Pakistan pursues $20bn offshore assets amid global tensions

Pakistan – (Web Desk) – Pakistan is looking at ways to bring back around $20 billion that its overseas citizens have parked abroad. The money is mostly sitting in the Middle East and Europe. And with rising tensions in the region, especially around Iran, many Pakistani investors are now thinking twice about keeping their wealth there.

Government officials say this is being discussed at the very top levels. The idea is simple. If investors are already thinking of moving their money somewhere safer, why not bring it back home?

A large chunk of this money was actually declared during two tax amnesty schemes back in 2018 and 2019. Nearly 83,000 declarations were filed and the government collected Rs194 billion in taxes. But most of that money never actually came to Pakistan. It stayed abroad.

Now the government wants to change that. One option being considered is to expand the Roshan Digital Account scheme. This platform was originally built for overseas Pakistanis to invest back home. The plan is to open it up further, possibly to foreign nationals and even local residents.

There are also talks about offering tax breaks in the real estate sector. One idea is a flat 10% tax on property bought by overseas Pakistanis. But officials are clear that people with undeclared or dirty money would not qualify.

These steps could come in the next federal budget or even sooner.

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Economists say that even getting a small portion of that $20 billion back could give Pakistan’s foreign reserves a real boost. But they also warn that people will only invest if they trust the system and see consistent policies over time.

The government says its focus is on keeping everything legal, transparent and in line with international rules. It is a tough ask. But the window may be opening.