The government is considering easing restrictions on large remittances in the upcoming federal budget as a growing number of overseas Pakistanis look to transfer funds back home amid uncertainty in several foreign markets, officials and market sources said.
Under existing regulations, remittances exceeding Rs5 million are subject to restrictions when the sender and recipient are not blood relatives.
The ceiling was previously set at Rs10 million but was reduced in recent years. Financial analysts believe the current limit has become a major obstacle for Pakistanis seeking to repatriate sizeable liquid assets.
The issue has gained urgency as concerns increase among Pakistanis with investments in parts of the Gulf region. While disposing of overseas property remains difficult, liquid assets can be transferred to Pakistan.
However, sources said the current remittance cap is discouraging many individuals from moving larger sums despite a clear rise in interest.
Pakistanis have historically ranked among the largest foreign investors in Dubai’s real estate sector, often second only to Indians in property purchases.
In recent years, thousands of Pakistani technology and services firms have also shifted operations to Dubai, drawn by business opportunities and a favourable tax environment.
A financial expert with close links to the Dubai market told Dawn that a regional conflict which began on February 28 has now entered its fourth month, creating uncertainty despite Dubai’s continued role as a regional commercial hub.
According to the expert, a segment of affluent Pakistanis with significant investments has begun reassessing asset security and exploring options to move wealth elsewhere.
Market sources reported several cases of Pakistani investors leaving Dubai and attempting to sell properties, with available funds being transferred abroad.
Observers noted a sharp fall in property prices and weakening buyer demand during recent months. However, most working-class Pakistanis continue to live and work in the emirate.
Similar pressures are also being felt by Pakistanis living in other countries. Sources said expatriates in destinations such as South Africa and certain parts of the United States are facing growing economic and regulatory challenges, prompting some to consider returning to Pakistan.
They argued that removing or relaxing the remittance cap could provide relief to overseas Pakistanis while boosting foreign exchange inflows.
Meanwhile, official figures from the State Bank of Pakistan show that trade with Abu Dhabi and Dubai continued to expand despite regional tensions.
During July to April of FY26, imports from Abu Dhabi rose to $1.193 billion from $862 million in the same period last year, while imports from Dubai increased to $5.592 billion from $5.254 billion.
Trade flows also showed signs of recovery after slowing during the peak of regional instability.
Imports from Abu Dhabi fell to $50.5 million in March before rebounding to $121 million in April. Imports from Dubai dropped to $437 million in March but recovered to $862 million the following month.
During the first ten months of FY26, exports to Dubai declined slightly to $1.554 billion from $1.578 billion a year earlier, while exports to Abu Dhabi rose sharply to $179 million from $78 million.
Officials said proposals to revise remittance limits are under review as part of broader budget discussions, with a decision expected ahead of the budget presentation later this month.
