LAHORE: The value-added textile sector has once again raised a unified voice to safeguard the backbone of Pakistan’s export economy—the small and medium enterprises (SMEs) of the apparel industry.

In a joint press conference held at the PHMA (Pakistan Hosiery Manufacturers and Exporters Association) Lahore office on Tuesday, the PHMA and the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) office-bearers demanded urgent action to restore the Export Facilitation Scheme (EFS) in its original spirit.

They demanded that Prime Minister Shehbaz Sharif intervene and halt policy shifts that threaten to dismantle the EFS. They warned that ongoing bureaucratic distortions—compounded by lobbying from the spinning sector for new tariffs—are pushing the SME-based apparel export industry toward a serious crisis.

PHMA Zonal Chairman Abdul Hameed and PRGMEA Regional Chairman Dr. Ayyazuddin said the EFS was introduced to allow duty-free import of raw materials for exporters, giving Pakistan’s apparel sector a competitive edge. “Instead of simplifying exports, EFS has become bogged down by manual procedures and is now under threat from proposed tariff changes,” said Abdul Hameed.

Dr Ayyazuddin stressed that SMEs, which form the bulk of the value-added industry, cannot survive under such conditions. “We operate on thin margins and short timelines. EFS was a breakthrough for us, but now it’s being reshaped to serve upstream interests. These tariffs, reportedly pushed by the spinners’ lobby, protect a narrow segment at the cost of Pakistan’s largest job-creating export base.”

Leaders expressed concern over reports of potential duties on raw materials like synthetic yarns, man-made fibres, technical fabrics, and accessories, none of which are produced locally.

“Any tariff on items under HS Chapters 54, 55, and 96 is unacceptable,” said Abdul Hameed. “These are essential production inputs. Taxing them means taxing exports at the start.”

Speaking virtually, former PRGMEA chairman Ijaz Khokhar said the entire value chain had welcomed EFS as a much-needed correction in policy. “But distortions are creeping in. The original vision of a seamless, transparent system is being hijacked,” he said.

Published in Dawn, June 5th, 2025