ISLAMABAD: Amid falling merchandise exports for the fifth consecutive month, Prime Minister Shehbaz Sharif said on Wednesday that no negligence would be tolerated in the timely payment of tax refunds to exporters.

Reviewing the commodities exports, especially a decline in rice shipments, the premier directed to expedite institutional reforms, augmenting exports, and provision of facilities to exporters.

Two years after the government introduced legislation mandating sales tax refunds to exporters within 72 hours, the law remains unimplemented. In practice, the Federal Board of Revenue (FBR) continues to disburse refunds on a monthly basis, contrary to the stipulated time frame.

Exporters estimate that outstanding sales tax refunds have reached approximately Rs50 billion, while the FBR typically releases around Rs35bn per month. In addition to the sales tax backlog, exporters have also raised concerns over mounting income tax refund claims for the current fiscal year, further straining their cash flows.

Calls for devising a strategy with stakeholders’ input

The meeting was convened at a time when Pakistan’s merchandise exports dipped 20.41 per cent to $2.317bn in December 2025 from $2.911bn over the corresponding period last year, making it the fifth consecutive month of decline in the current fiscal year. In the first half (July-December), the export proceeds recorded a negative growth of 8.70pc to $15.184bn from $16.631bn in the corresponding period last year.

An official announcement of the Prime Minister’s Secretariat said Mr Shehbaz emphasised the need to expedite institutional reforms aimed at boosting exports and providing maximum facilitation to exporters.

The premier directed to prepare a plan of action pertaining to enhancing exports, especially agricultural exports, and reducing the trade deficit. He said achieving export-led development goals was the government’s priority.

However, he directed that a strategy should be devised in collaboration with the Rice Exporters Association to boost paddy exports, which had been declining for the past few months.

It is worth noting that rice remains one of Pakistan’s major export commodities to Afghanistan. However, all trade had been suspended with Kabul since Oct 11, 2025.

Published in Dawn, January 8th, 2026