Karachi: In a move aimed at boosting foreign currency inflows, the federal government of Pakistan has announced a significant increase in the monetary limit for individuals bringing in funds from abroad without having to disclose the source of income. Under the new policy, individuals will be permitted to bring in up to $100,000 from overseas without being required to provide details regarding the origin of the funds.
The budget document outlines the proposed enhancement of the monetary limit for foreign remittances remitted from outside Pakistan. Currently set at Rs. 5 million, the limit will be raised to the equivalent of $100,000 for the purpose of section 111(4) of the Income Tax Ordinance. This particular section places restrictions on authorities from questioning the nature and source of unexplained income or assets.
At present, if the remitted amount does not exceed Rs. 5 million per tax year, authorities are not permitted to inquire about the source of income. However, the proposed amendment to Section 111(4) would replace the Rs. 5 million threshold with $100,000 or approximately Rs. 29 million, signifying a substantial increase.
It is noteworthy that the government had previously reduced the limit from Rs. 10 million to the existing Rs. 5 million in order to minimize the likelihood of converting undisclosed income into legitimate funds.
The decision to raise the limit for foreign remittances without source disclosure is expected to attract greater foreign currency into the country and encourage remittances from overseas Pakistanis. The measure aims to simplify the process for individuals transferring funds to Pakistan, thereby fostering a more conducive environment for investment and economic growth.
This move by the government reflects its commitment to facilitate and incentivize the inflow of foreign currency, while simultaneously maintaining regulatory measures to prevent money laundering and illicit financial activities. The proposed amendment, once implemented, is anticipated to have a positive impact on the economy by encouraging increased remittances and enhancing transparency in cross-border transactions.