The textile industry has welcomed a Federal Board of Revenue (FBR) crackdown on importers misdeclaring fabric to obtain duty and tax exemptions under the Export Facilitation Scheme (EFS).
The All Pakistan Textile Mills Association (APTMA) said Pakistan Customs has started stricter physical inspections and laboratory testing of fabric consignments imported under the scheme.
APTMA said greige fabric was removed from the EFS in August 2025, but such imports had continued through alleged misdeclaration, depriving the government of revenue and hurting local fabric manufacturers.
According to APTMA, laboratory tests of some consignments reportedly found food colouring instead of proper dyeing, leading Customs to record violations.
The association urged the FBR to apply physical inspections and laboratory testing to all fabric consignments imported under the EFS across the country, including through dry ports.
APTMA also called for verification of importers’ manufacturing facilities. It said some firms allegedly lack the machinery needed to process fabric and may instead be diverting imported material into the domestic market.
The association urged authorities to suspend the licenses of companies found violating the rules and initiate legal proceedings where required.
APTMA Chairman Kamran Arshad said continued enforcement was necessary to prevent the EFS from being misused for tax evasion and to protect local manufacturers that have invested in production and employment.
The association said it supports further FBR and Customs action to ensure the scheme remains focused on genuine export-related activity.
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