KARACHI: The President of the Karachi Chamber of Commerce and Industry (KCCI), Jawed Bilwani, has urged the government to maintain and strengthen the Export Finance Scheme (EFS) to sustain Pakistan's export-led growth. Emphasizing its importance, Bilwani called for reinstating local purchases under specific regulations to boost liquidity, competitiveness, and formalization throughout the value chain, a recommendation previously made by an Inter-Ministerial Committee.

Bilwani highlighted that despite high regional costs for electricity, gas, and other essentials, Pakistan's export resilience owes much to EFS support. He underscored that maintaining and expanding the scheme is crucial for export competitiveness.

EFS, developed through consultations, simplifies export procedures, consolidating prior schemes into one and reducing documentation through automation. This approach, integrated with systems like WeBOC and Pakistan Single Window, ensures compliance and transparency.

The scheme has been pivotal in easing liquidity for exporters, especially in the textile and apparel sectors, where imported yarns and fabrics are crucial for meeting international standards. Bilwani noted that local alternatives are often costly and inferior, highlighting the competitive edge provided by imported materials.

He noted that the apparel sector achieves significant value addition on exports, requiring consistent access to quality raw materials. He compared Pakistan's model to Bangladesh and Vietnam, which rely on imported materials for their textile sectors.

However, Bilwani expressed concern over recent policy changes disrupting the balance between imported and local materials. He pointed out that current tax policies discourage local sourcing, affecting domestic SMEs.

In light of the International Monetary Fund's concerns, Bilwani suggested a balanced approach, like a negative list for high-risk imports, to maintain the scheme's framework. He also reiterated the need for real-time audits and digital monitoring to enhance the scheme's efficiency and credibility.