Govt mulls easing curbs to facilitate asset transfer

KARACHI: The government is considering relaxing the remittance cap in the upcoming budget as overseas Pakistanis in several countries face difficulties in protecting their investments and liquid assets abroad, sources in the financial industry said. At present, remittances exceeding Rs5 million are subject to restrictions if the sender and recipient are not blood relatives. The limit was previously set at Rs10m before being reduced to Rs5m. According to sources, worsening conditions in parts of the Gulf region have prompted many Pakistanis to consider repatriating their funds. While the sale of overseas properties remains difficult, liquid assets can be remitted to Pakistan. However, the existing cap on transfers above Rs5m is viewed as a significant obstacle. Pakistanis have consistently ranked among the largest foreign purchasers of property in Dubai, second only to Indians on several occasions. At the same time, thousands of Pakistani technology firms have relocated to Dubai in recent years, attracted by business opportunities and a more favourable tax regime. Overseas Pakistanis struggle as remittance cap hinders repatriation of funds “The war-like situation has entered its fourth month and there is still no clarity about Dubai’s future, even though it remained a prime target during the conflict that began on Feb 28,” said a financial expert with close links to the emirate. He said most working-class Pakistanis continued to reside in Dubai, but wealthier individuals with substantial investments and property holdings were increasingly seeking to move their funds elsewhere amid concerns over the security of their assets. Although no official data is available on Pakistanis expelled from Dubai, sources said they had witnessed several such cases. They added that many affluent Pakistanis were attempting to sell their properties and transfer their liquid assets out of the emirate. Property prices in Dubai have fallen sharply, according to market observers, while findi