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Apparel exporters warn against EFS distortion as it’s lifeline for SMEs

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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 PHMA Lahore office on Tuesday, the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) and the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) demanded urgent action to restore the Export Facilitation Scheme (EFS) in its original spirit.

The leadership jointly called on Prime Minister Shehbaz Sharif to 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 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.

 

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