Officers from various government service groups attending the 37th Senior Management Course (SMC) conducted an in-depth visit to the Pakistan Carpet Manufacturers and Exporters Association (PCMEA), gaining firsthand insights into the challenges, operations, and export potential of the country’s renowned handmade carpet industry.
The visiting delegation was warmly received by PCMEA Patron-in-Chief Abdul Latif Malik, Chairman Mian Atique-ur-Rehman, Vice Chairman Riaz Ahmed, and senior members Usman Ashraf, Major (R) Akhtar Nazir, and Saeed Khan. During the visit, PCMEA leaders delivered a comprehensive briefing covering the art of handmade carpet production, export procedures, and the role of the Carpet Training Institute in preserving artisanal skills.
Calls for Government Support to Revive a Declining Sector
Addressing the delegation, PCMEA officials raised pressing concerns regarding the decline in skilled artisan participation, largely due to limited opportunities and lack of incentives. They emphasized the urgent need for targeted skill development programs and financial incentives to retain and attract talent in the traditional craft.
“Skilled hands are leaving the trade because the industry no longer offers a sustainable livelihood. Without government-backed initiatives, we risk losing a vital piece of our cultural heritage and export strength,” said a senior member during the session.
Rising Costs and Policy Barriers Hamper Competitiveness
PCMEA leadership cited soaring raw material costs, exorbitant freight charges, and high import duties as significant obstacles to maintaining competitiveness against global rivals. They urged the government to reduce import duties, subsidize essential materials, and facilitate broader participation in international trade exhibitions.
Officials also criticized the lack of support from Pakistani embassies in promoting carpet exports, calling for the activation of commercial counsellors abroad to better represent and advocate for the industry in key markets.
Digital Adaptation and Export Policy Reforms Demanded
Recognizing shifting global market trends, PCMEA representatives appealed for government assistance in digital transformation, including the development of social media strategies, enhanced e-commerce platforms, and financial aid for digital marketing tools.
Additional grievances included the 9% penalty imposed by the State Bank of Pakistan on delayed export payment receipts—deemed a “crushing burden” by exporters—and the 25% sales tax applied to semi-processed raw materials imported via the Torkham border, far exceeding the standard 18%.
They proposed a reduction of this tax to a non-refundable 5%, a move that they believe would stabilize the industry and strengthen Pakistan’s global competitiveness.
Security and Trade Delays Highlighted
The PCMEA also pointed to recent security instability at the Torkham border, which halted imports from Afghanistan between July 2024 and January 2025, severely delaying production and export shipments.
Further recommendations included expediting export refund payments and negotiating Free Trade Agreements (FTAs) with countries such as Turkey and East Asian nations, to open new markets and ease trade restrictions.
Delegation Engagement and Tour
The visit concluded with a Q&A session, where SMC participants engaged in discussions on global competition in the handmade carpet sector, followed by a guided tour of the Carpet Training Institute. Delegates were also presented with souvenirs to commemorate their visit.
The engagement underscored the strategic importance of the handmade carpet industry to Pakistan’s cultural and economic fabric, while placing a spotlight on the critical need for policy reforms, innovation, and government support to ensure its survival and growth.
