LAHORE: Pakistan Carpet Manufacturers and Exporters Association (PCMEA) Senior Vice Chairman Usman Asharf has forwarded a 14-point recommendations to the Ministry of Commerce, and Trade Development Authority of Pakistan (TDAP) to enhance exports and solve the problems by the carpet manufacturers.

Usman Asharf told media here Sunday that Pakistan’s traditional competitor is giving concessions and relief to its carpet industry as part of a strategy to damage the export of Pakistan’s signature hand-woven carpet products in the world. In the recommendations, he said, the PCMEA has demanded reduction in the duty tariff for the markets of the European Union, Netherlands, Belgium, Turkey, Eastern Europe, Arab countries of the Asian region, Mexico and Russia, while international freight charges by air and sea should be subsidized.

He added that extension of credit period to 270 days in addition to 120 days for export of hand-woven carpets granted as luxury item status and Lahore to Karachi Railway Bonded Cargo should be resumed in view of low tariff and safety perspective. Besides this, facilitate e-commerce and digital marketing awareness through webinars and workshops and FBR circular 545 should be aligned with circular 492 which clearly mentions the time frame of 18 months. “In the budget of the next financial year, under the 5th schedule of sales tax, relief should be given to the handloom carpet industry in SR 146 para three custom tariff to commercial importers,” he demanded.

Senior Vice Chairman further said that a special budget should be allocated for research and development and for finding new markets to increase the exports of handmade carpets and the current circular of nine percent penalty imposed by State Bank of Pakistan on delay of more than 60 days in recovery of export products should be cancelled. A representative of PCMEA should be appointed as a focal person for budget-related matters and effective communication in the future.

He also demanded that gas and electricity bills for the export industry should be reduced, permanent members of the Export Development Fund should be appointed and the refinance mark-up rate should be reduced from 19 to 10 percent while the financial support in the participation of PCMEA in foreign exhibitions should be done according to the formula of 80/20 instead of 50/50.