KARACHI: The Gulf war has curbed the outflow of black money from Pakistan to Dubai, while funds already invested are returning and being diverted into property in the country, according to sources in the property and currency markets. Thousands of Pakistanis have invested hundreds of millions of dollars in Dubai, particularly in property. Pakistan was identified twice as the second-largest foreign investor in Dubai property. It was widely believed that black money created in Pakistan had a safe haven in Dubai and was a catalyst for property price hikes there. “About $60 million in illegal (or black) money is created in Pakistan per month and has been invested in Dubai, but this has now stopped,” said All Pakistan Builders Association Chairman Hassan Bakhshi. Currency dealers said the situation has reversed, with black money in Dubai stuck and recovery difficult due to the ongoing war. Pakistanis struggle to recover investments as black money fuels Karachi property rally “The higher remittances from Dubai reflect that Pakistanis are sending back their liquid assets to Pakistan,” said a currency dealer. The war has changed Dubai’s appeal as a destination for investment and tourism. I
