Carpet exporters urge tariff relief to save industry

The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has appealed to Federal Minister for Commerce Jam Kamal Khan for urgent relief from customs tariffs threatening the survival of the sector, according to a press release issued Thursday.

A delegation led by Patron-in-Chief Abdul Latif Malik, Senior Vice Chairman Usman Ashraf, and Vice Chairman Riaz Ahmed highlighted the challenges crippling the industry and sought immediate government intervention.

During the meeting, Abdul Latif Malik detailed the intricate production process of Pakistani carpets, where raw materials are sent to Afghanistan, and unfinished carpets are brought back to Pakistan for final processing before being exported globally. Despite the fact that 99% of these carpets being exported, manufacturers are unable to avail the benefit of Federal Board of Revenue (FBR) customs duty exemptions, depriving them of critical export incentives.

The PCMEA representatives emphasised that high customs duties at the Afghan-Torkham border are forcing many small and medium-sized enterprises (SMEs) to shut down. "To save this sector and ensure its growth, it is essential to make semi-finished carpets duty-free," Malik urged, stressing the need for government support to sustain the industry.

In response, Minister Jam Kamal Khan assured the delegation of his commitment to addressing their concerns. He acknowledged the sector's potential to enhance exports and underlined the importance of promoting "Made in Pakistan" products. The minister also stressed the need to address intellectual property challenges, such as securing patent protections for Pakistani carpets, to boost global recognition.

To resolve the industry's issues, Khan proposed convening a meeting with the FBR and other stakeholders soon in the near future to explore solutions together to address the sector's concerns. He reiterated his dedication to fostering the growth of the carpet manufacturing industry and helping SMEs thrive.

The PCMEA expressed hope that timely government intervention would relieve manufacturers and restore the sector's competitive edge in international markets.