Islamabad: The federal government has announced a series of tax relief measures and incentives for overseas Pakistanis in the Budget 2026-27, aimed at reducing transaction costs, encouraging investment and strengthening financial linkages with the domestic economy.
The Rs18.77 trillion federal budget, presented by Finance Minister Muhammad Aurangzeb on June 12, outlines a broader strategy focused on fiscal stability, IMF-supported reforms, economic discipline and investment-led growth.
Under the new measures, taxes on international travel have been reduced, providing relief to frequent travellers and expatriates. The government has also significantly lowered withholding tax on international transactions conducted through bank credit and debit cards from 5% to 0.5%, easing the cost of cross-border financial activity.
In the real estate sector, which remains a key investment avenue for overseas Pakistanis, advance tax and withholding tax rates on property transactions have been reduced. The withholding tax on property purchases has been cut from 2.5% to 1.25%, while the tax on property sales has been reduced from 5.5% to 2.75%. Officials say the reduction is aimed at lowering transaction costs, improving documentation and supporting activity in the property market.
The budget also abolishes the capital value tax on foreign assets, a move intended to improve the investment environment and encourage greater financial engagement.
The government said the measures are designed to facilitate overseas Pakistanis by easing financial barriers, while also promoting formal investment channels and supporting broader economic stability.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
