STAFF REPORT
ISLAMABAD: The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has raised urgent concerns over customs tariffs, which are crippling the survival of the sector.
During a meeting with Federal Minister of Commerce Jam Kamal, a delegation led by Abdul Latif Malik (Patron In-Chief), Usman Ashraf (Senior Vice Chairman), and Riaz Ahmed (Vice Chairman) outlined the dire situation faced by the industry. They highlighted the unique production process of Pakistani carpets, where raw materials are sent to Afghanistan, semi-finished carpets return to Pakistan for final processing, and the finished products are exported globally.
Despite the fact that 99% of these carpets are destined for international markets, the sector is unable to benefit from customs duty exemptions provided by the Federal Board of Revenue (FBR). This lack of incentives, they emphasized, is severely hampering export potential and putting small and medium-sized enterprises (SMEs) at risk of closure.
Industry representatives stressed that customs duties at the Afghan-Torkham border are a significant burden, particularly for SMEs, which form the backbone of this traditional craft.
“To save this sector and ensure its growth, it is essential to make semi-finished carpets duty-free,” urged Abdul Latif Malik, adding that government support is critical for sustainability and competitiveness in international markets.
The association also emphasized the need for long-term policy support to promote “Made in Pakistan” products and protect intellectual property rights for unique Pakistani carpet designs.
The PCMEA hopes for timely government intervention to address these challenges, enabling the sector to regain its competitive edge and secure its place in global markets.