Pakistan's export sector has urged the government to address key outstanding issues following the approval of the FY2026-27 federal budget, including the removal of industrial power cross-subsidies and the release of pending refunds amounting to Rs327 billion.

The demands were presented during a meeting with Minister of State for Finance Bilal Azhar Kayani, who has been tasked by Prime Minister Shehbaz Sharif with engaging industry representatives and resolving concerns affecting the country's export sector.

The delegation, comprising leading representatives from the textile industry and major chambers of commerce, emphasized that the continuation of cross-subsidies in B3 and B4 industrial electricity tariffs is significantly increasing production costs and reducing the international competitiveness of Pakistan's export-oriented industries.

Industry representatives noted that electricity remains one of the largest components of manufacturing costs, particularly for textile exporters. They argued that removing the cross-subsidy would improve cost competitiveness and support efforts to exceed Pakistan's FY2026-27 export targets.

The business community also highlighted the growing liquidity challenges caused by delayed government payments, urging authorities to announce a clear timeline for clearing Rs327 billion in outstanding refunds. The pending amount includes sales tax refunds, duty drawbacks, income tax refunds, Drawback of Local Taxes and Levies (DLTL), and Technology Upgradation Fund (TUF) claims.

Exporters further requested improvements to the sales tax refund mechanism, particularly for small and medium-sized commercial exporters, stating that faster refund processing would strengthen cash flows and improve operational efficiency.

Responding to the concerns, officials of the Federal Board of Revenue (FBR) agreed to establish dedicated committees to examine the taxation-related issues raised by exporters. The government also assured industry representatives that follow-up meetings on electricity tariffs and other unresolved matters would be held in the coming days.

The finance ministry reaffirmed its commitment to supporting Pakistan's export sector, emphasizing that improving the ease of doing business, enhancing industrial competitiveness, and facilitating exporters remain key priorities of the government's economic agenda.

Industry representatives expressed optimism that timely resolution of energy pricing issues and the release of pending refunds would strengthen Pakistan's export performance, improve liquidity across the manufacturing sector, and support sustainable economic growth.