PRGMEA sounds alarm over EFS changes, tax shift, US tariffs

LAHORE: Minister for Planning Prof Ahsan Iqbal and Minister for Defence Khawaja Muhammad Asif have pledged to raise exporters’ concerns at the highest levels of government. Addressing a high-level exporters’ convention hosted by the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) in Sialkot, the ministers reaffirmed their commitment to supporting the industry amid growing challenges.

The event saw strong representation from industry associations, including PHMA, PSGMEA, PGMEA, SIMAP, PLGMEA, and the Sialkot Chamber of Commerce and Industry (SCCI).

Prof Iqbal acknowledged Pakistan’s export figures -- currently around $32 billion -- are significantly behind regional peers such as Bangladesh, India and Vietnam. “We need a unified, export-led growth strategy. Cities like Sialkot, with their entrepreneurial spirit and globally recognised products, must lead the charge,” he said. He underscored that economic revival depends on fostering a stable, business-friendly environment and reducing the cost of doing business to regain Pakistan’s competitive edge.

Asif agreed and shared that the government would prioritise the concerns of Sialkot’s exporters. He noted that abrupt policy changes and increasing tax burdens were undermining productivity. “Sialkot’s SMEs are the backbone of our export economy. We will not allow them to collapse under bureaucratic strain,” he said, adding that tax refunds and related issues would be taken up at the highest level to ensure a supportive business environment.

Ijaz A Khokhar, former central chairperson of the PRGMEA, raised serious concerns over recent amendments to the export facilitation scheme (EFS), particularly changes affecting temporary imports for re-export. He warned that reduced utilisation periods and new bank guarantee requirements would disproportionately affect SMEs already struggling with tight margins.

PRGMEA Executive Member Ansar Aziz stressed the need for targeted support mechanisms and low-cost financing for SMEs to help them cope with growing economic pressure. “Our SMEs drive innovation and job creation. Without tangible support, we risk losing this critical foundation,” he warned.

Former PRGMEA Chairperson Sohail A Sheikh criticised the abrupt transition from the final tax regime (FTR) to the normal tax regime (NTR), saying it introduced unpredictability in tax liabilities and increased compliance burdens. Both PRGMEA leaders voiced alarm over the newly imposed, now-on-pause 29 per cent reciprocal tariffs by the US on Pakistani exports. They reported growing buyer hesitation, shipment delays and rising order cancellations.