EFS: PTC seeks clarification from FBR

ISLAMABAD: Pakistan Textile Council (PTC) has sought clarification on amendments to Export Facilitation Scheme (EFS) recently notified by the Federal Board of Revenue (FBR).
In a letter to Chairman FBR, Rashid Mehmood Langrial, Chairman PTC, Fawad Anwar has cited reference to recently notified amendments to the Export Facilitation Scheme (EFS) vide S.R.O. No. 1435(1)/2025 on August 5, 2025.
According to the letter, PTC, representing leading textile and apparel exporters of Pakistan, has already conveyed its serious reservations on the recently notified amendments to the Export Facilitation Scheme (EFS) vide letter No 001/FBR/01082025 dated August 1st, 2025. PTC does not support the policy in its amended form, as exclusion of key raw materials undermines the facilitation intent of the scheme and weakens the export sector’s competitiveness.
Notwithstanding these fundamental objections, different PTC member companies have approached the Council to highlight serious operational difficulties that have arisen as a result of the said amendments. Specifically, while cotton, cotton yarn, and cotton grey cloth have been excluded from the ambit of EFS, the exact HS codes/tariff lines corresponding to these items have not been notified. This lack of clarity has created confusion for: (i) exporters, who are unable to determine whether their import consignments fall under the exclusion, and (ii) customs authorities, who are finding it difficult 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, Pakistan’s largest export-earning industry.
Accordingly, while reiterating our strong opposition to the amendments themselves, PTC has requested that FBR may urgently issue a clarification specifying the exact tariff lines excluded from the EFS. This will at least resolve the immediate operational problems and allow exporters and customs officials to act with certainty and uniformity.
“We trust that FBR will address this matter promptly in the national interest to prevent avoidable disruption in export operations, “Mr. Anwar added.