Bringing back wealth

INTERIOR Minister Mohsin Naqvi’s call to businessmen earlier this week to repatriate 20-30pc of their offshore wealth underscores the government’s anxiety over Pakistan’s external sector challenge. His suggestion that as much as $10bn could flow back into the country before the upcoming budget, if traders act decisively, further reflects official desperation. With exports stagnating, the likelihood of reduced remittances if the Gulf crisis lingers, and both private and official inflows plunging, the authorities are scrambling for stopgap solutions. In this context, urging businessmen to help plug the gap by bringing back their offshore wealth appears to be an attempt to quickly mobilise dollars. But capital does not respond to appeals or pressure in the way the minister might be hoping. It moves based on expectations of safety, predictability and returns. Wealth, particularly when already parked abroad, reflects decisions taken over years in response to perceived or real risks at home, including volatile policies, an extortionist tax regime, currency instability and governance concerns. These are not conditions that can be reversed through a three-month window or an appeal.

The very fact that the call is being made by the interior minister, who controls enforcement agencies often associated with heavy-handed tactics, risks proving counterproductive, potentially deterring rather than encouraging voluntary inflows. Even the ‘carrot’ — business passports — misses the broader point. Administrative incentives or privileges are no substitute for a genuinely investment-friendly environment. While ease of travel carries appeal, it is unlikely to drive meaningful repatriation. What investors ultimately seek is far more fundamental: policy stability, credible contract enforcement, and a fair, predictable tax and regulatory regime — conditions that administrative perks cannot replace. The underlying reality is that capital leaves environments where it does not feel secure over the long term. And it does not return unless that concern is addressed. Attempting to cajole or implicitly pressure businesses into repatriating their money from offshore safe havens only reinforces the uncertainty that triggered the outflows in the first place. If the government is serious about bringing back offshore capital, it must shift from appeals to reforms to usher in a conducive business environment. That requires policy consistency across political cycles, a pro-growth tax regime, legal protections for investment and a business-friendly bureaucracy.

Published in Dawn, April 19th, 2026

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