On the directives of Prime Minister Shehbaz Sharif to hold monthly meetings with the Karachi business community in the first week of every month, Chairman FBR Rashid Mahmood Langrial, along with his team, held a meeting with the office-bearers of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
The meeting held detailed deliberations on key issues facing the business community, including taxation, customs, imports and exports, and refunds. The FBR Chairman agreed to several proposals and issued on-the-spot directives to relevant officials on several matters.
Briefing on the meeting’s key decisions, FPCCI Senior Vice President Saquib Fayyaz Magoon said preventing misuse of grey fabric under the Export Facilitation Scheme (EFS) was a significant development.
Saquib Fayyaz Magoon stated that exporters were facing difficulties due to higher valuation rulings on raw materials imported under the EFS. The 10 per cent value-addition requirement under the Export Facilitation Scheme (EFS) applies to exports of finished goods, not imports of industrial raw materials.
He said that in the past, exports could be held up if the required 10 per cent value addition was not reflected in the finished products. However, exports will no longer be stopped solely on this basis. The relevant Goods Declaration (GD) will be allowed to proceed for export. At the same time, the value addition, overall cost and valuation details of the products will be reviewed subsequently to determine whether the prescribed requirements have been met.
The meeting also specifically addressed pre-arrival GD filing. FPCCI took the position that due to the Funds Identification (FI) condition imposed by banks, importers often wait until the last moment to arrange payment, which discourages pre-arrival GD filing. In principle, the FBR agreed that it would check the FI condition at the out-charge stage to increase the number of pre-arrival GDs and reduce clearance time. The FBR will also consider necessary amendments to State Bank regulations in this regard.
FPCCI also demanded that the period for resolution of classification disputes be reduced from 120 days. Chairman FBR immediately issued orders reducing the period from 120 days to 90 days. The meeting also raised anomalies relating to tax exemptions under the Fifth Schedule, and agreed to resolve them immediately in consultation with the relevant departments.
The issues of Income Tax Refunds (IRs) and deferred refunds were also discussed in detail. It had already been decided that deferred refunds would be paid within one to two months; however, the matter of old pending refunds was also raised forcefully in the meeting. He informed that pending refunds amounting to approximately Rs83 billion exist, and the FBR Chairman has directed that they be paid within two to three months.
The business community also received significant relief on sales tax registration. The meeting decided that low-risk sales tax registrations would be completed within one week. For high-risk cases, the meeting said it would obtain verification by contacting the relevant associations and then expedite the registration process.
It was also decided that Income Tax Refunds for which RPOs have been issued since August 2026 would also be paid immediately. The Chairman of the FBR also issued directives to the relevant officials in this regard. The meeting also addressed pending rebates.
According to Saquib Fayyaz Magoon, rebates amounting to approximately Rs43 billion are pending, and the government has decided to pay them over the next two to three months.
In the meeting, the business community also raised concerns about discrimination between industrial and commercial importers in raw material imports and the alleged malpractices that followed. FPCCI demanded that the unnecessary distinction in raw material imports between the two sectors be eliminated. Acknowledging the issue’s importance, the FBR Chairman said the matter would be taken up in the FBR Board to find an appropriate solution.
The meeting also reviewed the slow progress of the scheme introduced for small traders. It was informed that the target was to bring one million traders into the scheme, but so far only about 3,800 — and an estimated 5,000 individuals — have been enrolled. On this occasion, FPCCI offered full cooperation to raise awareness among small traders. The meeting also decided to hold meetings with business leaders and relevant associations to identify obstacles hindering registration under the scheme.
According to Mr. Magoon, FPCCI will play its role in making communication effective among FPCCI, FBR, and small traders, and will provide every possible cooperation, including an awareness campaign, to make the scheme a success.
