Govt weighs relaxing Rs5 million remittance cap to help overseas Pakistanis bring funds home

Pakistan government is considering relaxing the Rs5 million limit on certain overseas remittances in the fiscal year 2026-27 budget as Pakistanis abroad seek to transfer liquid assets into the country, Dawn reported, citing sources.

Under the existing arrangement, transfers exceeding Rs5 million face restrictions when the sender and recipient are not blood relatives. The threshold was previously Rs10 million before being reduced to Rs5 million.

Industry sources said conditions in parts of the Gulf region had prompted some Pakistanis to consider repatriating their funds.

While selling properties abroad remains difficult, liquid assets can be transferred to Pakistan. Sources said the current restriction on remittances above Rs5 million was creating difficulties for larger transfers.

Pakistanis have remained among the major foreign property buyers in Dubai, ranking behind Indians on several occasions. Thousands of Pakistani technology companies have also moved operations to Dubai in recent years because of business opportunities and its tax environment.

A financial expert said working-class Pakistanis were largely continuing to live in the emirate, while individuals holding larger investments and property assets were considering transferring funds because of concerns over regional conditions.

No official figures are available on Pakistanis expelled from Dubai, although industry sources said they had observed several such cases.

They said some property owners were attempting to sell their holdings and move liquid assets, but declining property prices and limited buyer interest had made sales difficult.

Sources said Pakistanis in South Africa, some parts of the United States and other countries were also facing settlement challenges and considering returning to Pakistan.

Removing or increasing the remittance threshold could facilitate these transfers and raise foreign exchange inflows into Pakistan, they added.