Lahore: The Lahore Chamber of Commerce and Industry (LCCI) has called on the Federal Board of Revenue (FBR) to urgently release long-pending tax refunds, emphasizing that the delay is exacerbating financial difficulties for businesses across Pakistan, particularly small and medium enterprises (SMEs). The chamber’s leaders, including President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, and Vice President Shahid Nazir Chaudhry, voiced serious concerns about the impact of withheld refunds on the operational capabilities of companies during an economic downturn marked by high energy costs.
According to Lahore Chamber of Commerce and Industry, the non-release of tax refunds is severely affecting businesses’ liquidity, hindering their ability to manage cash flows, reinvest in operations, expand their ventures, and maintain employment levels. “In this challenging economic environment, timely access to tax refunds could act as a lifeline for many businesses that are struggling to stay afloat. We urgently request the FBR to accelerate the process of refund payments, as withholding these funds is causing severe liquidity problems for businesses,” the office-bearers stated.
They further highlighted the disproportionate impact on SMEs, which are essential to the nation’s economy and particularly vulnerable to cash flow disruptions. Delays in tax refunds are causing these businesses to incur debts at high interest rates, disrupt their supply chains, or even push them towards bankruptcy as they struggle to cover operational costs such as salaries, utilities, and payments to suppliers.
LCCI President Mian Abuzar Shad noted that Pakistan’s economic challenges are further complicated by external pressures such as global inflation, fluctuating commodity prices, and the depreciation of the Pakistani Rupee. He pointed out that these challenges are compounded by delayed refunds, which are choking businesses of critical liquidity, affecting domestic trade and export competitiveness.
The LCCI leadership urged the government to address this longstanding issue promptly. They also proposed that the FBR streamline its refund process to avoid future delays by introducing automated systems or expedited processing for export-oriented businesses, ensuring timely refund disbursements. Improved communication between the FBR and the business community was also recommended to foster a more transparent and efficient refund process.