- Around Rs 5.6 trillion represents a significant reserve of offshore wealth.
- Issue discussed at the highest level in the context of global dynamics.
- The government is exploring the Roshan Account framework to facilitate recovery.
Pakistan is weighing possible avenues to repatriate around $20 billion held by its expatriate citizens abroad, as rising geopolitical tensions, especially in the Middle East, push investors to reconsider the security of their foreign-held assets. The 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 Plans but was never repatriated to Pakistan.
The amount, equivalent to around Rp5.6 trillion, represents a significant reserve of offshore wealth that authorities are now seeking to tap into.
This issue is being debated at the highest level in the context of changing global dynamics, including the uncertainty caused 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 that capital home.
During the two amnesty programs introduced in 2018 and 2019, a total of 82,889 returns were filed, generating Rs 194 billion in tax revenue for the government. However, a large portion of the declared assets remained abroad, limiting the impact of the plans on foreign exchange inflows.
Officials said the government is now exploring the possibility of using the Roshan Digital Account framework to facilitate the return of these funds. The scheme, originally designed to allow overseas Pakistanis to invest in local assets, can be expanded to attract a wider range of investors.
Under the proposed changes, authorities are considering allowing not only overseas Pakistanis but also foreign citizens and companies, as well as residents within Pakistan, to invest through the Roshan Digital Account platform. The measure aims to broaden the investment base and increase inflows into the formal economy.
Additionally, the government is examining tax incentives for foreign 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 Pakistanis abroad, while ensuring that people with undeclared or illicit wealth are excluded from the regime.
Sources indicated that these measures could be introduced in the next federal budget or even earlier, depending on policy 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 inflows would depend on investor confidence, policy consistency and the overall business environment.
Officials maintained that the government’s focus is on creating legal and transparent avenues for investment while ensuring compliance with international financial regulations, as Pakistan seeks to mobilize external assets in a challenging global economic landscape.
