ISLAMABAD: The Federal Board of Revenue (FBR) has released verified refunds of Rs65 billion to exporters.

An official announcement of the FBR on Monday said that the decision was taken after directives of Prime Minister Shehbaz Sharif during his first speech on the floor of the National Assembly after being elected as the 24th premier of Pakistan on Sunday.

The released refunds issued to exporters would lead to better exports and an increase in the forex reserves of Pakistan.

Exporters said that this is a welcome move by the prime minister. Sales tax refund paid against all refund payment orders (RPOs). However, the refunds are still pending in sales tax deferred, duty drawback, income tax, DDT /DLTL, TUF and markup subsidy.

According to an official, an amount of Rs50bn is ready for payment with SBP on account of DDT, TUF and markup subsidy. An amount of approximately Rs250bn stuck with FBR on account of sales tax deferred, income tax, income tax credit and duty drawback, added the source.

Published in Dawn, March 5th, 2024