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Business Recorder
2 hours ago
- Business
- Business Recorder
‘ST imposition under EFS will sabotage export industry'
FAISALABAD: Addressing at a press conference, Senior Vice Chairman of the Pakistan Hosiery Manufacturers & Exporters Association (PHMA), Hazar Khan, warned that the imposition of sales tax at the import stage under the Export Facilitation Scheme (EFS) will sabotage the export industry. He cautioned that the government's move to impose sales tax at the import stage within the EFS framework would be another severe blow to apparel and textile exporters, who are already under immense financial pressure. He emphasised that the collection and refund process of sales tax is not only inefficient but also provides opportunities for corruption through fake refunds, while genuine exporters face long delays in getting their refunds. The value-added textile sector strongly believes that the EFS should be continued in its original form as it existed prior to Budget 2024-25, to ensure liquidity and transparency in the value chain. This stance is also supported by the inter-ministerial committee, led by the federal minister for Planning, under the directives of the prime minister. Chaudhry Salamat Ali, Group Leader of PHMA, stated that the EFS was developed through consultation with stakeholders and has streamlined, digitised, and improved the efficiency of the export process. Fully automated under WeBOC and PSW systems, the scheme has provided financial relief to exporters. He highlighted that APTMA is using outdated machinery with poor quality and high costs, while value-added garment production requires yarn that meets international standards. The government allowed yarn imports under EFS, which is a key reason for the increase in exports. Arif Ihsan Malik, former Chairman of APBUMA, mentioned that duty-free yarn imports have long been allowed under various SROs, similar to policies followed by Bangladesh, Vietnam, and other countries. He refuted APTMA's claim that 100 of their mills have shut down, calling it baseless and demanding that they share accurate data with the media. He also advocated for allowing commercial importers to bring in yarn under EFS so that small and medium-sized exporters can benefit as well. Mian Kashif Zia, former chairman of PHMA, said that the apparel industries in Bangladesh and Vietnam also rely on imported raw materials and their governments run similar facilitation schemes. Imposing sales tax under EFS would defeat its core purpose. Mian Farrukh Iqbal, former Chairman of PHMA, stated that the government has set a $60 billion export target under the 'Uraan' programme, which will be at risk if the EFS is withdrawn. He further claimed that APTMA produces substandard yarn which fails to meet international expectations, thus compromising the quality of garments made from it. Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Business
- Business Recorder
Removal of road obstructions in Sindh demanded
FAISALABAD: All major textile associations in Faisalabad, along with the Faisalabad Chamber of Commerce and Industry (FCCI), have raised serious concerns over the ongoing road blockages in Sindh, which are severely disrupting cargo traffic and threatening the export sector. Hazar Khan, Senior Vice Chairman of the Pakistan Hosiery Manufacturers & Exporters Association (PHMA) addressing a press conference here Wednesday, said that the road closures due to protests over canal issues have led to the halting of hundreds of containers. This disruption not only delays the timely delivery of products to international markets but also jeopardises the trust of foreign buyers in Pakistani exporters. He further highlighted the challenges faced in receiving raw materials for manufacturing, leading to operational difficulties in industrial units. However, Rehan Naseem Bhara, President Faisalabad Chamber of Commerce and Industry (FCCI), emphasised that the blockage of roads is preventing export containers from reaching ports, resulting in delays of up to one to two months. He appealed to Prime Minister Shehbaz Sharif and Chief Minister of Sindh Murad Ali Shah to address the issue promptly to prevent further economic damage. Mian Farukh Iqbal, former Chairman PHMA, mentioned that after receiving relief in electricity tariffs, they assured international buyers of the resumption of production processes. However, the current road blockages are hindering exports. He urged the government to resolve the issue swiftly to achieve the 'Uraan' program's target of $60 billion in exports over the next five years. Rana Altaf Ahmed, former Senior Vice Chairman PHMA said this issue must be resolved immediately to avoid having to ship our consignments by air. Syed Zia Alamdar Hussain, former President of the Faisalabad Chamber of Commerce added we are not part of any political agenda. Our only concern is political and economic stability. The government must take urgent action to end the road blockages so that the business and trade ecosystem can return to normal. Waheed Khaliq Ramey Chairman Power Looms Owner association said that this issue is not limited to the export sector alone — the local industry is also being severely affected. 'I respectfully urge the President of Pakistan Asif Ali Zardari, whose party has governed Sindh for the past sixteen years, to intervene and resolve this matter promptly.' Mian Kashif Zia, former Chairman PHMA, said that the news of these protests is damaging Pakistan's image internationally. Our buyers are now reluctant to place new orders. Copyright Business Recorder, 2025
