The 1% Assets of Pakistani lawmakers nearly doubled in 5 years

By Muhammad JuniadPublished On 06 Jan 2023

The wealth of 1,170 parliamentarians in Pakistan increased by 85% over the past five financial years, according to an investigation conducted by a private news channel.

The SIU found that all 1,170 members of parliament (including those in the provincial assemblies and both the upper and lower houses) had assets worth approximately Rs49 billion or around $314 million in 2015.

However, by 2019, their combined wealth had risen to approximately Rs91 billion or $570 million.

The SIU analyzed the income of parliamentarians, including the salaries they receive and information from other sources that they get, and scrutinized their tax records submitted to the Federal Board of Revenue, the Election Commission of Pakistan, and other official sources.

The wealth of the MPs also included assets of their family members who were dependent on them.

The independent assessment by senior officials from the Federal Board of Revenue (FBR), the political finance wing of the Election Commission of Pakistan (ECP), and other official sources.

Background interviews with officials suggest that the Intelligence and Investigation Directorate of the Federal Board of Revenue obtained details of the assets of all these public officeholders over the past nine years. Much of this wealth was either invested through “benamis” (fronts) within the country or abroad, with different layers providing legal cover in an attempt to avoid taxes and for other reasons.

The investigation by the SIU also found that 311 MPs (27%) either had investments in private firms or ran their own businesses, with a financial worth of around $130 million. Of these, 71 have declared that they have disassociated themselves from their businesses since becoming members of Parliament, but their tax records show that they are paying more taxes than their declared wealth with the Election Commission of Pakistan would suggest.

On average, an MP paid approximately $9,000 in income taxes in 2018-2019, with MPs collectively paying $11 million in taxes. However, this ratio decreased by 60% in 2019, with MPs collectively paying $6 million in taxes, a decrease of 40% compared to the previous year. On average, an MP paid approximately $7,500 in income taxes in 2019.

A review of documents relating to the wealth of 200 key MPs from various parliamentary parties between 2014 and 2019 found that around 25 MPs are declared billionaires, while 71 MPs have assets worth over $3.8 million each.

The documents also revealed that the wealth or assets of some MPs and their dependents increased by up to 300%, 200%, or 100%. Some 29 MPs declared assets worth around $39 million in the UAE, Norway, Denmark, UK, USA, Australia, and Canada.

Approximately 41 MPs declared assets worth less than $50,000.