LAHORE: The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has issued a strong protest against the recently issued SRO 1359(I)/2025, warning that it poses a serious threat to the country’s largest foreign exchange earning sector — value-added textiles. In a letter addressed to Prime Minister Shehbaz Sharif, PHMA North Zone Chairman Abdul Hameed has called for immediate withdrawal of the SRO and urgent government intervention.
The notification, issued on July 29, 2025, makes key changes to the Export Facilitation Scheme (EFS), placing restrictions on the import of cotton and blended yarns — especially yarn counts between 10 and 40, which are essential for manufacturing export-quality garments. The SRO also reduces the allowable time for material utilization from 24 months to only 9 months. Exporters say the changes will block billions of rupees in sales tax refunds and worsen an already tight liquidity situation.
“This is an SOS appeal. We are not asking for subsidies or favours. We are simply demanding the continuation of policies that were already agreed upon after long consultations,” said Abdul Hameed. “The spinners’ lobby is being protected at the expense of national exports. That is unacceptable.”
He added that value-added textile exports have already crossed $9 billion in the last fiscal year and remain the backbone of Pakistan’s economy. “Any disruption to this industry will have a direct impact on jobs, exports, and foreign exchange inflows,” he warned.
The PHMA said that repeated meetings with government officials, advisors, and economic experts had resulted in an agreement that the import of cotton and blended yarns in the 10–40 count range would remain allowed under EFS. It was also promised that the period of consumption would be extended to 24 months, considering the long lead times involved in international orders. However, the latest SRO contradicts both points.
Abdul Hameed stated that exporters now fear serious delays in fulfilling orders, which could result in penalties from international buyers and possible cancellation of contracts. “We are running production cycles planned months in advance. Sudden policy shifts throw the entire system off balance,” he said.
He also demanded that the current system of insurance guarantees under EFS be replaced with bank guarantees, which are standard practice globally and more reliable for exporters.
Copyright Business Recorder, 2025