KARACHI/ISLAMABAD: Multinational companies operating in Pakistan on Thursday raised concerns over delayed tax refunds, alleged harassment and the collection of advance taxes by the Federal Board of Revenue (FBR) during a meeting with the newly inducted director-general of the Tax Policy Office (TPO) at the Finance Division.
The Overseas Investors Chamber of Commerce and Industry (OICCI), which represents more than 200 multinational companies operating in the country, also urged the government to reduce the super tax rate from 10 per cent to 6.0 per cent in the federal budget for 2026-27 and to abolish it gradually over a three-year period.
In addition, OICCI members called for a reduction in the corporate tax rate by one percentage point each year over the next four years.
According to an official statement issued on Thursday, OICCI hosted Dr Najeeb Memon, director general at TPO (Finance Division) for an interactive session with its members. The engagement was aimed at fostering constructive dialogue on tax policy challenges and reform priorities affecting Pakistan’s investment climate.
During the session, OICCI members shared broader business and investment-related tax concerns, deliberately focusing on systemic and structural issues rather than operational or case-specific matters. While acknowledging progress on macroeconomic stabilisation, participants underscored the need for greater predictability, consistency and transparency in tax policy and its implementation.
Members highlighted key considerations for the Tax Policy Board, including the importance of a stable and predictable tax framework, reduced policy uncertainty and closer alignment between tax policy intent and on-ground implementation. Persistent challenges such as prolonged delays in tax refund settlements, frequent changes in tax measures and the rising cumulative cost of doing business were identified as areas requiring policy-level intervention.
The OICCI also stressed the need to strengthen institutional coordination, simplify tax procedures and adopt a more consultative approach to future tax reforms to restore investor confidence and support sustainable foreign direct investment (FDI) inflows.
Addressing the session, Memon appreciated the quality of engagement with OICCI members and assured participants that stakeholder input remained central to effective tax policymaking.“Engagements such as this with key economic stakeholders help the government understand investor perspectives at a strategic level. The Tax Policy Office values evidence-based input from the OICCI and its members, which will be carefully considered as we work towards a more coherent, predictable and growth-oriented tax policy framework,” he said.
OICCI President Yousaf Hussain said the real value of proposed tax policy reforms lay in how they were translated into improved predictability, consistency and meaningful stakeholder engagement.
“Businesses plan over long horizons, and frequent changes, unclear interpretations and retrospective measures undermine confidence and raise the cost of capital. A consultative, well-signalled, medium-term tax policy framework focused on broadening the tax base, simplifying compliance and aligning taxation with national priorities such as investment, exports and job creation would significantly improve investor sentiment and support sustainable economic growth,” he said.
OICCI Secretary General M Abdul Aleem emphasised the importance of tax reforms in sustaining investor confidence. “Foreign investors are increasingly looking beyond short-term stabilisation towards structural reforms. A predictable tax regime, timely settlement of pending tax refunds and consistent policy implementation are essential to improving Pakistan’s competitiveness and positioning it as an attractive investment destination,” he said.
The session concluded with both sides agreeing to maintain regular engagement to ensure that investor perspectives continue to inform tax policy discussions, with the shared objective of improving predictability, consistency and investor confidence in Pakistan’s tax framework.
In a separate meeting, the Pakistan Business Council (PBC) on Thursday welcomed Dr Najeeb Ahmed Memon, during a meeting with business leaders as part of the government’s outreach on tax reforms.
According to a statement, the engagement focused on separating tax policy from revenue administration and developing a more predictable, growth-oriented tax framework. Dr Memon outlined the TPO’s mandate and stressed the importance of structured consultation with industry to address distortions in the tax regime and support investment, competitiveness and economic formalisation.
The PBC reiterated its long-standing support for separating tax policy from tax administration, maintaining that tax policy should be long-term, consistent and predictable to facilitate investment, exports and sustainable growth, while ensuring a level playing field for compliant businesses.
PBC Chairperson Dr Zeelaf Munir described the creation of the TPO as a positive institutional step and welcomed the consultative approach. She said tax reform was essential for documentation and long-term growth, and that industry engagement was critical to designing workable, evidence-based policies.
Dr Memon said consultations with industry stakeholders were vital to building a credible tax policy framework that supports growth, investment and economic documentation, adding that input from the PBC would help shape pragmatic and sustainable reforms.
The PBC emphasised that a transparent and equitable tax system remained central to improving Pakistan’s investment climate and supporting long-term economic growth.
