The Federal Board of Revenue (FBR) has identified over 70 real estate agents allegedly involved in transferring substantial amounts of U.S. dollars to the United Arab Emirates (UAE) through informal channels like hundi and hawala. These transactions were reportedly conducted to invest in the UAE’s property market, contributing to recent pressures on Pakistan’s exchange rate.

Key Points:

  • Method of Transfer: Agents collected cash from clients, converted it into foreign currency via the open market, and remitted the funds to the UAE using hundi/hawala methods.
  • Impact on Exchange Rate: These activities have exerted pressure on Pakistan’s exchange rate in recent weeks.
  • Further Investigations: The FBR has sought assistance from the Federal Investigation Agency (FIA) and other relevant authorities to conduct a comprehensive probe into these practices.
  • Real Estate Sector’s Response: Industry representatives have expressed concerns that high domestic tax rates may drive investors to seek opportunities abroad. They advocate for reduced taxes and increased thresholds for undisclosed income to encourage local investments.