The Pakistan Textile Council (PTC) has written to Prime Minister Shehbaz Sharif, urging the government to retain the Export Facilitation Scheme (EFS) for genuine exporters and opposing further restrictions on yarn and fabric categories covered under the scheme.

PTC Chairman Fawad Anwar warned that additional restrictions could significantly harm Pakistan’s exports, undermine the international competitiveness of textile products, discourage new investment and weaken the confidence of global buyers.

The council has specifically called on the government not to exclude yarn and fabric falling under Chapters 52 and 55 of the Customs Tariff from the scheme. According to the PTC, the government had already excluded raw cotton, cotton yarn and grey fabric from the EFS in 2025.

The council highlighted the growing global demand for synthetic-fibre-based textile products, noting that synthetic fibres accounted for 69 percent of global textile fibre production in 2024, compared with 19 percent for cotton. Products made from synthetic fibres also represent approximately 63 percent of global textile and apparel trade, while their share in Pakistan’s textile and apparel exports stands at only 12 percent.

The PTC pointed to Bangladesh’s target of increasing the share of synthetic-fibre-based garments in its exports to 40 percent by 2030, stressing the need for Pakistan to remain competitive in international markets.

According to the council, Pakistani exporters rely on imported yarn and fabric to meet the specifications and requirements of international buyers. Additional taxes on imported raw materials would increase production costs and add to the financial difficulties faced by exporters.

While expressing full support for government efforts to prevent the misuse of the Export Facilitation Scheme and curb illegal activities, the PTC maintained that genuine exporters should not be penalised for the misconduct of a few individuals. It urged the Federal Board of Revenue (FBR) and Pakistan Customs to strengthen monitoring and enforcement against unlawful practices.

The council also called for the restoration of zero-rating on locally sourced raw materials supplied under the EFS to protect domestic suppliers.

Describing textiles as Pakistan’s largest export sector, the PTC emphasised that access to raw materials at competitive prices is essential for sustaining export growth. It urged the prime minister to intervene promptly and protect the interests of Pakistani exporters.