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Exports

Preserving Export Competitiveness: Karachi Chamber Chief Advocates for Continuation of Export Finance Scheme

Strategic Insights

— 2 min read

Karachi President Jawed Bilwani emphasized the crucial role of the Export Finance Scheme (EFS) in sustaining Pakistan's exports, citing its resilience in the face of regional costs and exchange rates. Despite these challenges, the country's exports have shown remarkable resilience, largely due to the support provided by EFS. Bilwani highlighted the scheme's strategic development through broad-based consultation, its simplification of export procedures, and its integration with WeBOC and Pakistan Single Window (PSW).

Key Takeaways:

  • The Export Finance Scheme (EFS) has played a crucial role in sustaining Pakistan's exports, enabling a more progressive and accessible export environment.
  • EFS has consolidated all previous schemes under one umbrella, minimized documentation requirements, and facilitated ease of doing business through a fully automated system integrated with WeBOC and Pakistan Single Window (PSW).
  • The scheme includes real-time audits and end-to-end traceability to regulate compliance costs and ensure transparency.
  • EFS has eased liquidity pressures for exporters, particularly in the value-added textile and apparel sector, where access to input goods is vital for sustaining production and delivery timelines.
  • The import of specialized yarns and fabrics under EFS has been instrumental in enabling exporters to meet international quality standards, giving them a competitive edge in global markets.
  • The value-added apparel sector achieves up to 70 percent value addition on export goods and requires uninterrupted access to high-quality raw materials.
  • Countries like Bangladesh and Vietnam are reliant on imported raw materials for their export-oriented textile sectors, and their success is proof of the effectiveness of such models when supported by robust facilitation mechanisms.
  • Policy changes announced in the last federal budget have disrupted the balance between imported and local raw materials, creating a structural imbalance and discouraging local sourcing.

Statistics:

  • Pakistan's exports have shown remarkable resilience under the support of EFS, despite regional costs of electricity, gas, water, and interest rates.
  • The EFS scheme has consolidated all previous schemes under one umbrella, minimizing documentation requirements and facilitating ease of doing business.
  • The scheme includes real-time audits and end-to-end traceability to regulate compliance costs and ensure transparency.
  • The value-added apparel sector achieves up to 70 percent value addition on export goods and requires uninterrupted access to high-quality raw materials.
  • 70% value addition on export goods is a strategic objective for the value-added apparel sector under the EFS scheme.

Sources:

  • Press release from the Karachi Chamber of Commerce and Industry (KCCI), citing Jawed Bilwani, President, Karachi Chamber of Commerce and Industry (KCCI).
  • No additional sources.

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