Punjab finance minister assures industries of co-operation

02 Sep, 2004

Punjab Finance Minister Sardar Husnain Bahadur Dareshak has said the provincial government would extend all-out co-operation to the industries, including the carpet industry, which provide jobs and fetch foreign exchange.
Addressing a press conference here on Wednesday, he asked the carpet manufacturers to set up units at the Sundar Industrial Estate, which has all kinds of facilities for quick disposal of solid waste besides, fighting the terrorism, the country should also wage war on poverty.
He urged the Pakistan and India's governments to set aside the differences and work for strengthening the bilateral relations for promoting trade ties between the two countries.
ACCORDING TO THE PUNJAB CM'S VISION 2020: the provincial government has planned one million jobs, but the government alone can not meet this target, adding the provincial government would create 180,000 jobs while the private sector would be responsible for creation of remaining 820,000 jobs in the province.
Speaking on this occasion, former Indian Carpet Council president O.P. Garv suggested that all the six leading hand-knotted carpet manufacturing countries-Pakistan, India, China, Iran, Nepal and Turkey - should form a Asian Carpet Council to promote their products jointly in the international market.
He said all these six countries were producing carpets of different specifications, and added that generally, there was no competition among them in terms of clientele or products.
Garv said India and China were presently engaged in price war in the field of carpets. He also suggested for holding regional carpet exhibitions in different countries of the region.
He said his government has provided a conducive environment for the carpet industry, which in turn has provided jobs to a large number of people besides, generating foreign exchange for the country.
Once Pakistan and India's carpet export volume was almost equal, but now the latter has taken the lead over Pakistan, he said, adding that India is exporting carpets two and half times more than that of Pakistan.
At that time China was new entrant in the business, but now it has surpassed both countries due to its expertise in hand-tufted carpets that has about 50 percent share in the market, Garv said, adding Iran, however, is far ahead in carpet exports because of devaluation of its currency, which was equal to Pakistani and Indian currency some 25 years ago.
"Our region has over 70 percent share in carpet exports in the world market," he said, and proposed that India, Pakistan, China should come closer to exploit the world carpet market and join hands in launching an aggressive publicity campaign to attract the international buyer.
Garv said India is organising a carpet exhibition next year, and Pakistan should take part in it, adding the growing wooden and marble floor trend has caused decline in the carpet demand, especially machine-made carpets.
To a question about child labour in carpet industry, he said a lobby of machine-made carpet exporters had raised this issue to defame Pakistan and India.
US carpet buyer Roger said that he was very much impressed by the designs and colours of the carpets put on display at the exhibition. He also thanked PCMEA for holding the regional exhibition and said it provided an opportunity to buyers to have the products from Pakistan, India and China under one roof.
Major Nazir Akhtar (Retd) of PCMEA said that a proposal for setting up of carpet city has been submitted to the Ministry of Commerce, but despite commerce minister's assurance, it could not be incorporated in the trade policy. In the absence of a carpet city, the environmental problems would further aggravate and carpet export might also decline, h added.

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