Pakistan’s hand-knotted carpet industry is facing an existential threat following the abolition of Export Development Surcharge (EDS) funds, prompting the Pakistan Carpet Manufacturers and Exporters Association (PCMEA) to make an urgent appeal to Prime Minister Shehbaz Sharif for immediate intervention to prevent the sector”s collapse.
In a joint statement today, PCMEA leadership, including Chairman Mian Atiq-ur-Rehman and Patron-in-Chief Abdul Latif Malik, highlighted that the critical export sector is confronting a severe financial crunch amid heightened global competition.
The association stressed that the termination of the EDS funds has directly imperiled the survival of what they describe as one of the country’s most important cottage industries. They have pleaded with the Prime Minister to treat the issue as a special case and direct the Ministry of Finance to continue the vital 80/20 subsidy for exporters.
PCMEA officials warned that without this financial support, Pakistan”s representation in the international market would be severely undermined. They cautioned that the industry”s inability to participate in major global trade events would make it incredibly difficult to secure new international orders.
The ongoing financial crisis jeopardizes participation in key exhibitions scheduled for the upcoming year, such as Domotex in Hannover, Germany, various trade fairs in China, and the PCMEA’s own Lahore Mega Carpet Show, according to the statement.
The association described the 80/20 subsidy as the “lifeline” for the hand-knotted carpet industry, which provides employment to millions of skilled artisans across the nation.
In their renewed call for action, the industry leaders emphasized that this support is not merely a subsidy but a “strategic investment” aimed at preserving Pakistan”s cultural heritage, ensuring employment stability, and enhancing national exports and the country”s global reputation.
The officials framed their request as being in alignment with Prime Minister Shehbaz Sharif’s own vision to increase national exports, alleviate poverty, and achieve economic stability. While expressing optimism for government cooperation, they concluded with a stark warning that without immediate financial intervention, this vital export sector may struggle to sustain its role in the national economy.