Pakistani government authorities have begun scrutinizing those Pakistani residents who have a long term UAE visas tied to significant real estate investments and yet failed to declare these offshore assets to FBR and Government authorities.
The Federal Investigation Agency (FIA), along with FBR authorities, are actively issuing notice to individuals who acquired the coveted 10-year golden visa by investing at least AED 2 million in property in UAE regarding property investment or purchase. These visas include critical identifiers such as Pakistani passport numbers, names, and self-sponsored investor status, making it easier for authorities to track ownership.
Undisclosed Wealth Abroad Under Scrutiny
Investigators have discovered that many Pakistan-based individuals have not reported these foreign holdings in their annual wealth statements—a legal requirement under Pakistan's tax laws. Furthermore, authorities are probing whether any income generated through these properties, such as rent or resale profits, was omitted from tax filings.
There’s also growing concern over unpaid Capital Value Tax (CVT) on these foreign assets, which could amount to large sums in lost revenue for the national exchequer.
Data Gaps & Loopholes in International Reporting
Although Pakistan and the UAE maintain a bilateral tax agreement, officials say financial data has not been forthcoming from the Gulf state. In many cases, Pakistani investors have opened bank accounts using UAE residency details rather than their home passports, sidestepping detection through global data-sharing protocols such as the Automatic Exchange of Information (AEOI).
To further complicate the matter, some individuals reportedly relied on informal or undocumented money transfer methods such as hawala to finance their property purchases, avoiding banking channels and thereby staying below regulatory radar.
Government Moves to Clamp Down
With mounting pressure from the government to plug revenue leaks and tackle financial misconduct, the FIA’s efforts are part of a broader strategy to hold wealthy Pakistanis accountable for unreported offshore investments. The crackdown follows recent directives from the Prime Minister to take action against hoarders and speculators in domestic markets.
As investigations continue, tax authorities are expected to issue notices and initiate proceedings against violators, marking a significant shift toward greater enforcement of foreign asset disclosure laws.
