The Federal Board of Revenue (FBR) has assured textile exporters that it will accelerate the processing of export consignments, expedite duty drawback payments, and address procedural hurdles under the Export Facilitation Scheme (EFS) following a high-level meeting with industry representatives in Lahore.
The commitment came during a meeting between an FBR special committee and members of the All Pakistan Textile Mills Association (APTMA) at the association’s Lahore office, where exporters highlighted a series of operational and regulatory challenges affecting export activities.
The discussions focused on improving the effectiveness of the Export Facilitation Scheme, a key initiative aimed at supporting Pakistan’s export-oriented industries by simplifying customs procedures and facilitating access to imported inputs.
Senior FBR Officials Meet Textile Exporters
The FBR committee comprised Chief Collector Exports Mohsin Rafiq, Chief Collector Customs Lahore Naveed Elahi, and Collector Customs Lahore Salman Afzal.
The delegation was welcomed by APTMA Chairman Kamran Arshad, Secretary General Raza Baqir, and senior representatives from major textile groups including Comfort Knitwear, Eastern Group, Nagina Group, and Resham Textile.
A large number of textile exporters also attended the meeting and shared their concerns regarding delays, procedural inefficiencies, and implementation issues under the Export Facilitation Scheme.
The session provided an opportunity for direct engagement between customs authorities and exporters, allowing both sides to discuss practical solutions for improving the scheme’s performance.
FBR Launches Review of Export Facilitation Scheme
Chief Collector Exports Mohsin Rafiq informed participants that the FBR has deployed senior officers to engage directly with exporters’ associations across the country.
According to him, the purpose of this initiative is to identify procedural and systemic shortcomings in the Export Facilitation Scheme and recommend legislative as well as administrative reforms where necessary.
He emphasized that exporter feedback will play a crucial role in improving the scheme and urged APTMA members to formally submit all outstanding issues to the committee for detailed review and resolution.
The move reflects the tax authority’s efforts to strengthen communication with the export sector and ensure that the scheme continues to support industrial growth and export competitiveness.
Online Renewals to Be Processed Within 24 Hours
One of the key announcements made during the meeting came from Chief Collector Customs Lahore Naveed Elahi.
He revealed that authorization renewals under the Export Facilitation Scheme will now be processed online and completed within 24 hours after the submission of the required documents.
The decision is expected to significantly reduce delays that exporters have repeatedly identified as a major operational challenge.
Elahi also disclosed that the customs department is considering introducing an auto-renewal mechanism based on exporters’ historical performance.
According to officials, the proposed system is currently under review and may be launched in the near future. If implemented, it could further streamline administrative processes and reduce the compliance burden on exporters.
Customs Officials Acknowledge Exporters’ Concerns
During the meeting, customs officials acknowledged that many of the concerns raised by APTMA members were genuine.
Officials assured participants that efforts would be made to address these issues as quickly as possible and improve the overall efficiency of the Export Facilitation Scheme.
The acknowledgment was welcomed by exporters, who have long called for greater responsiveness from regulatory authorities regarding operational challenges affecting export performance.
Industry representatives stressed that timely resolution of these issues is essential for maintaining Pakistan’s competitiveness in international markets.
APTMA Highlights Delays and Administrative Challenges
APTMA Chairman Kamran Arshad presented a detailed overview of the industry’s concerns regarding the implementation of the Export Facilitation Scheme.
Among the key issues highlighted were unusually long delays in EFS authorization renewals and what exporters described as the unlawful referral of cases to the Input Output Coefficient Organization (IOCO) for capacity redetermination.
Arshad also pointed to difficulties faced by indirect exporters when attempting to offload goods manufactured under the EFS framework.
According to exporters, these procedural obstacles have increased compliance costs and created uncertainty for businesses operating within the export supply chain.
Long-Pending Audits and Financial Delays Raise Concerns
The textile industry also raised concerns about delays related to long-pending audits and the release of post-dated cheques and bank guarantees.
Exporters argued that these delays negatively impact cash flow and create unnecessary administrative burdens for businesses already facing intense competition in international markets.
In addition, APTMA highlighted a substantial backlog of Customs Reconciliation Forms (CRFs) pending with the Customs Automation Department.
Industry representatives urged authorities to clear the backlog as soon as possible to improve operational efficiency and reduce processing times.
Call to End Parallel Manual System
A major concern raised during the meeting involved the continued operation of a parallel manual system despite the existence of a fully automated Export Facilitation Scheme platform.
Kamran Arshad argued that maintaining both systems simultaneously creates duplication, confusion, and inefficiencies.
He urged customs authorities to discontinue the manual process immediately and rely entirely on the automated platform to ensure transparency, consistency, and faster service delivery.
Exporters believe that full digitization will reduce administrative delays and help improve compliance management across the sector.
Industry Seeks Fair Application of Tax and Valuation Rules
APTMA also expressed concerns regarding the application of taxes, duties, and valuation rulings under the scheme.
According to Arshad, taxes and duties continue to be reflected at statutory rates instead of effective rates despite specific rulings issued by the FBR.
He further claimed that valuation rulings are being applied to Export Facilitation Scheme and export transactions in a manner that exporters consider inconsistent with existing regulations.
To address these concerns, APTMA proposed that Input-Output Ratios and analysis certificates should be issued automatically based on previously approved ratios and existing FBR Textile Notes.
The association argued that this measure would reduce paperwork, improve efficiency, and facilitate smoother export operations.
Export Sector Awaits Implementation of Reforms
The meeting concluded with assurances from FBR officials that the concerns raised by exporters would be reviewed and addressed through both administrative action and potential policy reforms.
With textiles remaining Pakistan’s largest export sector, industry stakeholders hope that improvements to the Export Facilitation Scheme will reduce compliance burdens, speed up export processes, and strengthen the country’s export competitiveness.
Exporters will now be watching closely to see how quickly the promised reforms are implemented and whether they translate into tangible improvements for businesses operating under the scheme.