Carpet Exporters Call for Government Action on High Tariffs

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Carpet

The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has urged the government to intervene and address the rising customs tariffs that are threatening the survival of the carpet industry. A delegation from the PCMEA, 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 present their concerns and request relief.

During the meeting, Abdul Latif Malik outlined the complex production process for Pakistani carpets, which involves raw materials being sent to Afghanistan for initial processing, with semi-finished carpets returned to Pakistan for final furnishing before being exported.

Despite 99% of these carpets being exported, the sector has been unable to benefit from customs duty exemptions offered by the Federal Board of Revenue (FBR), significantly hindering their competitiveness in global markets.

Malik emphasized that the high customs duties at the Afghan-Torkham border were causing immense financial strain on small and medium-sized enterprises (SMEs), many of which are on the verge of shutting down. He called for the removal of duties on semi-finished carpets, stating that government support is essential to ensure the sector’s sustainability.

In response, Minister Jam Kamal Khan assured the PCMEA of his full support, acknowledging the industry’s potential to boost exports. He emphasized the need to promote “Made in Pakistan” products and address intellectual property issues, including patent protections for Pakistani carpets, to enhance their recognition globally.

The minister proposed convening a meeting with the FBR and other stakeholders to discuss potential solutions and resolve the sector’s challenges. The PCMEA remains hopeful that the government’s timely intervention will restore competitiveness and enable the industry to thrive once again.

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