Carpet exporters call for govt action on high tariffs

November 29, 2024 (MLN): 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, Abdul 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% of these carpets are exported, they are unable to avail the benefit of custom duty exemptions from the Federal Board of Revenue (FBR), leaving them without vital incentives for exports.

The representative of carpet association emphasized 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,” Abdul Latif Malik urged, adding that government support is crucial for the sustainability of the industry.

Minister Jam Kamal Khan assured the PCMEA of his full support, recognizing 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 Kamal Khan 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.

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