LAHORE: Pakistan’s textile millers have welcomed a Customs crackdown on import fraud but say more must be done to protect local industry.
The All Pakistan Textile Mills Association (APTMA) has praised Pakistan Customs for cracking down on misdeclaration and misuse of the Export Facilitation Scheme (EFS), particularly in fabric imports, while urging stronger measures against illicit trade.
The APTMA said duty- and tax-free imports under EFS give foreign products an unfair edge over local inputs, which face 18 percent sales tax. Excluding cotton yarn from the scheme has already cut its imports by 42 percent, to 21,587 tonnes in the first quarter of FY2027.
However, the association warned of continued abuse in man-made yarns and fabrics. The EFS imports of man-made yarn jumped from 3,056 to 12,773 tonnes since FY2024-Q1, while fabric rose from 660 to 8,628 tonnes, without a matching rise in exports. The Customs recently found fabric coloured with food dye to pass as dyed cloth.
The APTMA urged the government to exclude all yarns and fabrics under Chapters 52 and 55 from EFS, revise customs values quarterly, and form a joint committee with the FBR to curb under-invoicing, protecting jobs and revenue.
Copyright Business Recorder, 2026