The Pakistan Textile Council (PTC) has raised serious concerns over recent amendments to the Export Facilitation Scheme (EFS), warning that ambiguity regarding excluded raw materials is causing operational challenges for exporters and customs authorities and could disrupt supply chains in the country’s largest export-earning sector.
In a letter addressed to Federal Board of Revenue (FBR) Chairman Rashid Langrial on Wednesday, the PTC expressed strong reservations over the amendments notified on August 1, 2025 (Letter No 001/FBR/01082025). The council said the exclusion of key inputs, such as cotton, cotton yarn, and cotton grey cloth, undermines the scheme’s facilitation objectives and weakens the sector’s competitiveness.
The PTC highlighted that the exact HS codes or tariff lines for these excluded items have not been specified, creating confusion for exporters in determining whether their consignments fall under the exclusions, and for customs authorities struggling to process and regulate transactions consistently.
“This ambiguity is already causing procedural bottlenecks and has the potential to disrupt supply chains in the textile sector,” the council said, urging FBR to promptly issue a clarification specifying the exact tariff lines excluded from the EFS.
The EFS is a government initiative designed to support Pakistan’s value-added export sector by reducing trade costs, expanding output, and enabling manufacturers to import high-quality raw materials without upfront tax burdens, thereby enhancing global competitiveness and helping reduce the current account deficit.
PTC emphasized that addressing the issue urgently is essential to prevent avoidable disruptions in export operations and maintain stability in the textile industry.
