Share this story!            

Aftermath of 9/11 still looms: Carpet industry striving hard to revive exports

Staff Report

LAHORE: The travel advisory issued by developed economies has already hit the hand-knotted carpet exports severely while Pakistan’s embassies abroad also advice the foreign buyers seeking visa to discourage them by warning them of risk to their life.

This was stated by Pakistan Carpet Manufacturers and Exporters Association Chairman Pervaiz Hanif while giving a briefing to the members of Lahore Economic Journalists Association on the state of carpet industry in Pakistan on Tuesday. He said hand-knotted carpets are a unique product, which the buyers place orders after inspecting every peace.

He said carpet exports suffered first after 9/11 as the foreigners stopped visiting Pakistan. However, he added their confidence was restored after hectic efforts by the hand-knotted carpet exports. He said the second set back to carpet exports was more severe after the proclamation of emergency by the then president of Pakistan General Musharaf. The buyers drastically reduced touching Pakistani soil, he said and added that the exports during this period have almost halved from $300 million to $145 million in 2008-09.

Hanif said the exporters again convinced the buyers that things are almost normal in Pakistan and there is no danger for them at least in big cities like Karachi and Lahore. He said members have reported that many Pakistani embassies do issue visas to prospective carpet buyers, but verbally warn them that visiting Pakistan is a risk to their life.

He said in this regard buyers from Spain, Italy and Turkey have quoted the warning of the Pakistani embassies while refusing to visit Pakistan.

PCMEA Chairman said that carpet is a cottage industry in Pakistan that requires no infrastructure. He said carpets are weaved on handlooms mostly by women in their homes. He said the carpet weaving provides employment to 1.5 million workers. He said it is a labour intensive industry where the labour accounts for 70 percent of the input cost while the raw material accounts for 30 percent of the production cost.

He said another aspect worth noting is that the carpet weaving is done in the poverty stricken regions of the country. He said in early seventies it was concentrated in poor regions of central Punjab like Daska and Sangla Hill. He said as the affluence increased in the region the carpet weaving has now shifted to South Punjab in areas like Vehari, DG Khan and Ghakkar. Another aspect in this trade is that 70 percent of the workforce is of women that operate looms at their home and supplement the income of the male family members. He said this industry has developed without any government support though by its nature it should have been the top priority of every government. He said that the major hand-knotted carpet exporting countries have shifted their carpet production to factories, while it is still a cottage industry in Pakistan.

He said India has emerged as the largest exporter of hand-knotted carpets in the world with a yearly export of $1.2 billion. However, he added that the Indians export low value-added carpets. He said Pakistan could increase its exports four times from the current $145 million to $600 million if the government facilitates the exporters. He said the carpet exporters are receiving delayed payments of their consignments due to the global recession. They are not in a position to fulfil the State Bank’s condition of turning over two times the low interest export refinance provided to them. He said in view of exceptional conditions that the SBP should waive this condition as it did last year. He said that the central bank has also reduced the amount of export refinance from 100 percent to 75 percent. This has created liquidity crunch for the exporters. The Trade Development Authority of Pakistan should also be asked to adopt a proactive approach in facilitating participation of carpet exporters in international fairs. He said the government should also arrange the establishment of programmed carpet weaving centres to ensure large-scale manufacturing of the same designs for big stores in Europe and America.

Home | Business

Share this story!