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Overseas Pakistanis exempted from tax on remittances

 ISLAMABAD – Federal Board of Revenue (FBR) has allowed overseas Pakistanis to send remittances without paying any tax through exchange companies.

The facility was earlier available at normal banking channels and now it has been expanded to exchange companies, money transfer companies and money services businesses.

The overseas Pakistani workers’ remittances continued to increase, reaching $2.66 billion in August 2021.

This is the sixth consecutive month when inflows recorded around $2.7 billion on average, and the fifteen consecutive month they have been above $2 billion, said State Bank of Pakistan in a statement .

In terms of growth, remittances increased by 26.8 percent year on year basis in August, which is a decade high growth rate for that month.

On a month on month basis, inflows were marginally lower than in July, reflecting the usual post‐Eid slowdown.

Nevertheless, this seasonal decline was far less this year compared to historical trends. Cumulatively, at $5.36 billion, remittances grew by 10.4% during the first two months of this year over the same period last year.

Remittance inflows during August 2021 were mainly sourced from Saudi Arabia ($694 million), United Arab Emirates ($512 million), United Kingdom ($353 million) and the United States ($279 million).

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