Pakistan Chemicals & Dyes Merchants Association (PCDMA) has voiced serious concern over the misuse of the Export Facilitation Scheme (EFS), cautioning that duty-free imports are being diverted into the domestic market, resulting in heavy revenue losses and undermining compliant commercial trade.

In a detailed analysis of imports under HS Codes 28–39, PCDMA Chairman Salim Valimuhammad revealed that EFS imports have surged to nearly PKR 470 billion — about 70 per cent higher than commercial imports valued at PKR 275bn. “This disproportionate growth is inconsistent with genuine export-linked consumption and strongly suggests leakage of EFS goods into the local market,” he observed.

The study highlights stark examples such as polymers (HS Code 3901), where EFS imports stood at PKR 72.9bn compared to commercial imports of PKR 38.7bn. According to him, this trend reflects systemic misuse of the scheme, resulting in an estimated revenue loss of PKR 115–140bn.

Salim Valimuhammad urged the government to initiate immediate post-clearance audits, enforce mandatory reconciliation of imports with actual exports, and introduce HS-code-wise caps linked to exporters’ track records. He further called for digital integration of import, production and export data to ensure transparency.

“Without tighter controls, the EFS risks becoming a tax-free backdoor for domestic sales, distorting prices and crowding out legitimate trade,” PCDMA chief cautioned.