance of orders by the
Government to the nationalized banks. Before the PPP era, the Ittefaq
Group had an excellent record of loan repayments to the Banks. During
that period, it filed suits in court for damages for the enormous losses
caused to it. Despite this fact, the Prime Minister in an unprecedented
gesture, had turned over assets of Ittefaq to the Banks voluntarily.

Q7 Part 2. Your question is to how many years it takes for justice to be
done in a criminal case in Pakistan. I will revert to this in relation
to Question 10. However, in the case to which you are referring,
criminal prosecution has been launched and in most countries in the
world, a considerable time elapses before a final verdict is delivered.
All you need to do is to check out the position in the US.

Q7 Part 3. This matter is pending before the Supreme Court of Pakistan
and it would inappropriate for me to make any comment on a matter which
is subjudice.

Q7 Part 4. If the mere fact that one murder case remains unresolved
leads you to the conclusion that no justice whatsoever exists in
Pakistan I would advise you to refer to the thousands of such similar
cases in every country of the world.

Q7 Part 5. In every case in which credible evidence of wrongdoing
exists, it is the policy of the government to institute a criminal
prosecution.

Q7 Part 6 The question of the foreign currency accounts has caused a lot
of anxiety and concern to the government. I sympathize with you.
However, the government did face an extremely difficult situation in
which the liabilities exceeded the assets. In order to compensate the
foreign currency account holders, who, it may be mentioned, were being
paid a higher rate of profit/interest on their deposit in these accounts
than was prevalent internationally, three benefits were conferred on
them:

Firstly, although the official rate of exchange was Rs. 44, they were
offered Rs. 46 per dollar on the date of the decision,
Second, Wealth Tax exemption for six years was given and
Third, an Income Tax exemption was also granted.
These were substantial benefits. However the Government hopes to make
repayments in dollars through the modality of conversion into bonds.






ShariqAta:

Why do we, as a society (in general our Govt.), always look for an escape goat for our
shortcomings? Its always a foreign hand behind each terrorist act. We never catch anybody, all we
do is to kill innocent people in fake encounters. We all know the law enforcing agencies are public
enemy number 1. Why can't we say spade an spade?


Minister:

It is not correct that there is always a foreign hand behind each
terrorist act. It is also not correct that no criminal is caught. At
present, thousands of criminal prosecutions are being conducted in the
country. If you consider the law enforcing agencies as public enemy
number one, how do you rate the terrorists who have killed thousands of
people in recent months and years?






RR

1. Is it true that you and most ministers in the cabinet enjoy drinking (alcoholic drinks, that is)? (A
very reliable friend told me he was in a private gathering where you and others were enjoying the
drinks as if it was a normal thing for you.)

2. Why is the police department so centralized? The federal government sends half-literate, crude
and corrupt policemen from rural and under-developed parts of the country to cities, especially
Karachi, where the educated and sophisticated taxpayers and citizens are harrassed, mistreated
and dealt with in such harsh manners as if they were invaded by an enemy army. 3. Why can't you
have a police force recruited, trained and deployed from within the same towns and cities and from
educated people?

4. Why the training of the policemen does not include good manners when dealing with people? 5.
And why doesn't the police employ latest methodologies in investigating a crime in large cities
where facilities are available instead of torturing the suspects until they confess the crime that they
may not even have committed?

6. I have also heard that the police precincts are bought and sold (a common perception based on
true stories) and that to make up the cost, the police officers ask for bribes, protection taxes and
even employ bandits for robberies and car-jackings. Why does'nt the government do anything
about it to investigate and end such practices?


Minister:

9. Part 1. I have never drunk alcohol in my entire life. If your "very
reliable friend" tells such blatant falsehoods, I wonder what your other
friends are like.

Q9 Parts 2/3/4. When we can afford to pay handsome salaries to the
police, we will be able to find educated and sophisticated members of
the police force. Before then, we have to make do with such people as
are available.

Q9 Part 5. The utilization of the most modern crime detection
techniques requires a massive investment in the law enforcement
agencies.

Q9 Part 6. While it is true that there is corruption in the police
force, it is also true that an attempt is being made to take concrete
steps but the practical difficulty is that hard evidence which can stand
up in a court of law is difficult to obtain.






