Foreign investors in Pakistan have urged the Federal Board of Revenue to immediately release pending tax refunds amounting to Rs. 103 billion, warning that continued delays are creating serious liquidity problems for businesses.
The Overseas Investors Chamber of Commerce and Industry stated that the growing backlog of refunds is disrupting business operations and weakening investor confidence in Pakistan’s economy.
In a formal letter addressed to the FBR, OICCI highlighted that refund claims have continued to rise despite repeated requests for their settlement. The chamber noted that the pending amount has increased from Rs. 96 billion in November 2025 to Rs. 103 billion in February 2026, showing an increase of nearly 7 percent within three months.
According to the chamber, the total outstanding amount includes Rs. 65 billion in income tax refunds and Rs. 37 billion in sales tax refunds owed to its member companies.
Region-wise data shows that the largest share of pending refunds, around Rs. 74 billion, belongs to companies based in Karachi, followed by Rs. 16 billion in Lahore and Rs. 13 billion in Islamabad.
OICCI warned that the accumulation of refunds is creating serious operational challenges, particularly for large foreign investors who depend on steady cash flows to sustain business activities. Delays in refunds are forcing companies to manage working capital shortages, which directly affects production and investment planning.
The chamber also repeated its earlier recommendation that Super Tax liabilities should be adjusted against pending refunds, stating that this step could provide immediate financial relief to companies while reducing pressure on their cash positions.
Calling for urgent action, OICCI requested the FBR chairman to ensure faster processing of refund claims and to introduce a transparent and time-bound system to prevent further accumulation in the future.
The organization stressed that resolving the refund issue is critical for improving Pakistan’s investment climate and for supporting foreign direct investment inflows. It added that timely refunds would help restore investor confidence and encourage long-term economic growth.
