Customs tariffs threaten carpet industry, exporters ask for govt intervention

ISLAMABAD: The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has urged Commerce Minister Jam Kamal Khan to step in and provide immediate relief from customs tariffs that are threatening the carpet industry’s survival. The appeal was revealed in a press release issued on Thursday.

According to Express Tribune, a delegation, led by Patron-in-Chief Abdul Latif Malik, along with Senior Vice Chairman Usman Ashraf and Vice Chairman Riaz Ahmed, highlighted the pressing issues crippling the sector.

They emphasised the need for swift government support to save the industry.
Malik explained the intricate process involved in making Pakistani carpets. Raw materials are sent to Afghanistan, where carpets are partially made, then brought back to Pakistan for final processing before being exported worldwide.

Despite nearly all of these carpets being exported, manufacturers aren’t benefiting from the Federal Board of Revenue’s (FBR) customs duty exemptions, losing out on vital export incentives.

The delegation pointed out that steep customs duties at the Afghan-Torkham border have become a major obstacle, forcing many small and medium-sized businesses to close down. Malik called on the government to exempt semi-finished carpets from duties, which he believes is key to saving the sector and enabling it to grow.

Khan expressed commitment to resolving the issue and acknowledged potential of the industry to boost exports. He underscored need for intellectual property protections such as patents to enhance the global reputation of carpets made in Pakistan.

Khan proposed a meeting with the FBR and other stakeholders to find a solution to the industry’s challenges. He reassured the delegation of his dedication to supporting the carpet manufacturing sector and helping small businesses succeed.

The PCMEA is hopeful that the government’s intervention will help manufacturers regain their footing and strengthen Pakistan’s position in the international carpet market.

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