Pakistan Cotton Industry Calls for Review of Fabric Imports Under Export Facilitation Scheme
Pakistan’s cotton industry has called for a detailed review of fabric imports under the Export Facilitation Scheme (EFS), expressing concerns that allegedly under-invoiced imports from China are affecting the domestic textile sector.
Chairman of the Cotton Ginners Forum, Ihsanul Haq, said the industry is already facing several challenges, including lower cotton production, rising energy costs, higher taxation, and expensive financing. He stated that, according to industry concerns, similar issues previously reported in cotton yarn imports are now being observed in fabric imports under the EFS.
Haq urged the federal government to conduct a comprehensive audit of imports made under the Export Facilitation Scheme, including cotton, yarn, and fabric, to ensure compliance with applicable regulations and to support the country’s cotton and textile industries.
According to him, the All Pakistan Textile Mills Association (APTMA) has submitted information to the Federal Board of Revenue (FBR) regarding imports of cotton yarn under the scheme. He said the industry hopes the relevant authorities will review the available data as part of their assessment.
The Cotton Ginners Forum also highlighted broader challenges facing the cotton sector. Haq noted that changing crop patterns, including increased sugarcane cultivation in traditional cotton-growing regions, along with concerns about cotton quality, have contributed to higher imports of raw cotton from countries such as the United States and Brazil.
In addition, the forum requested that the government review the sales tax structure for the ginning industry. Industry representatives believe that a balanced tax framework could help improve documentation, strengthen the formal cotton trade, and support Pakistan’s competitiveness in international markets.
Separately, market participants reported that recent rainfall slowed trading activity during the week. Cotton prices declined by approximately Rs. 300 to Rs. 500 per maund as fresh arrivals entered the market. Traders also noted that forecasts of additional rainfall and possible flooding could influence crop conditions and market activity in the coming weeks.
The industry has called for continued dialogue between stakeholders and policymakers to address these challenges and support the long-term growth of Pakistan’s cotton and textile sectors.
