The Federal Board of Revenue (FBR) has been alerted to the situation, which is exacerbated by bureaucratic hurdles within the relevant tax offices.

The lack of cash flow, stemming from these unpaid refunds, has led to a halt in exports. The FBR has instructed the Chief Commissioner of the Regional Tax Office (RTO) to prioritize resolving these issues.

Refund claims from the Sargodha RTO for the period of July 2023 to June 2024 remain unprocessed.

Exporters, particularly those dealing with citrus fruits, have reported significant losses as they rely on timely refunds to manage their seasonal business.

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The All Pakistan Fruit and Vegetable Exporters, Importers, and Merchants Association (PFVA) has emphasized that these delays are not only affecting their operations but also resulting in substantial losses of foreign exchange for the country.

Despite various automated systems and past directives from the Prime Minister to expedite refund processes, exporters have not seen improvements.

The situation is critical, with claims from the previous tax year still pending, impacting their ability to meet current and future export demands.

The PFVA has urged the FBR to take immediate action to resolve the ongoing issues and facilitate the release of pending refunds.