Pakistanis hold $19bn in offshore wealth, with half invested in Dubai's real estate.

A recent Global Tax Evasion report, produced by the EU Observatory, highlights that Pakistanis own approximately $19 billion in offshore wealth, with over half of it invested in Dubai's real estate. The report also calls for a minimum 2% income tax on the world's billionaires to increase their current income tax contributions.

According to the report, Pakistanis hold approximately $19.2 billion in offshore assets, of which $8 billion is in cash, shares, bonds, and investments, while an additional $11.2 billion is invested in real estate. This figure accounts for 3.6% of Pakistan's GDP in 2022.

The report notes that Asian tax havens hold the majority of these assets, with $4 billion, followed by $2 billion in European tax havens, $1 billion in Switzerland, and $910 million in American tax havens. This represents a decrease of $1.1 billion in offshore wealth owned by Pakistanis compared to the previous year, primarily due to reductions in assets held in Asian tax havens.

The report suggests a shift in preferences over time, as Pakistanis have historically held substantial wealth in Switzerland. In 2007, Pakistanis held as much as $19 billion in Swiss assets, which, by 2016, had decreased to just $2 billion. This shift in wealth destinations appears to coincide with significant political changes in Pakistan following the Panama leaks.

One notable highlight is the ownership of $11.2 billion in real estate in three global cities-Dubai, London, and Singapore. The majority of this real estate investment, approximately $10 billion, is located exclusively in Dubai, with significantly smaller investments in London ($740 million) and Singapore ($120 million). Paris holds just $18 million in assets owned by Pakistanis.

The report underscores the use of offshore real estate as property owned by individuals residing in different countries or held through complex offshore structures that obscure the owner's identity.

The EU Observatory conducted the report with the collaboration of over 100 researchers worldwide and tax administrations. The report's research indicates that global billionaires have low personal effective tax rates...

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