Islamabad, May 29, 2025 – The Federal Board of Revenue (FBR) has withheld both sales tax and income tax refunds claimed by Utopia Industries for over a year, causing serious financial strain on one of Pakistan’s top export companies.
According to official sources, the refunds have remained pending since April 2024 despite repeated submissions and follow-ups by the company.
Utopia Industries, known globally for its textile and plastic products such as mattress covers, pillows, comforters, and household items, is among the top two Amazon sellers worldwide, boasting an annual revenue of $170 million. The prolonged delay in the release of refunds has led to severe liquidity problems for the company. These include reduced production output, difficulty in meeting salary commitments to its workforce, and setbacks in operational continuity.
Frustrated by the FBR’s inaction, a delegation from Utopia Industries approached Haroon Akhtar Khan, Special Assistant to the Prime Minister (SAPM) on Industries and Production. In a meeting held Thursday, the delegation informed SAPM Haroon Akhtar about the challenges resulting from the non-payment of refunds by the FBR. They highlighted how the delay is affecting not only their financial stability but also the morale of over 3,000 employees.
Haroon Akhtar expressed deep concern over the situation and acknowledged the adverse impact of refund delays on the industrial sector. He emphasized the need to accelerate the refund process, particularly for major exporters like Utopia Industries, whose performance directly contributes to the country’s economic and employment indicators.
Acting swiftly, the SAPM arranged a dialogue between Utopia Industries and the Chairman of the FBR. The FBR chairman assured the delegation that all legitimate refund claims would be addressed without further delay. He committed to resolving the issue in coordination with relevant tax departments.
Haroon Akhtar reaffirmed the government’s stance on supporting key industries and reiterated Prime Minister Shehbaz Sharif’s directive to prioritize the business community’s needs. Utopia Industries representatives expressed appreciation for the government’s timely intervention and voiced hope for prompt disbursement of funds.
The resolution of Utopia’s refund crisis is expected to restore confidence among exporters who have long awaited meaningful FBR reform and efficiency.