ISLAMABAD – The Federal Board of Revenue (FBR) uncovered alleged Money Laundering by at least 70 real estate agents who are involved in dollar transfers to United Arab Emirates.
A report shared by a local publication said over seventy real estate agents are involved in Hundi-Hawala transfers for property investments, directly affecting Pakistan’s exchange rate.
These identified real estate agents have been converting piles of cash, particularly in dollars, from open market and injecting them into the property sector of the Gulf nation. The massive scale of transfers not only fluctuated Pakistan’s currency exchange rate, defying laws.
The News quoting a source said a detailed list of real estate agents engaged in these activities have been formed and further investigations are needed by Federal Investigators.
Real estate developers also warned that the government’s proposed changes to tax laws, particularly the increase of the no-questions-asked limit for foreign currency transactions from Rs10 million to between Rs25-50 million, could lead to a further exodus of investments to Emirates.
The proposed Tax Laws Amendment Bill 2024, currently under review by the National Assembly Standing Committee on Finance and Revenues raised alarm among several property giants.
As per the existing information, transfer of foreign exchange to UAE is routine practice in real estate sector, and scale and frequency of these activities demand detailed probe. FBR and other agencies are now working to investigate the full extent of the operations, which may have implications not only for the real estate market but for Pakistan’s broader economic health.
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