ISLAMABAD: Adviser to the Prime Minister on Finance and Revenue Dr Hafeez Shaikh has directed the Federal Board of Revenue (FBR) to release approximately Rs15 billion refunds to exporters in the next two days to resolve their liquidity issues.

“We have received a directive from the adviser to release the refunds,” FBR Official Spokesperson Dr Hamid Ateeq confirmed to Dawn, adding the amount will be released in the next couple of days.

The directive came from top when exporters met with top officials and Prime Minister Imran Khan and complained about their stuck refunds with the FBR. Normally, FBR blocks release of refunds to show higher revenue growth.

On Thursday, the issue of refunds was also raised in the National Assembly Standing Committee on Finance and Revenue meeting led by its chairman MNA Faiz Ullah. The committee took the issues of refunds, condition of CNICs for traders and real estate.

While admitting the withholding of refunds, Member Operation IRS Seema Shakeel said a committee comprising of exporters and senior officers from FBR was appointed to resolve the technical problems of Form ‘H’. They have completed this assignment, he added.

However, exporters were unhappy with the response of the member and were of the stance that they will not be able to continue their business due to stuck up refunds with the FBR for last six months.

The representatives of exporters also highlighted the weaknesses of Faster’s Refunds System and requested the FBR to address the same at the earliest for smooth functioning of export industries in Pakistan.

Responding to queries of exporter, Shakeel informed that maximum cases of refunds have been accommodated, however, only those cases were pending where requirements were not met properly.

After a threadbare discussion, the committee reiterated that refunds issues should be resolved on priority basis.

President Pakistan Real Estate Investment Forum (PREIF) Shaban Elahi informed the committee that FBR should focus on the problems raised due to unrealistic valuations of properties in different areas of Karachi as well as all over the country.

He also suggested that law may be enacted to protect the end consumer from the builders. He further explored that builders were exceeding their limits by selling more flats or plots as per the approved plan. He was of the opinion that government should immediately intervene in such kind of issues.

Member IR Policy Dr Hameed Ateeq informed that different committees at commissioner levels in 21 cities have been appointed to address the problems of valuation to the stakeholders.

The committee also discussed the matter regarding encashment of security of Reliance Petroleum Industries (Pvt.) Limited by the Customs Authorities. Chief Collector Customs (Karachi) informed the committee about the current status of the matter.

After deliberations the committee advised to Collector Customs Karachi to resolve the matter, amicably, before the meeting of the Sub-Committee of the Standing Committee on Finance, scheduled to be held on March 17.

The meeting was attended by MNAs including Faheem Khan, Qaiser Ahmed Sheikh, Ali Perviz, Dr. Aisha Ghaus Pasha, Nafisa Shah, Dr. Ramesh Kumar Vankwani, Sardar Nasurllah Khan Dreshak and Makhdoom Syed Sami-ul-Hassan Gillani. Senior officers from Ministry of Finance, Revenue and Economic Affairs, FBR, LDA, CDA and FDA were also present.

Published in Dawn, March 13th, 2020