ISLAMABAD: The Federal Board of Revenue (FBR) has compiled a list of more than 70 real estate agents suspected of illegally remitting US dollars to the United Arab Emirates (UAE) through hundi/hawala channels for real estate investments, a practice that has contributed to recent pressure on the exchange rate.
Senior officials confirmed that large sums of cash were converted into foreign currency—primarily US dollars—from Pakistan’s open market and transferred to the UAE via informal money transfer networks. The total amount is estimated to be in the millions of dollars, aligning with the recent fluctuations in the exchange rate.
“The FBR has raised the alarm and compiled a list of real estate agents involved in these transactions,” senior officials said. “This is just the tip of a massive scandal that requires further investigation by the FIA and other relevant authorities.”
Real Estate Agents Under Scrutiny
The agents in question collected cash from clients, exchanged it for foreign currency in the open market, and transferred it to the UAE to invest in real estate. The FBR and other investigative bodies are now working to track these transactions and their impact on Pakistan’s financial system.
Meanwhile, property tycoons have warned the government that if tax rates increase and the no-questions-asked limit is raised from Rs10 million to Rs25-50 million under the proposed Tax Laws Amendment Bill 2024, investors may shift their capital to the UAE. The bill is currently under review by the National Assembly Standing Committee on Finance and Revenues.
To address tax compliance, the FBR has been given a two-month deadline to develop an app allowing taxpayers to voluntarily amend declared asset values.
According to the compiled list, authorities suspect certain real estate agents have been actively transferring foreign exchange to Dubai’s property market, prompting heightened scrutiny and potential legal action.
