The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has issued a desperate plea for help, directly appealing to Prime Minister Shehbaz Sharif to intervene and prevent the collapse of the country's historic handmade carpet sector. The industry, a cornerstone of Pakistan's cultural heritage and export economy, is facing an existential threat from a combination of internal policy failures and fierce international competition.
An Industry on the Brink of Collapse
In a formal communication addressed to the Prime Minister, senior PCMA leaders, including Chairman Abdul Latif Malik and Senior Vice Chairman Usman Ashraf, outlined the severe challenges crippling the sector. They emphasized that the handmade carpet industry is not just a business but a vital source of employment for millions of skilled artisans across Pakistan, particularly women working from their homes.
The association's leadership painted a grim picture, warning that without immediate and substantive government support, this centuries-old craft faces permanent ruin. The crisis has been exacerbated by high production costs, complex tax structures, and a lack of competitive export incentives, making Pakistani carpets less attractive in the global market compared to rivals like India, Iran, and China.
Key Demands for Survival and Revival
The PCMA's appeal to PM Sharif includes a clear set of actionable demands designed to provide immediate relief and long-term stability. Central to their request is the call for a significant reduction in the 15% sales tax currently imposed on the sector. They argue this tax is a major burden that stifles growth and profitability.
Furthermore, the association is seeking the restoration of a 5% duty drawback on exports, a crucial financial incentive that was previously available to exporters. They also highlighted the critical issue of refunds stuck with the Federal Board of Revenue (FBR), which severely hamper cash flow and operational capacity for manufacturers. The leaders stressed that resolving these financial bottlenecks is essential for the industry's survival.
The demands presented are:
- Immediate reduction of the 15% sales tax on the carpet industry.
- Reinstatement of a 5% duty drawback scheme on carpet exports.
- Expedited processing and release of stuck tax refunds from the FBR.
- Government-led initiatives to promote Pakistani handmade carpets in international markets.
A Call to Protect Heritage and Livelihoods
The PCMA leaders made a powerful emotional and economic argument, reminding the government that this industry is a primary source of income for countless families in rural and semi-urban areas. Its decline would not only mean the loss of export revenue but also trigger widespread unemployment and social hardship among some of the country's most skilled but vulnerable workers.
They expressed a strong hope that Prime Minister Shehbaz Sharif, known for his pro-business approach, would give this matter his personal attention. The association believes that with the right policy interventions, Pakistan's handmade carpet industry can reclaim its former glory in the world market, boost foreign exchange earnings, and secure the livelihoods of millions. The ball is now in the government's court to decide whether to safeguard this invaluable national asset or watch it fade into history.