Deehaati:

The present government seems more interested in adopting adhoc measures rather than permanent
solutions. The example of that in the judicial system are the special courts. While the 'conventional'
system of courts is plagued by a number of problems and the people of Pakistan have lost faith in
getting justice, the special courts hand in death sentences day after day, without allowing the
defendants proper time to prepare defense and in some cases even denying the right to appeal.
While nothing is being done to improve the 'conventional' judicial system, a parallel system of
justice (or injustice?) has evolved that is getting stronger day by day.

My questions are:

1. Does the government plan to make 'special' courts a permanent feature of the judicial system?

2. What steps are being taken, if any, to reform the 'conventional' system of justice?

3. When cases are referred to the Anti-Terrorist courts, are not the defendents labeled as terrorists
even before the actual trial takes place? (or is it a case of 'guilty unless proven innocent'?)

4. Do you think it is a brilliant idea to have special courts and we should make them a permanent
feature of the judicial system? or do you think that they are the need of the day and are helping in
improving the law and order situation in the country?


Minister:

The need for Special Courts arises because the legal system as a
whole is overburdened with cases. Typically, a murder case may take up
to ten years, counting from the trial court to the high court and then
the Supreme Court. The advantage of Special Courts is that only the
most serious offences are referred to them and thus their rate of
disposal of cases is higher. It is totally incorrect to say that the
defendants in Anti-Terrorists Courts are considered guilty unless proven
innocent. The burden of proof rests on the prosecution and it is for
the Court to decide.






Disgusted:

Minister of law:

Here is a legal case "already won" for you to act upon in the national interest.

1. In 1997 I was in Pakistan and found that ALL THE PROFEESORS of a certain university were
FAKE.

2. I filed a complaint with the ombudsman where I repeated the above claim and also stated that the
Vice Chancellor and the Deans of that university, all grade 21 professors, did not even qualify as
grade 19 associate professors.

3. I presented a well documented case based on UGC rules and nobody from the university side
said a word. They had nothing to say , they are all fakes.

4. The ombudsman AGREED with me but he DID NOTHING, though he sent a reference to the
chancellor, the governor of Sindh.

5. The case is well documented. Mr Wahab Shaikh, adviser to the Governor knows it very well

NOW I HAVE AN OBSERVATION AND A QUESTION.

OBSERVATION: ALL those who matter in Pakistan were informed that all professors of a certain
university are fake. Nobody did a thing.

A judge decided that something was illegal but he also declared "I can't and I won't do a thing
except tell the obvious to the governor".

Also I brought this to the notice of a Supreme Court Judge who said "Forget it...I myself get scared
when I pass within miles of that university"

Question: Are you going to ask the governor and ombudsman of Sindh for the case file.


Minister:

I notice that you referred to a case in which you have mentioned
no names and in fact you have even suppressed your own name. In these
circumstances, it is obviously impossible to verify whether you have
stated is true or false.






Amin Saleh:

Sir,

Following up on previous questions:

1) When are we going to abolish quotas. Quotas are Pareto inefficient and leads to corruption and
inefficiencies that plagues Pakistan today.

2) When are we going to revamp the Tenant Act. Th inability of the owner to vacate the property
has left a shallow Housing Finance Market, which continues to be dominated by the HBFC. Since
the defaulter's property cannot be foreclosed without extensive litigation, this has kept investors
away from this market.

3) When are the Overseas Pakistani going to get the right to vote in the elections. Despite the
Supreme Courts decision that Overseas Pakistani should be allowed to vote, no effort has been
made to make provisions at the Embassies around the world.


Minister:

12. At present there are no quotas in Pakistan under the constitution.
However, there is a strong demand from less developed areas of the
country that quotas should re-instated.

Q12 Part 2. While it is true that in some categories of cases it is very
difficult to get a tenant vacated, there are other categories of cases
in which it is much simpler. However, it is proposed to revamp this law
at the time the law reforms are enacted.

