By SKM
January 01, 2025
ISLAMABAD: Pakistan’s textile sector has issued a strong warning to the Federal Board of Revenue (FBR) over a proposed customs facilitation regime, saying duty-free and zero-rated imports of textile items could undermine domestic production, distort the market, and jeopardize thousands of jobs.
In a letter dated December 29, 2025, the All Pakistan Textile Mills Association (APTMA) expressed serious objections to draft S.R.O. 2488(I)/2025, which allows a wide range of imports to clear through Sost Dry Port duty-free. The association specifically criticized the inclusion of textile goods—particularly fabrics—saying it threatens the viability of local mills already struggling under high energy costs, taxation, expensive financing, and heavy regulatory burdens.
APTMA also raised concerns about dumping of textile products from China, which enter the domestic market at below-market prices. “Allowing further duty-free imports will worsen unfair competition and put Pakistani manufacturers at a disadvantage,” the letter warned.
The association further questioned the effectiveness of safeguards aimed at restricting imported goods to Gilgit-Baltistan, citing past experiences under similar schemes, such as the Export Facilitation Scheme, where leakages were frequent and systemic. “Goods often find their way into broader markets, causing serious distortions and hurting compliant businesses,” APTMA noted.
APTMA insisted that including textile inputs in the SRO would inflict material injury on domestic producers and called on the FBR to focus enforcement at the point of origin, protecting local industry while ensuring transparency, compliance, and fiscal integrity.
The association reaffirmed its willingness to engage with policymakers to design trade facilitation measures that support growth, exports, and employment without harming Pakistan’s largest industrial sector. Ends
