In a major move to tighten financial regulations and enhance transparency, a critical proposal is being considered for inclusion in Pakistan’s upcoming Budget 2025–26. The proposal recommends mandatory scrutiny of banking transactions exceeding Rs3 million, especially those conducted through personal bank accounts.
The aim is to counter the misuse of personal accounts for undisclosed business dealings and ensure stricter financial accountability.
According to officials involved in the proposal, any banking transaction above the Rs3 million threshold would be flagged for compulsory due diligence by financial institutions and regulatory bodies, unless the transaction is directly linked to verified business operations or documented asset acquisitions. Individuals or entities involved in such high-value transactions would be required to furnish clear evidence to validate the nature and source of the funds.
This move is a direct response to a rising trend in which personal accounts are being used to channel unreported income or facilitate tax evasion. With enhanced monitoring mechanisms, authorities hope to curb this behavior, reduce revenue leakage, and promote a more robust and transparent banking environment.
The proposal also calls for intensified scrutiny of transactions that involve foreign remittances, large cash inflows, or inconsistent financial patterns that don’t align with the account holder’s declared income or profession. In such cases, banks will be obligated to report these activities to the Federal Board of Revenue (FBR) or other relevant watchdog agencies.
By closely monitoring these large transactions, the government aims to create a digital audit trail that makes financial misconduct significantly harder to conceal. This regulatory tightening will also help bring untaxed income into the official fold, supporting broader national efforts for tax compliance and economic documentation.
Not only will the proposed framework boost confidence in the banking sector, but it will also deter potential abuse of personal financial channels. The overarching goal is to align Pakistan’s fiscal policies with international best practices and enhance financial discipline across the board.
If implemented, this rule would mark a significant step forward in modernizing the country’s banking oversight, promoting fair taxation, and reinforcing economic integrity in an era of growing digital and cross-border financial transactions.