Commerce Desk
Islamabad: The Pakistan Textile Council (PTC) has written to Prime Minister Shehbaz Sharif, urging the government to preserve the Export Facilitation Scheme (EFS) for all legitimate export inputs and to reject demands to exclude all yarns and fabrics under Chapters 52 and 55 of the Customs Tariff. The letter, signed by Chairman Fawad Anwar, was copied to the FBR chairman and the commerce secretary.
PTC backed government action against misdeclaration and misuse of EFS, but said domestic-market-focused associations are now seeking further exclusions, after raw cotton, cotton yarn and grey cloth were removed in 2025. It said this contradicts earlier understandings.
The council argued that global demand has shifted to man-made fibres (MMF), which make up about 63 percent of world textile and apparel trade but only 12 percent of Pakistan’s exports. Pakistan has almost no viscose or lyocell production, so exporters depend on imported MMF inputs specified by buyers.
PTC warned that further exclusions would raise costs, lock up working capital, deter investment and weaken buyer confidence.
It asked the PM to keep EFS open to legitimate inputs, direct FBR to strengthen audits and penalties, and address domestic suppliers’ concerns by restoring zero-rating on local input supplies rather than taxing imports.
