Islamabad, June 26, 2025 –Through the amended Finance Bill, 2025, a jaw-dropping provision has been recommended that would permit an ineligible individual to withdraw up to Rs100 million in cash annually from the banking system.
Initially, the Finance Bill 2025 sought to impose strict financial transaction limitations on ineligible persons—those who do not file income tax returns or lack sufficient declared resources. However, following intense lobbying and a detailed review by the Standing Committee on Finance of the National Assembly, significant relaxations have been proposed. The surprising recommendation still awaits final approval by the National Assembly, but its inclusion has sparked widespread debate and controversy.
The bill introduces a new Section 114C to the Income Tax Ordinance, 2001, clearly defining the parameters of “eligible” and “ineligible” persons. An eligible person is one who has filed returns for the preceding tax year and has disclosed sufficient resources in their wealth or financial statements. Conversely, those falling short of these requirements are classified as ineligible and, under the original draft, were to be barred from major financial transactions, including cash withdrawal, property investments, and securities acquisitions.
However, the amendment now makes a bold exception: even an ineligible person may legally withdraw up to Rs100 million in cash annually from all bank accounts combined. This shift marks a significant deviation from the government’s original hardline approach to documenting the economy and cracking down on tax evasion.
The move has raised eyebrows among tax experts and economists, who argue that such a large cash withdrawal allowance undermines efforts to formalize financial transactions and eliminate the undocumented economy. Allowing ineligible individuals to make such vast withdrawals without scrutiny could potentially open floodgates for misuse, money laundering, and further erosion of the tax net.
The amended proposal stipulates that the Rs100 million limit applies collectively to all bank accounts held by a single individual. While proponents argue that this provides breathing space for genuine transactions in a cash-driven economy, critics view it as a dangerous loophole that weakens the very essence of tax reform.
The provision, if approved, will mean that cash withdrawal—once a red flag for ineligible taxpayers—will now be permitted up to a staggering Rs100 million per annum, sending mixed signals on the government’s commitment to curbing undocumented wealth flows.
As the nation watches closely, the final decision by the National Assembly on this contentious clause could redefine Pakistan’s financial compliance narrative—either tightening the net or tearing a massive hole in it.