Overseas Pakistanis have called for a waiver on withholding tax (WHT) and Federal Excise Duty (FED) for first-time plot purchases in new sectors of the federal capital. They are also pushing to make payments in Pakistani rupees instead of U.S. dollars, citing difficulties in remitting funds abroad and high banking fees.
The Capital Development Authority (CDA) had mandated that successful applicants for Sector C-14 make payments in US dollars via banking channels within 30 days of their January 15 notification. However, tax experts say payments in foreign currency are not forthcoming, and many allottees have approached the high court to seek permission for rupee transactions.
The CDA recently conducted balloting for Sector C-14, prioritizing overseas Pakistanis. According to the intimation letter issued to successful applicants, payments are only accepted in USD, transferred from abroad via banking channels, within 30 days of the letter dated January 15, 2025.
Government Task Force to review Real Estate policies
The federal government has formed a task force to recommend policy changes for the real estate and housing sector, with Prime Minister Shehbaz Sharif set to chair a meeting to discuss over 40 proposals.
Tax consultant Shahid Jami highlighted that withholding tax refunds are difficult for overseas Pakistanis, as they usually do not have taxable income in Pakistan. He also noted that other countries offer tax waivers for first-time homebuyers, a practice missing in Pakistan.
Jami urged the government to introduce practical incentives and suggested creating a dedicated Overseas Housing Authority to facilitate land acquisition and housing development for expatriates.
“Overseas Foundation of Pakistan has failed to deliver and there should be a separate Overseas Housing Authority of the pattern of DHA to acquire land and develop housing schemes for the overseas working class,” Jami observed.
PM Sharif orders restoration of green channel for overseas Pakistanis
At the Overseas Pakistanis Global Foundation Convention, Prime Minister Shehbaz Sharif directed the restoration of the Green Channel initiative to ease immigration and customs processes for expatriates.
Originally introduced by former Prime Minister Nawaz Sharif, the Green Channel initiative is designed to simplify immigration and customs procedures for overseas Pakistanis. The prime minister announced its reinstatement, highlighting the importance of active participation from the diaspora for its success.
He also announced a committee to recognize diaspora members contributing to national development.
Sharif highlighted a 30% surge in foreign remittances, boosting foreign exchange reserves. He also acknowledged the role of skilled Pakistani expatriates investing in the country’s economy. To further support overseas Pakistanis, a Punjab government initiative led by Chief Minister Maryam Nawaz has helped reclaim properties from land grabbers.
The prime minister announced that Pakistan’s top taxpayers, exporters, and investors would be designated as ‘Ambassadors At Large’ and eligible for blue passports in recognition of their contributions.