PCDMA calls for crackdown on misuse of EFS imports

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The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has urged enhanced monitoring to prevent the misuse of dyes and chemicals imported under the Export Facilitation Scheme (EFS). In a letter to the Federal Board of Revenue (FBR), PCDMA Chairman Salim Valimuhammad proposed a digital tracking system to oversee the movement and use of imported materials. The association expressed concern about rising imports of textile dyes and chemicals, particularly reactive dyes, without a corresponding rise in exports. While supporting government initiatives to facilitate exporters, PCDMA emphasized the need for effective monitoring to prevent the diversion of materials into the domestic market.

Salim Valimuhammad highlighted that dyes and chemicals constitute 25–30% of the processing cost for textile products. The PCDMA aimed for a transparent monitoring mechanism, linking EFS imports to actual production and exports, and proposed consumption norms to accommodate industry variations. Additionally, the association recommended risk-based audits and stock verification for discrepancies. It suggested implementing the new monitoring system initially for reactive dyes as a pilot exercise. While PCDMA supports the government’s export goals, it stressed that EFS benefits should reach legitimate beneficiaries, safeguard government revenue, and ensure a fair business environment. The association is also willing to share industry insights with relevant authorities.

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