Overseas investors seek release of Rs103 billion pending tax refunds

The Overseas Investors Chamber of Commerce and Industry (OICCI) has asked the Federal Board of Revenue (FBR) to expedite payment of pending tax refunds amounting to Rs103 billion, citing liquidity pressure on member companies.

In a letter dated February 24, 2026, addressed to FBR Chairman Rashid Mahmood Langrial, OICCI Secretary General M. Abdul Aleem raised concerns over the growing backlog of income tax and sales tax refunds. He said the outstanding amount had increased despite repeated requests for settlement.

According to the chamber, pending refund claims stood at Rs103 billion as of February 2026, compared with Rs96 billion in November 2025, reflecting an increase of nearly 7% in three months. The total includes Rs65 billion in income tax refunds and Rs37 billion in sales tax refunds.

Of the total outstanding amount, Rs74 billion relates to Karachi-based member companies, followed by Rs16 billion for Lahore and Rs13 billion for Islamabad-based members.

The chamber said the continued buildup of refunds is creating operational and cash flow challenges for companies, many of which are foreign investors operating in Pakistan.

OICCI also referred to its earlier communication dated January 30, in which it proposed adjusting super tax liabilities against pending refund claims where applicable. It urged the tax authority to implement the proposal to provide relief to taxpayers.

The chamber called for the FBR chairman’s intervention to ensure early settlement of refunds and the establishment of a transparent, time-bound mechanism to prevent further accumulation.

OICCI said timely resolution of the issue would support business continuity and contribute to improving the investment environment.