ISLAMABAD: Foreign investors operating in Pakistan have expressed serious concerns over delayed tax refunds worth Rs103 billion pending with the Federal Board of Revenue (FBR), warning that prolonged delays are creating liquidity challenges and negatively affecting business operations across the country.
The issue was highlighted by the Overseas Investors Chamber of Commerce and Industry (OICCI), which represents major multinational companies investing in Pakistan.
In a letter dated February 24, 2026, addressed to FBR Chairman Rashid Mahmood Langrial, OICCI Secretary General M. Abdul Aleem pointed out the rising backlog of unpaid refund claims despite repeated engagements with tax authorities.
According to OICCI, pending tax refunds increased to Rs103 billion by February 2026, compared to Rs96 billion in November 2025, marking an increase of nearly 7% within three months. The outstanding amount includes approximately Rs65 billion in income tax refunds and Rs37 billion in sales tax refunds owed to foreign investors.
Region-wise data shows Karachi-based companies account for the largest share of pending refunds at Rs74 billion, followed by Lahore with Rs16 billion and Islamabad with Rs13 billion.
The chamber warned that continued delays are placing financial strain on multinational firms that play a vital role in Pakistan’s economic growth, exports, and employment generation.
The OICCI reiterated its earlier proposal submitted on January 30, suggesting that companies be allowed to adjust Super Tax liabilities against pending refunds to ease cash flow pressures. It also urged authorities to introduce a transparent and time-bound refund processing system to prevent future accumulation.
Foreign investors stressed that timely settlement of refunds is essential to restoring investor confidence and improving Pakistan’s foreign direct investment (FDI) environment, which remains critical for sustainable economic development.
