ISLAMABAD: The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) met with Federal Minister for Commerce, Jam Kamal Khan to request relief from customs’ tariffs that are adversely impacting the survival of the sector.
The delegation, led by Abdul Latif Malik (patron-in-chief), Usman Ashraf (senior vice chairman) and Riaz Ahmed (vice chairman), highlighted the challenges faced by the industry and sought immediate government intervention.
During the meeting, Latif explained the complex production process of Pakistani carpets, wherein, raw materials are sent to Afghanistan, raw/un-finished carpets are returned back to Pakistan for final furnishing/processing before being exported globally.
However, despite the fact that 99 per cent of these carpets are exported, they are unable to avail the benefit of Customs duty exemptions from the Federal Board of Revenue (FBR), leaving them without vital incentives for exports.
The representative of carpet association emphasised that the Customs duties at the Afghan-Torkham border were 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,” Latif urged, adding that government support is crucial for the sustainability of the industry.
Jam assured the PCMEA of his full support, recognising the sector’s potential as an export enhancer.
He stressed the importance of promoting “Made in Pakistan” products and addressing intellectual property issues, such as patent protections for Pakistani carpets, to improve global recognition.
The minister also proposed convening a meeting with the FBR and other stakeholders in the near future to explore the solutions and address the sector's concerns.
Jam reiterated his commitment to fostering growth in the carpet manufacturing industry and helping SMEs flourish.
The PCMEA hopes that the government's timely intervention will provide relief to manufacturers, helping the sector regain its competitive edge in international markets.
Copyright Business Recorder, 2024