Pakistan seeks repatriation of $20bn held in offshore assets amid global tensions

• Around Rs5.6tr represents major pool of offshore wealth.
• Matter discussed at highest levels in context of global dynamics.
• Govt exploring Roshan Account framework to facilitate recovery.

Pakistan is weighing possible avenues to repatriate around $20 billion held overseas by its expatriate citizens, as escalating 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 Schemes but was never repatriated to Pakistan.

The amount, equivalent to around Rs5.6 trillion, represents a significant pool of offshore wealth that policymakers are now looking to tap.

This issue is being discussed at the highest levels in the context of changing global dynamics, including uncertainty triggered by the ongoing conflict involving Iran. The situation has reportedly led some Pakistani investors to consider shifting their assets to safer jurisdictions, creating an opportunity for Pakistan to attract part of that capital back home.

During the two amnesty schemes introduced in 2018 and 2019, a total of 82,889 declarations were filed, generating Rs194 billion in tax revenue for the government. However, a large portion of the declared assets remained abroad, limiting the schemes’ impact 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 enable overseas Pakistanis to invest in local assets, may be expanded to attract a broader range of investors.

Under the proposed changes, authorities are considering allowing not only overseas Pakistanis but also foreign nationals and companies, as well as residents within Pakistan, to invest through the Roshan Digital Account platform. The move is aimed at widening the investment base and increasing inflows into the formal economy.

In addition, the government is examining tax incentives for overseas Pakistanis in the real estate sector to encourage investment. One proposal under consideration is to impose a 10% tax on the declared value of properties purchased by overseas Pakistanis, while ensuring that individuals with undeclared or illicit wealth are excluded from availing the scheme.

Sources indicated that these measures could be introduced in the upcoming 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 stabilise 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 mobilise external assets in a challenging global economic landscape.