KARACHI: The All Pakistan Textile Mills Association (APTMA) has formally submitted detailed objections to the Federal Board of Revenue (FBR) against Draft SRO 2488(I)/2025, warning that the proposed duty-free and zero-rated import facility at Sost Dry Port could cause material injury to Pakistan’s domestic textile industry.
In its written comments addressed to the FBR’s Member (Customs Policy), APTMA opposed the inclusion of textile-related goods, particularly fabrics, within the scope of the draft SRO issued on December 24, 2025.
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It said Pakistan’s upstream textile segments are already under severe stress due to persistently high energy tariffs, elevated tax burdens, costly financing, and extensive compliance requirements.
Allowing duty-free and zero-rated imports of critical textile inputs would further weaken domestic manufacturers who are operating under structurally higher costs. The association noted that local textile markets are already facing significant pressure from dumped imports, especially from China, which do not reflect fair market pricing.
It warned that additional concessions under the proposed mechanism would distort market dynamics, undermine domestic production, and deepen losses for compliant, tax-paying manufacturers.
It also raised concerns over enforcement weaknesses, pointing to past experiences under similar concessionary regimes, including the Export Facilitation Scheme.
According to APTMA, goods imported under such facilities were meant to remain geographically restricted but frequently leaked into domestic markets across the country. These leakages have become systemic while enforcement actions have remained weak and ineffective, allowing unfair competition to persist.
APTMA concluded that the inclusion of textile inputs under Draft SRO 2488(I)/2025 would directly harm local value addition, disrupt upstream textile operations, and threaten employment at a time when the sector is already struggling for survival.
