Magazine article Economic Review

Carpet Industry Faces Collapse

Magazine article Economic Review

Carpet Industry Faces Collapse

Article excerpt

Decrease in rebates and incentives, high mark-up rate and continuous harassment by the sales-tax officials have shrunken the target of carpet exports. Its exports are in a deficit of about $100 million or short of the fixed target of $240 million. The official target per month was fixed at $40 million whereas during the last two months (February and March), only 7.5 and $6.8 million worth of carpets were exported. If necessary measures are not taken the carpet industry will die out slowly.

According to the data compiled by the Export Promotion Bureau, during July to March 1992-93, the experts of carpets and rugs (woollen) amounted to $17,763 million as compared with $168.211 million during the same period last year, registering a substantial decline of 29.99 per cent.

According to the same data the carpet exports now ranks 12th among the foreign exchange earning commodities and its share has worked out to be 2.32 per cent in the country's exports. Its rank has dropped from the year's export figures to the 11th position with a share of 3.53 per cent. In an interview with the Chairman of the Pakistan Carpet Manufacturers and Exporters Association (PCMEA), Yaqoob H. Salehji said that during the current financial year 1992-93. India has exported carpet worth $1,000 crores, whereas our exporters could not even maintained their last year's figure of $227 million and would face a deficit of around $90 million.

The chairman said with the start of the new year (1993) the export figures are gradually going down and the industry has suffered a lot because of the wild allegation of employing bonded child labour, which was not "the true picture". He clarified that those children who were engaged in this industry, first of all worked not under any management, but under the supervision of their parents or elders, who themselves work in this industry. …

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