Link Between Pakistani Startups & Offshore Companies
A financial expert said that many offshore firms are formed to take benefit of low taxation and they are not necessarily illegal
The Pandora papers have certainly opened a new pandora’s box about offshore companies, prompting a nuisance around the world but having a link with Pakistani startups.
Some 700 Pakistanis have also been nominated in the Pandora leaks and there are demands for holding those individuals under the scanner.
However, an eminent financial expert, Asad Ali Shah, took to his Twitter to clear the air regarding the offshore firms.
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Asad Shah, who is the son of Sindh ex-chief minister Qaim Ali Shah, clarified not all offshore companies are illegal and bad.
The financial expert said that many of them are formed to take benefit of low tax regimes.
2) there hundreds of startups in Pakistan, many getting funding through off shore vehicles, due to Pakistan’s high tax and unfriendly regulatory system. Current story in media that all off shore companies are for stolen money is plainly wrong & counterproductive
— Asad Ali Shah (@Asad_Ashah) October 4, 2021
Asad Ali Shah further clarified that there are hundreds of Pakistani startups that are getting funding through offshore firms as well.
This is due to the local high tax regime and unfriendly regulatory system.
The financial expert warned that prevailing story in media that all offshore companies are for stolen money is plainly wrong & counterproductive
