PCMEA calls for restoring handloom carpet industry’s special status

LAHORE: Pakistan Carpet Manufacturers and Exporters Association (PCMEA) Sunday called upon the State Bank of Pakistan (SBP) to restore the status of handloom carpet industry as a special industry by removing the requirement of 120 days of payment from abroad on export contracts.

Talking to the media here, Association’s Senior Vice Chairman (SVC) Usman Ashraf said that under the special industry status, handloom carpet industry had a discount of 180 to 270 days. He opposed the deduction from three to nine per cent on the receipt of the exported products from abroad after the specified period of payment, asserting that such SBP regulations would affect the already disadvantaged handloom carpet industry.

Usman Ashraf said that he had also conveyed the PCMEA concerns to the SBP governor over the circular, issued by the Bank regarding realization of export proceed. The Association had been working to promote Pakistani carpets worldwide for decades, but strict regulations and other issues would hamper carpet exports, he added.

He cited that the SBP circular proposed deductions up to nine per cent on delayed recovery of export proceeds, i.e. three per cent deduction for delay of export proceeds up to 30 days, six per cent for delay of 31 to 60 days and nine per cent for more than 60 days.