‘Misuse of Export Facilitation Scheme threatens domestic yarn industry’

KARACHI: Chairman of the All Pakistan Textile Mills Association (APTMA), Asif Inam, has raised concerns over the misuse of the Export Facilitation Scheme (EFS), warning that it threatens domestic yarn manufacturing and could lead to widespread unemployment in the textile sector.

He emphasized that textile mills are being forced to shut down due to the influx of duty-free imports under the EFS, posing a risk to local industries.

Inam called for immediate action to protect the economy and the domestic textile sector from the detrimental effects of EFS misuse, urging the government to intervene.

Despite these concerns, Pakistan’s textile exports saw a 29.4% increase in August 2024, marking the highest level since June 2022, with $1.644 billion in exports compared to $1.271 billion in July. The textile exports for August 2024 were 12.8% higher compared to the same period in 2023.

Earlier to this, APTMA had requested a discount on electricity tariffs, citing high energy costs as a major obstacle to export competitiveness. A reduction in tariffs is seen as essential to maintaining the industry’s global market share.