OICCI urges FBR to clear PKR 102.8 billion in pending tax refunds

The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the Federal Board of Revenue (FBR) to expedite approximately PKR 102.8 billion in pending Income Tax and Sales Tax refunds owed to its member companies, saying prolonged delays are putting pressure on liquidity and working capital.

In a letter to FBR Chairman Rashid Mahmood Langrial, the OICCI said its members had around PKR 68 billion in outstanding Income Tax refunds and PKR 34.8 billion in Sales Tax refunds as of August 2026.

The chamber said the overall refund position remained largely unchanged from its earlier submission despite discussions with FBR leadership during a meeting at Custom House in Karachi on August 5.

How are delayed tax refunds affecting foreign investors?

OICCI said the prolonged settlement of what it described as legitimate refund claims was restricting funds available to member companies for routine operations, expansion and future investment.

The chamber represents foreign investors operating across multiple sectors of Pakistan’s economy and said many of its members are among the country’s largest foreign investors.

It said those companies contribute through investment, employment, tax payments and technology transfer.

OICCI said timely settlement of outstanding refunds was important for easing liquidity pressures, strengthening investor confidence and improving Pakistan’s ease-of-doing-business environment.

What is OICCI asking FBR to do?

The chamber asked the FBR chairman to personally intervene and accelerate resolution of the long-standing refund issue.

It urged the tax authority to settle pending Income Tax and Sales Tax refund claims on a priority basis.

OICCI said faster payments would ease liquidity constraints faced by member companies and provide greater room for business activity and continued investment in Pakistan.