Uncertainty Over Excluded Inputs Hurts Textile Exporters
The Pakistan Textile Council (PTC), a non-profit research and advocacy body, has issued a stark warning over recent amendments to the Export Facilitation Scheme (EFS), citing the ambiguous exclusion of key raw materials that are already crippling textile exports.
In a letter dated August 1, 2025, addressed to the Chairman of the Federal Board of Revenue (FBR), Rashid Langrial, the PTC voiced its strong objections to the policy changes. The revised EFS, a cornerstone initiative designed to alleviate trade costs and bolster value-added exports, now excludes critical inputs such as cotton, cotton yarn, and cotton grey cloth—but crucially, fails to specify the relevant HS codes/tariff lines.
This omission has led to significant confusion among stakeholders:
- Exporters are uncertain whether their imports fall within the exclusion criteria.
- Customs authorities are struggling with inconsistent processing and enforcement.
The PTC warns that these procedural bottlenecks pose a serious threat to Pakistan’s largest export sector, disrupting supply chains at a time when clarity is most needed. As an immediate measure, the Council is urging the FBR to issue detailed clarifications regarding the excluded tariff lines to restore operational certainty.
In closing, the PTC emphasized the urgent need for resolution, calling on the government to prevent avoidable setbacks in export operations and uphold the EFS’s critical role in enhancing Pakistan’s global competitiveness
Source:
The Pakistan Textile Council (PTC) has raised serious concerns over recent amendments to the Export Facilitation Scheme (EFS.
