OICCI Urges FBR to Release Rs. 103 Billion in Tax Refunds
The Overseas Investors Chamber of Commerce and Industry (OICCI) has called on the Federal Board of Revenue (FBR) to expedite the disbursement of pending tax refunds amounting to Rs. 103 billion. The chamber warned that the continuous delay in clearing these refunds is causing significant liquidity challenges for foreign investors operating in Pakistan.
In a letter addressed to the FBR, OICCI highlighted that the backlog of tax refunds continues to grow despite multiple requests for resolution, negatively affecting business operations and undermining investor confidence. The unresolved amount represents a 7% increase since November 2025, when pending refunds stood at Rs. 96 billion.
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The Rs. 103 billion includes Rs. 65 billion in income tax refunds and Rs. 37 billion in sales tax refunds owed to member companies of the chamber. Geographically, the majority of these refunds—around Rs. 74 billion—are linked to companies based in Karachi, followed by Rs. 16 billion in Lahore and Rs. 13 billion in Islamabad.
OICCI underscored that the accumulation of these unpaid tax refunds is presenting ongoing operational challenges, particularly for large foreign investors who depend on timely cash flows to maintain their business activities. To provide some immediate relief, the chamber reiterated a previous recommendation that the FBR allow businesses to adjust their Super Tax liabilities against the pending refunds.
The chamber called for urgent intervention, urging the chairman of the FBR to ensure swift processing of these refunds and to implement a transparent, time-bound mechanism to prevent further buildup. Resolving the issue, OICCI argued, is critical to improving Pakistan’s investment climate and sustaining foreign direct investment inflows.
The delayed refunds have become a focal point in discussions about Pakistan’s business environment, with investors citing the resolution of such issues as essential for enhancing economic stability and growth prospects.