Q12 Part 3. The Government has decided in principle that overseas
Pakistanis should have the right to vote in elections. The matter is
now under active consideration so as to devise a practical method which
will on the one hand not swamp the embassies and on the other hand, will
not be liable to abuse.




NAJAM:

QUESTION: Do you think Pakistan will succeed in getting its money back by taking USA to court
which has been done recently?

QUESTION: Making laws in one thing but what has been done to ensure justice that is speedy and
not too costly for the ordinary Pakistani?


Minister:

I hope that Pakistan will succeed in getting its money back.

Q13 Part 2. I have referred in the earlier questions to the law reforms
which are under consideration.






gsm

Mr. Minister, a previous chowk interacter asked a very personal question about alcohol drinking. If

I were you, I wouldn't even dignify that question with an answer. I don't see a problem with social

drinking. Now alcohol addiction is another matter which is transgressing the limits as set forth in our
Holy Book ... a commonsensical limitation. What is the Pakistanian government doing about
alcohol/substannce abuse treatment?

Are there laws on the books for alchol/substance abuse?


Minister:

Drinking alcohol is an offence under Islamic laws.





Imran Husain:

Dear Sir,

My impression of the way the 'Intelligence' agencies operate in Pakistan is that they consider
themselves above the law. These agencies routinely abduct, incarcerate and even execute citizens
of the Islamic Republic. There are no controls or checks on these agencies; it is quite normal for
employees of these organisations to use the unlimited power at their disposal to settle personal
scores or simply bully neighbours. This impression has been gleaned by reading various mainstream
Pakistani publications and talking to quite a few visitors from Pakistan.

Do you recognise that such a problem exists? If so, as Law Minister, do you intend to take any
steps to make these agencies accountable and answerable under the law?


Minister:

While the allegations you have made are certainly exaggerated I do
consider that we need a higher level of accountability in relation to
the agencies. Steps are being undertaken for this purpose.






Noor:

Respected Mr.Minister:

My first question is about the 'Blasphemy Laws'

in Pakistan:

Section 295-C of the Pakistan Penal Code says:

"Whosoever by words, either spoken, or written, or by visible representation, or by any imputation,
innuendo, or insinuation, directly or indirectly, defiles the sacred name of the Holy Prophet
Muhammed (pbuh) shall be punished with death, or imprisonment for life, and shall also be liable to
fine."

While the sentence of death or life imprisonment is mandatory for offenders under Section 295 C,
acts and utterings intended to outrage the feelings of other religious groups are hardly punished. A
person guilty of the latter offense can walk away after paying a small fine (as per

Section 295-A PPC).

Will your excellency opine on the fairness of these laws (or lack thereof)? How do they support our
claim of being a tolerant and free country?

And as you are aware, Mr.Minister, the situation is different in practice. Religious feelings of
minorities are hurt and trampled upon by many who remain unpunished. Is any Muslim ever
prosecuted under Section 295A for offending the religious feelings of Hindus or Christians, even for
that perfunctory slap on the wrist?

Abuse of Section 295-C is also a concern for many of us. While so far no one has been punished
under this law (although the lower courts have handed out several death sentences)several people
under trial have been killed by vigilantes. Have those murderers been ever brought to book?

My second question is about the 1984 legislation targetting Ahmadis/Qadianis.

Section 298-C of the Pakistan Penal Code:

"Any person of the Quadiani group or Lahori group (who call themselves 'Ahmadis' or by any other
name), who directly or indirectly poses himself as a Muslim, or calls, or refers to, his faith as Islam,
or preaches or propagates his faith, or invites others to accept his faith, by words, either spoken or
written, or by visible representations, or in any manner whatsoever outrageous to the religious
feelings of Muslims, shall be punished with imprisonment of either description for a term which may
extend to three years and shall also be liale to fine."

Doesn't the above law violate your sense of justice ? Why can't Qadianis propagate their faith and
proselytize, while everyone else can?



