ISLAMABAD – The Pakistan Textile Council (PTC) has raised serious concerns over recent amendments to the Export Facilitation Scheme (EFS), cautioning that the changes could lead to major disruptions in Pakistan’s textile exports—its largest export-earning sector.
In a formal letter to Federal Board of Revenue (FBR) Chairman Rashid Langrial, dated August 1st, 2025, the PTC strongly objected to the revised policy under letter No 001/FBR/01082025. It stated that the exclusion of critical raw materials from the scheme has created uncertainty among exporters and customs officials, threatening the smooth functioning of supply chains.
The EFS is a key initiative aimed at reducing trade costs and boosting exports by allowing duty- and tax-free import of raw materials. However, the recent amendments have removed cotton, cotton yarn, and cotton grey cloth from the scheme—without specifying the exact HS codes or tariff lines affected.
“This lack of clarity is creating confusion,” the PTC said, “as exporters cannot determine if their imports fall under the excluded categories, and customs authorities are struggling to regulate transactions consistently.”
The Council warned that the resulting procedural delays are already affecting business operations and risk harming Pakistan’s export performance at a critical economic juncture.
Despite opposing the amendments altogether, the PTC urged the FBR to issue immediate clarification on the specific tariff lines excluded from the EFS. Doing so, it said, would prevent further confusion and allow stakeholders to operate with certainty.
Highlighting the national economic stakes, the PTC emphasized that failure to resolve these issues could weaken Pakistan’s competitiveness in global markets and jeopardize foreign exchange earnings.
It concluded by calling on the FBR to act swiftly in the national interest to avoid avoidable disruption and ensure the continuity of export activities in the textile sector
