The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has made an urgent appeal for a comprehensive relief package for export industries in the forthcoming 2026-27 budget. This request highlights the critical need to strengthen exports as a means to promote economic stability, create jobs, and enhance foreign exchange earnings.
In an open letter sent today to key government figures including Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb, the Association’s Chairman Mian Atique-ur-Rehman and Vice Chairman Riaz Ahmed identified major obstacles faced by exporters. These include rising production costs, heavy taxation, and intense global competition.
PCMEA has specifically demanded the restoration of the 1.5% final fixed tax regime for exporters, which they state is essential to maintain international competitiveness. Furthermore, they have appealed to reduce the maximum income tax rate from 45% to 35% and to permanently remove the flood surcharge and super tax, which they view as additional pressures on businesses.
The Association has also advocated for the revival of the 80/20 subsidy scheme for participation in international exhibitions, highlighting its importance in securing export orders and promoting Pakistani products globally.
Other proposals from PCMEA include reducing electricity and energy costs for export sectors, ensuring timely tax refunds and exemptions, and introducing targeted incentives to enhance export growth and competitiveness.
Additionally, the Association has expressed serious concerns over the delay in funding preparations for the 42nd International Handmade Carpet Exhibition to be held in Pakistan in October. The uncertainty regarding financial support has created anxiety among exporters, many of whom have already completed significant production in anticipation of securing export deals at the event.
PCMEA has warned that continued delays in funding could affect Pakistan’s credibility in international markets and has called for immediate government intervention to release the necessary funds. It emphasized that timely arrangements are crucial for effective engagement with international buyers and for strengthening the country’s handmade carpet export sector.