The talks fail between the All Pakistan Textile Mills Association (APTMA) and the government on the revival of the Export Facilitation Scheme as textile sectors calls for inclusion of cotton yarn and fabrics into negative list of EFS Scheme, reported 24NewsHD TV Channel.
Chairman APTMA Kamran Arshad said the government refused to remove the 18 percent sales tax on local cotton supplies, which was aimed at providing a level playing field between imported and local cotton. He added that the textile industry can reduce the trade deficit with the United States.
Addressing a press conference in Islamabad, APTMA Chairman said that the government refused to restore the EFS scheme. In 2024, the government abolished the EFS scheme for the local value chain.
The EFS scheme has favored imports excessively. Domestic textile exports have not increased for two years. Cotton imports have increased manifold. 120 spinning mills and 800 out of 1,200 ginning factories have closed.
Chairman APTMA said that the government has made imported cotton duty-free and imposed 18% sales tax on local cotton. The government should not provide dumping grounds for foreign products. It has proposed to include cotton yarn and fabric in the negative list.
Chairman APTMA said that Pakistan has an opportunity to increase its exports with the US. Cotton worth 800 million dollars was imported from the US last year, while this year Pakistan will import cotton worth more than 2 billion dollars from the US.
Kamran Arshad said that the textile industry can reduce the trade deficit with the US provided that the government accepts textile sector’s demands.