KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the Federal Board of Revenue (FBR) to expedite the release of pending tax refunds amounting to Rs103 billion, warning that mounting delays are placing serious liquidity pressure on foreign investors and undermining business operations in Pakistan.
In a letter dated February 24, 2026, addressed to Rashid Mahmood Langrial, Secretary General of the OICCI, M. Abdul Aleem highlighted the issue of outstanding refund claims of member companies, stating that the pending amount has increased significantly despite repeated requests for their release.
He also referred to earlier correspondence, including the submission detailing refund claims up to November 2025, and provided an updated status of pending income and sales tax refunds owed to member companies of the OICCI.
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According to OICCI the outstanding refunds claims are continued to surged and as of February 2026, outstanding refund claims have risen to PKR 103 billion, compared to PKR 96 billion reported in November 2025, an increase of nearly 7 percent within just three months.
This comprises pending Income Tax refunds of Rs 65 billion and Rs 37 billion for Sales Tax.
Overall, out of the total pending tax refunds of Rs 103 billion, a high proportion of Rs 74 billion is related to our Karachi-based members, followed by Rs 16 billion for Lahore and Rs 13 billion for Islamabad-based members.
The OICCI noted that the continued accumulation of refunds is creating substantial liquidity constraints and operational challenges for its members, many of whom are major foreign investors in Pakistan.
The chamber also referred to its earlier communication dated January 30, recommending that Super Tax liabilities be adjusted against pending refund claims where applicable. It urged authorities to implement this guidance effectively to provide immediate relief to taxpayers.
Calling for urgent action, OICCI requested the FBR chairman’s personal intervention for the swift settlement of outstanding refunds and the introduction of a transparent, time-bound mechanism to prevent further buildup.
The chamber emphasized that resolving the long-standing issue would help restore investor confidence and support Pakistan’s foreign direct investment objectives.
Copyright Business Recorder, 2026
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