KARACHI: The Yarn Brokers, Traders & Importers Association, Karachi, has expressed serious concerns over the sale of imported polyester yarn in local markets under the Export Finance Scheme (EFS). The association pointed out that the importers of polyester yarn, who bring it in on a commercial basis, are facing severe financial losses due to the sale of this yarn in local markets. This misuse of the EFS is causing the trade of polyester yarn to decline day by day. Therefore, effective measures should be taken to prevent the misuse of EFS.
Javed Bhuri, General Secretary of the Yarn Brokers, Traders & Importers Association Karachi (Bhuri Enterprises), raised this issue following a complaint from Munaf Cheena, an active member of the association and of Maria Enterprises. Bhuri, along with the Chairman of the Pakistan Yarn Merchants Association Punjab KP Zone and the Chairman of the Pakistan Yarn Merchants Association (PYMA) Sindh Balochistan Zone, has sent letters to the Directorate of Intelligence (Inland Revenue) Islamabad, Member Customs Federal Board of Revenue (FBR), and Member IRFBR, requesting their intervention to prevent the misuse of the EFS.
Bhuri highlighted that the prices at which polyester yarn is available in local markets indicate that the yarn imported under the EFS is being sold by local intermediaries, especially in Punjab markets. Similarly, in Karachi, intermediaries are involved in the sale of imported polyester yarn, causing other importers significant financial losses.
Munaf Cheena of Maria Enterprises has been instrumental in bringing this issue to light, particularly in the Latif Cloth Market, which has garnered appreciation. This situation has severely affected the production activities of textile manufacturers like Maria Enterprises, making it difficult for them to operate their production units.
Bhuri supported Cheena’s complaint and requested the Pakistan Yarn Merchants Association to inform the relevant government agencies. He emphasized that permits issued under the EFS scheme should be allocated based on the required yarn count rather than the HS code. Furthermore, it should be mandatory to conduct lab tests and inspections of the containers exported under this scheme to ensure that the imported yarn is used as intended.