They live in Dubai, vacation in London and rule in Islamabad, a class that has mastered the art of being Pakistani only when it pays. These are the men and women who hold foreign passports or non-resident status yet enjoy every privilege of Pakistani citizenship, political power, state protection, and untaxed profit. They earn here, influence here, and legislate Kim here, but when the system shakes, they simply board a flight out.
There are roughly nine million overseas Pakistanis whose remittances of USD 30-33 billion each year keep the economy afloat. They live abroad out of necessity, not choice, sending home every dirham and dollar they can. They have no vote, no representation, and little voice in policymaking. Then there is another kind of “overseas Pakistani,” the elite non-resident. They may live most of the year in Lahore, own companies across the country, and sit on influential boards, yet on paper, they are “non-residents.” Why? Because under Pakistani tax law, anyone who spends fewer than 183 days in the country can avoid tax on global income. This loophole was designed for genuine expatriates but has been turned into a shield for those who want the best of both worlds, Pakistani wealth without Pakistani responsibility.
The privilege of Pakistan cannot belong to those who have insured themselves against its fall.
Pakistan’s top one per cent controls over sixteen per cent of the national income, yet contributes far less than its share in taxes. Only about four million citizens, roughly 1.5 per cent of the population, file income tax returns at all. Even among those, many declare token earnings while their wealth grows through under-invoicing, offshore accounts, and property registered under companies in Dubai or the British Virgin Islands.
Policy in Pakistan is often crafted by people who will never live with its consequences. They vote for higher indirect taxes that inflate prices for the poor while their own income remains abroad. They devalue the rupee but keep their savings in pounds. They preach sacrifice on television and then fly home not to Faisalabad, but to Finchley. The irony is cruel, the labourer in Sharjah remits every rupee home yet has no privilege, the tycoon in London remits nothing but enjoys every economic and political advantage. Both are technically “overseas Pakistanis,” but morally, they could not be more different.
Other countries draw a much firmer line. India does not allow dual nationality; taking another citizenship means surrendering your Indian one. The United States and the United Kingdom tax their citizens on global income regardless of residence. Even Indonesia and the Philippines restrict dual nationals from owning or managing strategic national assets. Pakistan, in contrast, permits its politically connected elite to own local banks, media houses, energy companies and other businesses while holding foreign citizenship, a clear conflict of interest that would be unacceptable elsewhere.
It’s about time Pakistan should link non-resident status to income source, not merely physical presence and impose higher tax rates on dual nationals earning from Pakistani assets. Full disclosure of foreign passports, residencies, and offshore holdings should be mandatory for all. Foreign nationals should not control critical sectors, and most importantly, genuine overseas Pakistanis, the remitters, should be rewarded with representation and investment protection.
Loyalty to a country is not proven by singing its anthem but by sharing its fate. The privilege of Pakistan cannot belong to those who have insured themselves against its fall. Until belonging once again means accountability, Pakistan will remain hostage to those who live in it only halfway, long enough to profit, but never long enough to pay.
The writer is a former State Minister for Education and Professional Training, former Member of the National Assembly of Pakistan, Chairperson of the Prime Minister’s Youth Programme and Director at Media Times.