Karachi: Foreign investors operating in Pakistan have strongly urged the Federal Board of Revenue (FBR) to immediately release long-pending tax refunds amounting to Rs103 billion, warning that persistent delays are causing severe liquidity constraints and disrupting business operations.
The demand was made by the Overseas Investors Chamber of Commerce and Industry (OICCI), which represents leading foreign investors in Pakistan. In a letter dated February 24, 2026, addressed to FBR Chairman Rashid Mahmood Langrial, OICCI Secretary General M. Abdul Aleem highlighted the growing backlog of refund claims despite repeated follow-ups.
According to OICCI, outstanding tax refunds have surged to Rs103 billion as of February 2026, up from Rs96 billion in November 2025, reflecting a nearly 7% increase in just three months. The total includes Rs65 billion in income tax refunds and Rs37 billion in sales tax refunds.
Region-wise, Karachi-based members account for Rs74 billion, followed by Rs16 billion in Lahore and Rs13 billion in Islamabad. OICCI noted that the mounting backlog is exerting significant financial pressure on foreign companies, many of which are major contributors to Pakistan’s economy and employment.
The chamber reiterated its earlier recommendation, submitted on January 30, to allow adjustment of Super Tax liabilities against pending refunds to ease liquidity stress. It also called for the introduction of a transparent, time-bound refund mechanism to prevent further accumulation.
OICCI emphasized that swift resolution of the refund issue is critical to restoring investor confidence and strengthening Pakistan’s foreign direct investment (FDI) outlook.