The All Pakistan Textile Mills Association (APTMA) has expressed significant concerns regarding the Export Facilitation Scheme (EFS), highlighting how loopholes in the system are adversely affecting domestic textile producers. According to TechJuice, APTMA has identified that imported cotton fabric is being misdeclared, which is creating 'unfair competition' and threatening the sustainability of local textile units. The association has communicated these issues to the Federal Board of Revenue (FBR), emphasizing the urgent need for corrective measures to protect domestic interests. This sentiment is echoed by ProPakistani, which reports that despite the exclusion of raw cotton, cotton yarn, and grey fabric from the EFS under SRO 1435(I)/2025, imports of woven cotton fabric continue to exploit alternative descriptions such as 'prepared for dyeing'. This allows the imported fabric to remain zero-rated, while domestically produced fabric is subjected to an 18 percent sales tax, creating a significant disadvantage for local manufacturers.
TEXTILES
Textile Industry Warns of Imported Fabric Undermining Local Producers

APTMA warns that EFS loopholes allow misdeclared imported cotton to undercut local producers, urging FBR for action to protect domestic textile industry from unfair competition and tax issues.
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Business Recorder
Updated 22h agoTE
TechJuice
Updated 1 day agoPR