Afghan refugees risk billions in losses

Express Tribune

5 days ago

Afghan refugees arrive from Pakistan at the border in Spin Boldak district of Kandahar province on December 3, 2023. PHOTO: AFP
Listen to article
As the status of over one million Afghan citizens holding Proof of Registration (PoR) cards hangs in the balance after expiry of their stay limit last month, the refugees are worried about economic losses due to possible disposal of their assets in haste that they built in the past five decades.
Although there is slow implementation of the Illegal Foreigners Repatriation Plan, the refugees are concerned that they may be forced to sell their valuable assets at throwaway prices in case the validity of their cards is not extended further.
Due to security and economic considerations, the Pakistani authorities decided to repatriate all illegal foreign immigrants in November 2023. Pakistan has so far repatriated approximately 1.3 million Afghans and still there are about 1.6 million staying back, according to the data compiled by a United Nations entity.
These include over one million refugees who have PoR cards but these documents expired on June 30, 2025. The government is considering two options, either giving a temporary extension or offering these PoR card holders a long-term visa, according to officials dealing with the subject.
So far, no decision has been taken to extend the PoR cards but the government is working on a new visa policy for foreigners, said Chaudhry Talal, the Minister of State for Interior, while talking to The Express Tribune.
The matter to give an extension had also been discussed in the federal cabinet but no decision was taken.
Talal said that the new visa policy would offer incentives for foreign investment in Pakistan and the Afghan citizens can also take advantage of that.
Beyond Boundaries, an initiative of the Centre for Research and Security Studies, has been working for the resolution of the Afghan refugees' issue. It is advocating a permanent solution to the problem so that the refugees who came to Pakistan after 1979 are not forced to sell their assets at discounted prices and these people can also positively contribute to the local economy.
Only Dostokhail tribe people are holding approximately Rs52 billion in assets in Peshawar in the shape of movable and immovable properties in others' names, said Ahmad Shah, a trader from the tribe. Affluent Afghans should not be deported, as it is mutually beneficial for them as well as for Pakistan, said Ahmad Shah.
Shah claimed that they are not allowed to own assets and cannot open bank accounts. But the central bank authorities said that thousands of PoR card holders were having bank accounts.
Shah said that his tribe also contributed over Rs14 billion or $51 million in foreign remittances last year. These remittances are sent by the tribe members working in Europe, Canada, and the United States, he added.
"Our family does not have any criminal record, and we are traders doing business in black tea, tyres, and batteries," said Ahmad Shah.
"My children are born in Pakistan and they do not want to go back to Afghanistan," said Shah, who is worried about selling off his benami assets at throwaway prices if the government finally decides to repatriate all Afghan refugees.
"We are traders because we do not have permanent residence status and cannot legally invest in Pakistan," said Mohammad Bakhtiar, another member from the Dostokhail tribe.
However, for Pakistani authorities, $51 million in remittances is not much compared to the cost that they believe the Pakistani economy was paying due to the presence of Afghan refugees. The cost is in the shape of the role of Afghan refugees in illegal trade of currency and smuggling of goods under the Afghan Transit Trade Agreement.
In the last fiscal year, Pakistan received a record $38.2 billion in foreign remittances that helped post a current account surplus of $2.1 billion. But there are questions on the sustainability of these remittances due to the federal government's decision to freeze subsidies for remittances. It has also reduced the benefits on foreign remittances, but a decision remains pending on who would foot the bill.
Building foreign exchange reserves is the responsibility of the central bank, thus, it should be funding the scheme, Finance Secretary Imdadullah Bosal told the National Assembly Standing Committee on Finance this week.
Bosal said that the federal government did not have funds to continue the Pakistan Remittances Initiative scheme. The secretary said that the finance ministry was working with the central bank to find a solution, as no money is kept in the new budget.
"As against Rs89 billion budgeted allocation in the last fiscal year, the finance ministry received nearly Rs200 billion claims from the central bank ... that is quite a substantial chunk," said Bosal.
He said one of the options was for the central bank to deduct the cost upfront from the profits it transfers to the federal government. However, the challenge is that it would still be treated as part of the primary expenses.
After multiple rounds of background discussions, Beyond Boundaries has recommended streamlining visa processes for traders of Afghan origin and granting them residency, enabling them to invest in Pakistan.