The Federal Board of Revenue (FBR) faced criticism during a Special Investment Facilitation Council (SIFC) meeting for alleged misuse of the Export Facilitation Scheme (EFS), resulting in revenue leakages, according to a news report.
Business representatives from Karachi, including members of the Sindh Industrial Estate (SITE) and the All Pakistan Textile Mills Processing Association (APTMPA), highlighted procedural flaws allowing EFS authorizations to exporters who did not meet the prescribed criteria.
The delegation emphasized that EFS Category-A authorizations should only be granted to exporters with at least 60% of their production exported over the past two years, as outlined in the Statutory Regulatory Order (SRO). They proposed a faceless authorization system to eliminate agents’ involvement, which they claimed was a source of illegal income for FBR officials.
FBR officials acknowledged ongoing investigations into cases of EFS misuse and pledged to consult business associations for actionable measures. The SIFC directed the FBR to present a progress report on curbing these irregularities by January 25, 2025.
The meeting also addressed administrative challenges faced by SITE industries, including electricity outages, poor road infrastructure, and inadequate law and order. The Sindh government committed to improving these conditions, with the Chief Secretary Sindh agreeing to address road and water issues and work with law enforcement to enhance security. K-Electric was instructed to engage with business stakeholders and resolve energy-related concerns on priority.
A proposal to establish a SITE Management and Development Company received preliminary support, with the Commerce Ministry tasked to seek input from the Sindh government by January 15, 2025. The association also sought a special allocation from the Export Development Fund (EDF) to support SITE industries, which the Commerce Ministry agreed to consider.
Discussions extended to modernizing textile export facilities, including the installation of combined effluent treatment plants. The Sindh government and the Chamber will conduct a feasibility study and share findings by January 25, 2025. Senior citizens’ difficulties with biometric registration for tax submissions were also raised, prompting the State Bank of Pakistan, NADRA, FBR, and PSW to form a working group to explore mobile biometric solutions.
The delegation further requested waivers on duties for importing biomass boilers to support the textile sector. The FBR was instructed to evaluate the proposal and submit its feasibility by January 20, 2025.
The meeting, attended by prominent business leaders including Jawed Bilwani, Zubair Motiwala, and Suleman Chawala, concluded with assurances of collaborative efforts to resolve issues and enhance industrial productivity.
