ISLAMABAD: The Pakistan Textile Council (PTC) has warned that the exclusion of key raw materials from the Export Facilitation Scheme (EFS) risks undermining the competitiveness of Pakistan’s textile exports.

In a letter to Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial, the PTC expressed strong reservations over recent amendments to the scheme, notified via SRO 1435 of 2025. The council said the removal of cotton, cotton yarn, and cotton grey cloth from the scheme’s coverage contradicts the core objectives of the EFS.

Textile exporters face delays and disruptions

The letter, released to the media through an official commerce ministry WhatsApp group, stated that several member companies are already facing operational disruptions. A key concern is the lack of clarity regarding the harmonised system (HS) codes or tariff lines associated with the excluded materials, which has led to confusion among exporters and customs officials alike.

Exporters are reportedly unable to determine whether their import consignments fall under the exclusion, while customs authorities are struggling to apply and enforce the new rules uniformly. The resulting uncertainty, the PTC warned, is causing procedural delays and poses a threat to supply chains in the textile sector, the country’s largest source of foreign exchange earnings.

Reiterating its opposition to the amendments, the council urged the FBR to immediately issue a clarification specifying the exact tariff lines excluded from the EFS. It said this step is critical to avoiding further disruption and enabling exporters and regulators to proceed with clarity.

“We trust that the FBR will address this matter promptly in the national interest to prevent avoidable disruption in export operations,” the PTC said.

Published in Dawn, August 28th, 2025