Minister:

The misuse of the Blasphemy Laws have caused the Government serious
concern and, at the moment, a review of these laws is taking place. I
would however point out that the Federal Shariat Court has already
decided that they need to be amended so that not merely Non-Muslims but
even Muslims who hurt the feelings of, for example, Christians, can be
prosecuted on exactly the same lines. I think you will appreciate the
fact that this is a sensitive matter in which decisions have to be
carefully considered and taken.






nisars:

Mr Minister,
Pakistan need funds. Friends of Pakistan are, no doubt, there to help us. However the best thing
would be to generate reveneus indigisouly! Copy right violation is rampant in Pakistan particularly in
films or home entertainment. There are only two companies at present dealing in legal video
business in Pakistan. They the licensees of major Hollywood studios. In a very huge market of home
entertainment in Pakistan, only these companies are paying govt Taxes at the rate of Rs 110 per
video cassette, while the pirates are filling their coffers with billions without paying any thing to the
nation. Pakistan has good copyright law but with luke worm enforcement and NO MMANDATORY
MINIMUM PUNISHMENT, it is not becoming effective.A proposal was put up to the govt last year, in
which it was recommended that the Copyright law be amended so that mandatory minimum
punishment of either 6 mongth RI or Rs 50000.00 fine is imposed on piratye upon conviction. The
proposal also contained a gauranteed Rs 5 Billion (min) per year as additional reveneus if the law
amended and enforced. Despite being in agreement, why the govt is not doing so?


Minister:

I am not aware of the statistics mentioned by you. However, the
Government has very clearly decided that the Copyright Laws ought to be
enforced. The figure of Rs. 5 billion mentioned by you is clearly very
unrealistic.






Wasiq:

Respected Minister of Law,

There is an epidemic of crime in the country that is intimately linked to the economic situation of the
people and to the low efficiency of the law enforcement agencies in Pakistan. I would like to ask you
what concrete steps are being considered by the government to improve the situation.

I have an additional question about sectarian violence in Pakistan. There have been multiple
investigations about the identity of the perpetrators, and about their organizations. Since sectarian
violence threatens to undermine the very fabric of our society, the government needs to take stern
and just measures against curbing this epidemic. What plan does the government have to address
this problem?


Minister:

The epidemic of crime to which you have referred is one of the
matters at the top of the Government's agenda. This epidemic is
devastating our society and is one the single greatest impediments to
economic progress. Sectarian violence and terrorist killings need to be
curbed ruthlessly. We have already attained a substantial measure of
success in relation to sectarian killings as is evident if you compare
last year's statistics with this year's. The incidence of sectarian
killings has fallen very sharply. Terrorist killings however, continue
to be a matter of grave concern but this problem is also being
addressed. It would take too long to spell out the exact legal strategy
which is being employed.






Cossack:

Questions for the Law Minister:

- How can you morally justify the arrest

of owners of companies in financial

difficulties ?

- Do you really believe that harrassing

and incarcerting enterpeneurs and

factory owners will resolve your economic

problems ?

- You have no problems with wealthy generals

and bureaucrats walking arounds with

hundred of millions of Dollars in bank

accounts. You do not have the nerve to

as Ejazul Haq or Zahid Ali Akbar where they

got this kind of money


Minister:

You are objecting to the arrests of loan defaulters whereas many
complaints that we received are to the effect that more such people
should be arrested. We have to draw a line on the basis of some
clear-cut legal principle. The principle which has been chosen is that
failure to make repayment because of a business loss will not be treated
as a criminal offence but a deliberate illegal disposal of property by
fraudulent means in order to avoid repayment will lead a to a criminal
trial. In case credible evidence of corruption is made available a
prosecution will be launched irrespective of the identity of the person
concerned.






Amin Saleh:

I know I might be late for a response, but incase I am not, I remembered another question.

Was the Foreign Exchange Act abolished. If not how is that BB is not charged for contravening the
laws of Pakistan.

I think the developed countries tax laws should be studied to see how they deal with individuals
with foreign assets (and why in pakistan their income - dividends, rents, and interest - is not
taxed).


Minister:

20. The Foreign Exchange Act 1947 has not been abolished. Benazir
Bhutto is being tried at the moment for the much more serious offence of
corruption but this does not exclude the possibility of a future trial
for violation of any other laws.

Q20 Part 2. In practice it is extremely difficult to tax persons in
relation to their foreign income and that is why normally, less
developed countries do not seek to do so.