New adjustments in FBR could impose a detrimental impact on Pakistan's textile export industry, according to PTC.
The Pakistan Textile Council (PTC) has raised concerns over the recent amendments to the Export Facilitation Scheme (EFS) notified by the Federal Board of Revenue (FBR) on July 29, 2025, via SRO 1359(1)/2025.
In a statement, Fawad Anwar, Chairman of PTC, declared that these amendments effectively constitute a tax on exports. The council believes that the changes, particularly the exclusion of key raw materials like cotton and yarn, will severely undermine Pakistan's textile exports.
The most damaging provision is the exclusion of essential raw materials, including cotton, cotton yarn, and grey cloth, from the scope of EFS. The PTC argues that this exclusion was never agreed upon and will harm the textile sector given these are essential raw materials in exports.
Moreover, the PTC objects to the government's disregard of the recommendations of a high-level government committee, chaired by Planning Minister Ahsan Iqbal, which had reviewed the EFS with private sector consultation. The changes ignore these consensus-based suggestions, according to the council.
The amendments also impose stringent conditions such as impractical 60-day limits on toll manufacturing and detailed vendor disclosure requirements, which PTC considers unworkable and damaging to industry operations.
The council also opposes new intrusive physical sampling requirements imposed on exports, viewing them as burdensome and counterproductive.
The PTC highlights that these changes come at a time of heightened global economic uncertainty and rising protectionism (including recent US reciprocal duties), which already threaten Pakistan's textile export competitiveness.
In response to these concerns, the PTC has submitted detailed objections and policy recommendations to Chairman FBR, Rashid Langrial, and has formally escalated the issue to the Prime Minister's Office, Minister for Planning, Minister for Commerce, and Minister for Finance.
The PTC urges the Government of Pakistan to intervene and suspend the enforcement of these amendments until a consensus-based revision is undertaken. The council advocates for relaxing toll manufacturing restrictions, including impractical 60-day limits and vendor detail requirements.
Furthermore, the PTC has requested the immediate withdrawal of the exclusion clause affecting cotton, cotton yarn, and grey cloth from the EFS. The council maintains that these amendments, if implemented, will critically damage Pakistan's textile and apparel exports.
[1] The News International, "PTC Slams FBR for EFS Amendments", July 30, 2025. [2] Dawn, "PTC Demands EFS Amendments Review", July 31, 2025. [3] Business Recorder, "PTC Objects to EFS Amendments", August 1, 2025. [4] The Express Tribune, "PTC: EFS Amendments Harm Exports", August 2, 2025.
- The PTC has expressed concerns that the new Finance Ministry amendments to the Export Facilitation Scheme (EFS) could potentially harm the Finance sector of the textile industry, as these changes introduce strict conditions and exclude key raw materials like cotton and yarn, which are critical for exports.
- Fawad Anwar, Chairman of the Pakistan Textile Council (PTC), has advocated for a review of the EFS amendments, citing the potential negative impact on the industry's export value and competitiveness, especially in the current context of global economic uncertainty and rising protectionism.
