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 finding buyers has become increasingly difficult.

Sources also pointed to challenges faced by Pakistanis in other countries. Thousands, they said, were encountering difficulties in settling in destinations such as South Africa, certain US states and other countries where immigrants were increasingly under pressure, prompting some to consider returning to their countries of origin.

“The removal of the remittance cap would benefit Pakistanis in several countries and could also support Pakistan’s economy by boosting remittance inflows,” a source said.

Meanwhile, State Bank data showed that trade with Abu Dhabi and Dubai increased despite regional tensions. During July-April FY26, imports from Abu Dhabi rose to $1.193 billion from $862 million in the corresponding period of the previous fiscal year. Imports from Dubai increased to $5.592bn from $5.254bn over the same period.

In March, when the conflict in the Gulf region was at its peak, imports from Abu Dhabi fell to $50.5m but recovered to $121m in April. Imports from Dubai similarly declined to $437m in March before rebounding to $862m in April.

Exports to Dubai edged down to $1.554bn during the first 10 months of FY26 from $1.578bn a year earlier. Exports to Abu Dhabi, however, increased to $179m from $78m during the same period.

Published in Dawn, June 9th, 2026