ISLAMABAD: The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) believes the country’s carpet sector has enormous potential to increase exports if the government allows duty-free imports of raw materials, rugs and unfinished carpets, WealthPK reported.
According to the association, consumers are moving towards bright, appealing colours and non-geometrical designer patterns in carpets and rugs, and therefore stakeholders must actively monitor global marketing trends and innovate product design to gain due share in the international market, reports WealthPK.
The association said the carpet industry got a boost after it was included in the Free Trade Agreement between Pakistan and China. Under the agreement, 313 export items, including carpets, have been given duty-free access to the Chinese market. The association said it is a good sign that Chinese and Pakistan weavers are learning from each other’s experiences to manufacture high-quality machine and hand-made items.
According to the Pakistan Bureau of Statistics, the country’s exports of carpets, rugs and mats climbed by 16.45% to $55,372 in the first eight months (July-February) of the current fiscal year 2021-22 from $47,549 in the corresponding period of last year, owing to a continuous increase in worldwide demand. However, exports fell to $6,237 in February from $8,466 in January, reports WealthPK.
The global carpet and rugs market is growing at a compound annual growth rate of 5% during the forecast period (2021-2025). The global market is fiercely competitive with multiple large competitors. The global carpet and rugs market includes North America, Europe, China, Japan, Southeast Asia and India.
In recent years, the carpet industry has seen a significant transformation.
The global market has been driven by optimal prices, quick delivery, and outstanding quality. In the highly competitive carpet business, technical innovation supported by sustainability will be the primary driver of growth potential.
The carpet sector of Pakistan has to be brought in line with the global competitive trading trends to enhance output and exports. Carpet manufacturers and exporters must pay great attention to product quality to compete effectively in the global market.
Pakistan’s government should make it easy for carpet exporters to make the transition from hand-knit to machine-made production. The government should create a carpet city for this to happen.
The government should also ensure that all industry participants are registered so that the tax burden does not fall just on a few. To help bring down production costs, the government should ensure uninterrupted supply of energy and gas at subsidised rates.
Carpet manufacturers should be able to import machines duty-free to spur innovation and make their products more competitive in the global market.
INP
