Written by Hamza Shahnawaz in Taxation Returning expatriate Pakistanis can claim a limited-period exemption on qualifying foreign-source income under Section 51 of the Income Tax Ordinance for Tax Year 2027. ISLAMABAD: The Federal Board of Revenue (FBR) has clarified that certain foreign-source income of returning expatriate Pakistanis remains exempt from income tax during Tax Year 2027, subject to conditions prescribed under the law. According to the Income Tax Ordinance, 2001, updated up to June 30, 2026, the FBR has explained the provisions of Section 51, which deals with foreign-source income of returning expatriates. Foreign Income Exemption for Returning Pakistanis Under Section 51, foreign-source income earned by a Pakistani citizen in a tax year is exempt from income tax if the individual was not a resident individual in any of the four tax years preceding the year in which they became a resident. The exemption applies for the tax year in which the individual becomes a resident and the following tax year. The provision therefore provides temporary tax relief to Pakistani citizens returning to the country after living abroad, provided they meet the conditions specified in the Income Tax…