Islamabad, November 28, 2024 – The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has called for immediate relief from customs duties that are severely hampering the survival and growth of the carpet manufacturing sector.
A delegation from the association, led by Abdul Latif Malik (Patron In-Chief), Usman Ashraf (Senior Vice Chairman), and Riaz Ahmed (Vice Chairman), met with Federal Minister for Commerce, Jam Kamal Khan, to discuss the ongoing challenges facing the industry.
During the meeting, Abdul Latif Malik explained the intricate process involved in the production of Pakistani carpets. Raw materials are sent to Afghanistan, where carpets are initially woven, and then returned to Pakistan for final processing before being exported globally. Despite this complex supply chain and the fact that 99% of these carpets are destined for export, the sector has been unable to benefit from customs duty exemptions provided by the Federal Board of Revenue (FBR). This lack of incentives is putting immense pressure on the sector, especially small and medium-sized enterprises (SMEs), many of which are being forced to close down due to the burden of customs duties at the Afghan-Torkham border.
Abdul Latif Malik stressed that for the survival and growth of the industry, it is crucial to make semi-finished carpets duty-free. “To save this sector and ensure its future, it is essential to provide a lifeline through duty relief,” he stated, emphasizing that government support is vital to maintaining the competitiveness of Pakistan’s carpet exports.
Minister Jam Kamal Khan expressed his full support for the sector, recognizing its potential as a key driver of export growth for Pakistan. He underscored the importance of promoting “Made in Pakistan” products and addressing intellectual property concerns, particularly the protection of patents for Pakistani carpets. The Minister also proposed organizing a meeting with the FBR and other relevant stakeholders in the near future to discuss solutions and address the sector’s pressing concerns.
The PCMEA is hopeful that with timely government intervention, the sector can regain its competitive edge in international markets, enabling carpet manufacturers to thrive and contribute significantly to Pakistan’s export economy.
