- Around Rs5.6tr represents a major pool of offshore wealth.
- Topic discussed at the highest levels in the context of global dynamics.
- The government is exploring the Roshan account framework to facilitate recovery.
Pakistan is exploring options to repatriate around $20 billion held abroad by its expatriate citizens, as escalating geopolitical tensions, particularly in the Middle East, push investors to reconsider the security of their assets held abroad. News reported, citing official sources.
According to government officials, nearly $20 billion belonging to Pakistanis is currently parked in the Middle East and Europe, much of which was declared during the 2018 and 2019 tax amnesty programs but was never repatriated to Pakistan.
This amount, equivalent to around 5.6 trillion rupees, represents a significant reservoir of offshore wealth that policymakers are now seeking to exploit.
This issue is being discussed at the highest levels in the context of changing global dynamics, including uncertainty triggered by the ongoing conflict involving Iran. The situation has reportedly led some Pakistani investors to consider moving their assets to safer jurisdictions, creating an opportunity for Pakistan to attract some of this capital to its country.
During the two amnesty programs 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 part of the declared assets remained abroad, thus limiting the impact of the measures on foreign currency inflows.
Officials said the government is currently exploring the possibility of using the Roshan Digital Account framework to facilitate the return of these funds. The program, originally designed to allow overseas Pakistanis to invest in local assets, could be expanded to attract a wider range of investors.
Under the proposed changes, authorities are considering allowing not only overseas Pakistanis, but also foreign nationals and businesses, as well as residents of Pakistan, to invest through the Roshan digital account platform. The move aims to broaden the investment base and increase flows into the formal economy.
Additionally, the government is considering providing tax incentives to overseas Pakistanis in the real estate sector to encourage investment. One proposal under consideration is to impose a 10% tax on the declared value of properties purchased by overseas Pakistanis, while ensuring that those with undeclared or illicit wealth are excluded from benefiting from the scheme.
Sources indicated that these measures could be introduced in the next 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. They caution, however, that sustained capital flows will depend on investor confidence, policy coherence and the overall business environment.
Officials said the government’s aim was to create legal and transparent investment avenues while ensuring compliance with international financial regulations, as Pakistan seeks to mobilize external assets in a challenging global economic landscape.
