- About 5.6 tr. Rs represents a large pool of offshore wealth.
- Matter discussed at the highest level in the context of global dynamics.
- The government is exploring the Roshan office framework to facilitate recovery.
Pakistan is weighing possible avenues to repatriate around $20 billion held by its expatriates abroad as escalating geopolitical tensions, particularly in the Middle East, push investors to reconsider the safety of their foreign-owned assets, The news reported with reference to official sources.
According to government officials, nearly $20 billion belonging to Pakistanis is currently parked in the Middle East and Europe, a large portion of which was declared under the tax amnesty schemes in 2018 and 2019 but never repatriated to Pakistan.
The amount, equivalent to about Rs 5.6 trillion, represents a significant pool of offshore wealth that politicians are now seeking to tap.
This issue is being discussed at the highest level in the context of changing global dynamics, including uncertainty triggered by the ongoing conflict involving Iran. The situation has reportedly prompted some Pakistani investors to consider moving their assets to safer jurisdictions, creating an opportunity for Pakistan to attract some of this capital home.
Under the two amnesty schemes introduced in 2018 and 2019, a total of 82,889 returns were filed, generating Rs194 billion in tax revenue for the government. However, a large portion of the declared assets remained abroad, limiting the impact of the schemes on foreign exchange inflows.
Officials said the government is now exploring the possibility of using the Roshan Digital Account framework to facilitate repayment of these funds. The scheme, originally designed to allow overseas Pakistanis to invest in local assets, may be expanded to attract a wider range of investors.
Under the proposed changes, the authorities are considering allowing not only overseas Pakistanis, but also foreign nationals and companies as well as residents of Pakistan to invest through the Roshan Digital Account platform. The move is aimed at expanding the investment base and increasing access to the formal economy.
In addition, the government is exploring tax incentives for overseas Pakistanis in the real estate sector to encourage investment. One proposal being considered is to impose a 10% tax on the declared value of properties purchased by overseas Pakistanis, while ensuring that people with black or illegal wealth are excluded from availing the scheme.
Sources indicated that these measures could be introduced in the upcoming federal budget or even earlier, depending on political approvals.
Economic analysts say attracting even a fraction of the $20 billion could provide much-needed support to Pakistan’s foreign exchange reserves and help stabilize the economy. However, they caution that sustained approaches will depend on investor confidence, policy consistency and the overall business environment.
Officials maintained that the government’s focus is on creating legal and transparent investment opportunities while ensuring compliance with international financial regulations as Pakistan seeks to mobilize external assets in a challenging global economic landscape.
