PM urged to reject yarn exclusion from EFS

In a Tuesday statement, the Pakistan Textile Council urged Prime Minister Shehbaz Sharif to reject proposals that would remove all yarns and fabrics in Chapters 52 and 55 of the customs tariff from the Export Facilitation Scheme. Chairman Fawad Anwar warned that such a step would cause lasting damage to value-added shipments abroad. The Express Tribune reported that copies went to the FBR chairman and the commerce secretary.

The council backs curbs on misdeclaration and misuse, yet notes domestic-market groups want more exclusions, though raw cotton, cotton yarn and grey cloth had already been excluded in 2025 under SRO1359(I)/2025. The council says this runs against an earlier understanding reached in consultations that no more exclusions were planned. It also cited Textile Exchange data showing synthetic fibres made up 69% of global fibre output in 2024, while MMF goods make up about 12% of the country's textile and apparel shipments.

The council seeks three things: EFS access for all legitimate inputs with no more yarn or fabric exclusions, tougher FBR audits and penalties, and restored zero-rating on local supplies instead of taxes on imports. Chairman Fawad Anwar argued that a few cases of abuse cannot justify punishing legitimate exporters. The council added that the sector remains the country's biggest export earner.