The Federal Board of Revenue (FBR) and Pakistan Customs have stepped up checks on fabric imports after concerns over the misuse of the Export Facilitation Scheme (EFS).

The All Pakistan Textile Mills Association (APTMA) welcomed the enforcement action, saying importers had allegedly been misdeclaring greige fabric to obtain exemptions from customs duty and sales tax.

APTMA said greige fabric was excluded from the EFS in August 2025 through SRO 1435(I)/2025. Despite this, it claimed such fabric continued to enter Pakistan under the scheme through incorrect declarations.

Customs officials are now conducting physical inspections and laboratory testing of fabric consignments to verify their actual description. APTMA said tests in some cases reportedly found food colouring instead of proper dyeing, resulting in contraventions.

The association has called for physical inspection and laboratory testing of all fabric consignments imported under the EFS, including those processed through dry ports.

APTMA also urged authorities to verify the manufacturing facilities of importers using the scheme. It alleged that some importers may not have the machinery required for fabric processing and could be diverting imported material to the local market.

The association called for suspension of licenses and legal action where violations are established.

APTMA said misuse of the EFS causes revenue losses for the government and puts local fabric manufacturers at a disadvantage.

It urged the FBR to continue enforcement and ensure the export facilitation scheme is used for its intended purpose.