Prime Minister Shehbaz Sharif has directed concerned departments to ensure swift payment of tax refunds to exporters, warning that delays would not be tolerated as Pakistan grapples with a prolonged dip in merchandise exports.
Chairing a meeting on export promotion in Islamabad on Wednesday, the premier emphasized the importance of institutional reforms, enhanced facilitation, and addressing hurdles faced by businesses. The discussion focused in particular on the slump in agricultural shipments, notably rice.
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Despite legislation introduced two years ago that mandated sales tax refunds within 72 hours, the law remains unimplemented. Exporters say the Federal Board of Revenue continues to process refunds monthly, creating cash flow challenges for firms that rely heavily on timely settlements.
وزیراعظم محمد شہباز شریف کی زیرِ صدارت ملکی برآمدات کے فروغ پر جائزہ اجلاس
برآمدات پر مبنی ترقیاتی اہداف کا حصول ہماری ترجیح ہے، وزیراعظم
وزیراعظم کی برآمدات خصوصاً زرعی برآمدات میں اضافے اور تجارتی خسارے میں کمی کے حوالے سے لائحہ عمل تیار کرنے کی ہدایت pic.twitter.com/u7B1AxHykf
— Shehbaz Digital Media (@ShehbazDigital) January 7, 2026
Industry estimates suggest that pending sales tax refunds have climbed to around Rs50 billion, while the FBR disburses roughly Rs35bn each month. Exporters have also flagged rising income tax refund claims during the current fiscal year, further tightening liquidity across key sectors.
The meeting was held against the backdrop of a persistent downturn in export performance. Pakistan’s merchandise exports contracted by 20.41 per cent to $2.317bn in December 2025 compared to $2.911bn a year earlier, marking the fifth consecutive monthly decline. For July–December FY26, exports fell 8.70pc to $15.184bn from $16.631bn in the same period last year.
According to an official statement from the Prime Minister’s Secretariat, Mr Sharif instructed stakeholders to formulate a comprehensive plan aimed at boosting exports, reducing the trade deficit, and expanding agricultural shipments. He stressed that export-led growth remained a top government priority.
Read More: No valid sales tax refund claims pending, FBR tells Senate panel
The prime minister also called for a coordinated strategy with the Rice Exporters Association to address weakening paddy exports, which have slowed in recent months. Rice remains one of Pakistan’s key commodities to Afghanistan, though bilateral trade has been suspended since Oct 11, 2025.