The government has agreed to publicly disclose asset declarations filed by politically exposed persons, officials and their spouses, a move aimed at fulfilling a condition set by the International Monetary Fund (IMF).

Details submitted by high-level public office holders and officials will be made public to ensure transparency and the government will remove the secrecy clause from the tax law to ensure public disclosure of information.

But the government could exempt members of the judiciary and the military from mandatory disclosure of asset declarations, sources told The Express Tribune.

A legal amendment will be introduced to the income tax ordinance through the 2021 Supplementary Finance Bill to ensure the mandatory filing of asset declarations and their disclosures, the sources added. The amendment will be part of the mini-budget that the government will present to qualify for the IMF’s $ 1 billion loan.

The government is walking a tightrope to implement all conditions by the end of the month, if it wishes to obtain IMF Board approval for the tranche of the loan on January 12.

Read more: IMF Warns of ‘Economic Collapse’ Unless G20 Extends Debt Relief

The sources said the IMF has imposed a further condition that high-level public office holders and officials on the Basic Salary Scale (BPS) 17 and above, their spouses, children or benamidars, or anyone in relationship with which these individuals are the beneficial owners will file their statements of assets with the Federal Board of Revenue. These assets will then be made public.

The government has also defined the senior officials who will be required to file their statements which will be made public. An amendment is being drafted where only politically exposed persons defined by a rule, regulation, decree or instrument; or under any law currently in force would be required to file their returns, the sources said.

The government had resisted the demand for mandatory reporting on the grounds that these individuals were already required to submit details of their holdings to the Settlements Division. However, the IMF did not agree and asked Pakistan to file such declarations with the tax authorities.

However, many bureaucrats did not file their wealth returns, nor did they submit their annual tax returns, including many taxpayers.

The IMF was of the view that any senior job holder earning a salary from the budget should disclose their assets to ensure transparency.

“Disclosure of information to senior officials is proposed in compliance with the requirements of development partners, the rule of law and integrity,” notes the note sent by the president of the FBR to the adviser. financial report on current tax developments. the laws read.

However, the government found a way out where statements filed by members of the armed forces would not be made public, the sources said, adding that the exception was created by the Minister of Law, lawyer Farogh Naseem.

Lawyer Naseem was not available for comment.

The sources said the requirement of non-disclosure of asset declarations would not apply to those who are currently exempt from the applicability of the National Liability Ordinance.

A provision is likely to be inserted in the law which will state that nothing in clause

What does paragraph 5 (m) (iv) say?

A person who holds or has held any office or office in the service of Pakistan, or any service connected with the affairs of the Federation, or of a province, or of a local council constituted under federal law, or provincial council relating to the establishment of local councils, or to the management of companies, banks, financial institutions, firms, enterprises, enterprises or any other institution or organization established, controlled or administered by or under the federal government or a provincial government, other than ” a person who is a member of any of the armed forces of Pakistan, or is at present subject to any law relating to any such force, except a person who is or has been a member of such forces and holds, or has held, a position or office in a public corporation, bank, financial institution, business or other organization established, controlled or administered by or under the federal or provincial government ncial.

Prime Minister Imran Khan advocated transparency and put an end to corruption in society. But members of his cabinet are trying to create exceptions for certain classes of society, which is contrary to the Prime Minister’s vision.