The Pakistan Textile Council (PTC), a not-for-profit research and advocacy platform, has raised strong concerns over recent amendments to the Export Facilitation Scheme (EFS), warning that the lack of clarity on excluded raw materials is creating operational hurdles for exporters and customs authorities, and risks disrupting supply chains in the country’s largest export-earning sector.
In a letter addressed to Chairman Federal Board of Revenue (FBR), Rashid Langrial, the PTC on Wednesday conveyed its serious reservations on the recently notified amendments to the EFS vide letter No 001/FBR/01082025 dated August 1st, 2025.
The EFS is a key government initiative designed to support Pakistan’s value-added export sector by lowering trade costs and expanding output through various import and export facilitation measures, including the exemption of duties and taxes on input goods.
This scheme aims to enhance global competitiveness for Pakistani manufacturers and reduce the current account deficit by enabling them to import high-quality raw materials and components without upfront tax burdens.
In its letter, PTC said that it does not support the policy in its amended form, as exclusion of key raw materials undermines the facilitation intent of the scheme and weakens the export sector’s competitiveness.
PTC warns FBR’s new amendments will cripple Pakistan’s textile exports
“Notwithstanding these fundamental objections, different PTC member companies have approached the Council to highlight serious operational difficulties that have arisen as a result of the said amendments,” it said.
PTC noted that while cotton, cotton yarn, and cotton grey cloth have been excluded from the ambit of EFS, the exact HS codes/tariff lines corresponding to these items have not been notified, which has created confusion for:
- Exporters, who are unable to determine whether their import consignments fall under the exclusion, and
- Customs authorities, who are finding it difficult to process and regulate transactions consistently.
“This ambiguity is already causing procedural bottlenecks and has the potential to disrupt supply chains in the textile sector – Pakistan’s largest export-earning industry.
“Accordingly, while reiterating our strong opposition to the amendments themselves, PTC respectfully requests that FBR urgently issue a clarification specifying the exact tariff lines excluded from the EFS.
This will at least resolve the immediate operational problems and allow exporters and customs officials to act with certainty and uniformity,” it said
PTC urged FBR to address this matter promptly in the national interest to prevent avoidable disruption in export operations.
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