Govt plans to bring back $20 billion parked abroad by Pakistanis

Pakistan government is examining options to attract up to $20 billion held abroad by Pakistani expatriates, as investors reassess asset safety amid ongoing geopolitical tensions.

According to a report by The News, officials said a large portion of these funds, mainly located in the Middle East and Europe, was declared under the 2018 and 2019 tax amnesty schemes but was not repatriated to Pakistan. The amount, estimated at around Rs5.6 trillion, is being discussed at the policy level as part of efforts to increase foreign exchange inflows.

Authorities are considering using the Roshan Digital Account (RDA) framework to facilitate the return of these funds. The platform may be expanded to allow participation not only from overseas Pakistanis but also foreign nationals, companies and domestic investors.

Officials said the proposal aims to widen the investment base and channel funds into the formal economy through regulated mechanisms.

The government is also reviewing potential tax incentives in the real estate sector to attract overseas investment. One proposal under consideration includes a 10 per cent tax on declared property values purchased by overseas Pakistanis, with safeguards to exclude undeclared or illicit funds.

The funds were originally disclosed through 82,889 declarations filed under the amnesty schemes, which generated Rs194 billion in tax revenue but did not result in significant inflows into the country.

Officials said policy measures could be introduced in the upcoming federal budget or earlier, subject to approvals.

Analysts said that attracting even part of the offshore funds could support foreign exchange reserves, but added that sustained inflows would depend on policy consistency and investor confidence.

The government said it aims to create transparent and compliant channels for investment while aligning with international financial regulations.