The government is considering easing restrictions on large remittances in the upcoming budget as growing numbers of overseas Pakistanis seek to move their funds back to the country amid uncertainty in several foreign markets.
Under the current rules, remittances exceeding Rs. 5 million face restrictions when the sender and recipient are not blood relatives. The threshold was previously set at Rs. 10 million before being reduced to Rs. 5 million. Market analysts believe the existing limit has become a major hurdle for Pakistanis attempting to repatriate their liquid assets.
The issue has gained importance as concerns mount among Pakistanis with investments in parts of the Gulf region. While selling overseas properties remains challenging, liquid assets can be transferred to Pakistan. However, sources said the remittance cap is preventing many individuals from moving larger sums despite growing interest in relocating their funds.
Pakistanis have long remained among the largest foreign investors in Dubai’s property market and have frequently ranked second only to Indians in property purchases. In recent years, thousands of Pakistani technology firms have also shifted operations to Dubai, attracted by business opportunities and a favorable tax environment.
A financial expert with close links to Dubai told Dawn that the conflict that began on February 28 has entered its fourth month, creating uncertainty about the emirate’s future despite its continued importance as a regional business hub. He said many affluent Pakistanis with significant investments and property holdings were increasingly looking to move their wealth elsewhere due to concerns about asset security, even as most working-class Pakistanis continued to live and work in Dubai.
The report stated that the market source had observed several cases involving Pakistanis leaving Dubai and noted that many wealthy investors were attempting to sell properties and transfer available funds out of the emirate. Market observers reported a sharp decline in property prices, while demand from potential buyers has weakened considerably.
Similar challenges are also being faced by Pakistanis living in other countries. Sources said thousands of expatriates in destinations including South Africa and certain parts of the United States were encountering increasing pressures, prompting some to consider returning to their home countries. They argued that removing the remittance cap could not only assist overseas Pakistanis but also strengthen Pakistan’s economy through higher remittance inflows.
Meanwhile, State Bank data showed that trade with Abu Dhabi and Dubai continued to grow despite regional tensions. During July to April of FY26, imports from Abu Dhabi increased to $1.193 billion from $862 million in the corresponding period of the previous fiscal year, while imports from Dubai rose to $5.592 billion from $5.254 billion.
Trade flows also recovered after a slowdown during the height of the Gulf conflict. Imports from Abu Dhabi fell to $50.5 million in March before rising to $121 million in April, while imports from Dubai declined to $437 million in March and rebounded to $862 million the following month. During the first 10 months of FY26, exports to Dubai slipped to $1.554 billion from $1.578 billion a year earlier, whereas exports to Abu Dhabi increased to $179 million from $78 million.