PTC urges PM to preserve EFS for export inputs

ISLAMABAD (Staff Report): The Pakistan Textile Council (PTC) has urged Prime Minister Muhammad Shehbaz Sharif to preserve the Export Facilitation Scheme (EFS) for all legitimate export inputs and reject demands for exclusion of yarns and fabrics under Chapters 52 and 55 of Customs Tariff.

In a letter signed by Chairman Fawad Anwar, also sent to FBR Chairman and Commerce Secretary, PTC appreciated government action against EFS misuse but said domestic market associations are now seeking further exclusions after raw cotton, cotton yarn and grey cloth were removed in 2025 through SRO.1359.

PTC said this violates earlier understanding of no further exclusions and would seriously harm value-added exports.

It noted global demand has shifted to man-made fibres (MMF), which account for 69% of global fibre production and 63% of textile trade, while Pakistan’s MMF share is only 12%. With almost no local viscose/lyocell production, exporters depend on imported MMF yarns specified by buyers.

PTC said 2025 exclusions already increased costs and liquidity pressure. Further exclusions would block access to key fibres, discourage investment and weaken buyer confidence.

It asked to retain EFS for all inputs, strengthen enforcement via audits and penalties, and restore zero-rating for local supplies to EFS users instead of taxing imports.