Pakistan remittance limit budget proposal targets the Rs. 5 million cap as Gulf uncertainty pushes affluent expatriates to repatriate liquid assets

Pakistan’s budget may remove a significant barrier for overseas Pakistanis trying to bring money home. The government is considering raising the remittance limit as growing numbers of expatriates seek to repatriate funds amid uncertainty in several foreign markets. The Pakistan remittance limit budget proposal targets the current Rs. 5 million restriction on remittances between non-blood relatives. Moreover, market analysts say this cap has become a major hurdle for Pakistanis attempting to move larger sums back to the country.

The threshold was previously set at Rs. 10 million before being cut to Rs. 5 million. Furthermore, the reduction created problems for wealthy expatriates who hold liquid assets abroad and want to shift them to Pakistan. The Gulf region sits at the centre of the current concern. A financial expert with close links to Dubai told Dawn that the conflict that began on February 28 has entered its fourth month. Many affluent Pakistanis with significant Dubai investments are increasingly looking to move their wealth elsewhere due to concerns about asset security.

Pakistanis have long ranked among Dubai’s largest foreign property investors, frequently second only to Indians in annual purchases. Furthermore, thousands of Pakistani tech firms relocated to Dubai in recent years, attracted by business opportunities and favourable tax conditions. However, selling overseas property remains difficult. Liquid assets can move, but the remittance cap is blocking that transfer for many individuals. Therefore, raising the limit would unlock funds that are ready to move but legally constrained.

Similar pressures affect Pakistanis in South Africa and parts of the United States. Sources said thousands of expatriates in those destinations face increasing uncertainty, with some considering returning home. Furthermore, removing the cap could boost Pakistan’s overall remittance inflows significantly.

State Bank data shows trade with Abu Dhabi and Dubai continued growing despite regional tensions. Imports from Dubai rose to $5.592 billion during July to April of FY26, up from $5.254 billion the previous year. Finally, if the budget raises the remittance limit, Pakistan could capture a meaningful share of the liquid wealth its diaspora is now actively looking to move.