Wednesday June 19, 2024

Yarn traders raise alarm bells over blatant misuse of EFS

By News Desk
May 29, 2024
In this image, a man can be seen working in a textile factory in Pakistan. — AFP/File
In this image, a man can be seen working in a textile factory in Pakistan. — AFP/File

KARACHI: The Yarn Brokers, Traders & Importers Association of Karachi (YBTIAK) once pleaded with the authorities to crack down on the misuse of the Export Finance Scheme (EFS) for imported polyester yarn, which was denting their competitiveness, causing huge losses, a statement said on Tuesday.

Ringing alarm bells, YBTIAK claimed that commercially imported polyester yarn was being sold in local markets under the EFS, a programme designed to support exports. This practice, they argue, is dealing significant financial blows to legitimate importers who rely on the scheme for competitive pricing, according to the statement.

Javed Bhuri, General Secretary of the YBTIAK Karachi, raised this issue with the authorities after being prompted by a complaint from Munaf Cheena, a member, along with the Chairman of the Pakistan Yarn Merchants Association (PYMA) Punjab KP Zone and the Chairman of PYMA Sindh Balochistan Zone.

He wrote letters to the Directorate of Intelligence (Inland Revenue) Islamabad, Member Customs Federal Board of Revenue (FBR), and Member IRFBR, requesting their intervention to prevent this malpractice.

The statement quoted Javed Bhuri, General Secretary of YBTIAK, as saying that the sale of imported yarn in the domestic market under EFS was a blatant misuse of the scheme. This is leading to unfair competition and severe financial losses for our members who import yarn commercially, he said.

YBTIAK called for “effective measures” to prevent this misuse, emphasising the potential harm to the polyester yarn trade if the issue persisted. The statement did not specify the exact nature of the measures demanded by the yarn traders.