FBR assures exporters of relief as blacklisting, refund delays raise concerns
KARACHI: Pakistan’s export-oriented textile sector has raised concerns over the blacklisting of exporters, suspension of sales tax registrations and delays in tax refunds, prompting the Federal Board of Revenue (FBR) to assure the industry of intervention to resolve outstanding issues.
The assurance came during a meeting between FBR Chairman Rashid Mahmood Langrial and a delegation of the Towel Manufacturers’ Association of Pakistan (TMA) at Governor House Karachi on November 4, in the presence of Sindh Governor Syed Muhammad Nehal Hashmi.
The delegation, led by TMA Patron-in-Chief Feroze Alam Lari and Chairman Rehan Mehtab Chawla, highlighted taxation and regulatory challenges affecting export-oriented industries, particularly the towel and textile sectors.
A key concern raised during the meeting was the blacklisting of exporters and suspension of their tax registrations, which the association said had serious implications for business operations and continuity.
Responding to the concerns, the FBR chairman assured the delegation that issues relating to exporters’ blacklisting would be resolved. He also designated a Member of FBR (Inland Revenue) to coordinate directly with the association and facilitate the resolution of complaints involving suspended registrations, blacklisting and pending sales tax refunds.
The development comes as exporters continue to seek a more predictable taxation framework to improve liquidity and strengthen Pakistan’s export competitiveness.
The TMA delegation also called for restoration of the zero-rating regime under SRO 1125(1)/2011 for five major export-oriented sectors, arguing that the facility would help ease liquidity constraints, prevent the accumulation of sales tax refunds and reduce financial and administrative burdens on businesses.
The association maintained that practical and transparent tax measures were essential to improving the ease of doing business and facilitating exporters.
Delayed refunds and regulatory complications can tie up working capital and create additional financial pressures for export-oriented businesses. However, the association did not disclose the number of exporters affected by blacklisting or the total volume of pending refund claims.
The TMA welcomed the FBR chairman’s response and expressed hope that the commitments made during the meeting would translate into concrete measures.
It also appreciated the Sindh governor’s role in facilitating the interaction between the industry and the FBR leadership.
The association said timely settlement of legitimate refund claims, resolution of regulatory disputes and a facilitative taxation framework were essential for sustaining export-oriented industries, strengthening foreign exchange earnings and generating employment.
The proposed direct coordination mechanism between the FBR and TMA is expected to provide a channel for addressing exporters’ outstanding complaints, although its effectiveness will depend on the implementation of the commitments made during the meeting.