The Federal Board of Revenue (FBR) has compiled a list of over 70 real estate agents suspected of channeling US dollars to the United Arab Emirates (UAE) through hundi/hawala for property investments, exacerbating pressure on the exchange rate in recent weeks, The News has learned. Senior officials, speaking on background, confirmed that substantial amounts of cash were converted into foreign currency—particularly US dollars—via the open market and sent to the UAE using informal money transfer networks. These transactions amount to millions of dollars and have contributed to fluctuations in the exchange rate over the past few weeks. “The FBR has raised alarm over the issue and compiled a list of real estate agents engaged in these activities,” top officials told The News on Tuesday. Describing it as just the “tip of a mega scandal,” officials emphasized the need for further investigation by the Federal Investigation Agency (FIA) and other relevant authorities. The listed real estate agents allegedly collected cash from clients, converted it into foreign exchange, and then transferred it to UAE markets for property investments, sources revealed. Concerns Over Investment Shifts Property tycoons have warned the government that real estate investments may shift further to the UAE if proposed amendments in the Tax Laws Amendment Bill 2024—raising the “no-questions-asked” limit from Rs10 million to Rs25-50 million—are implemented. The bill is currently under review by the National Assembly Standing Committee on Finance and Revenues. Meanwhile, the FBR has been given a two-month deadline to develop an application allowing voluntary modifications to filed tax returns, enabling adjustments to declared asset values. Real Estate Sector’s Response The FBR’s findings indicate that several real estate agents have been remitting foreign exchange to Dubai. However, industry representatives argue that such transactions have been a long-standing practice, facilitated by exchange companies due to the absence of strict scrutiny on the source of funds. They estimate that around two million dirhams are routinely transferred for property purchases in Dubai, a trend persisting for years. Industry leaders have urged the government to introduce incentives to curb foreign exchange transfers through hundi/hawala, stressing the need for reduced property taxes to discourage capital flight.