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LAHORE, Oct 18: Pakistan’s exports of handknotted carpets fell by 28 per cent in the first quarter of the current fiscal 2001-2002 to $43.086 million from $60.622 million during the same period last year.
Exporters fear that their sales could decline more than 50 per cent during the second quarter because of “cancellation of orders after the last month’s terror raids on the American soil followed by retaliatory military action on Afghanistan”.
“The carpet exports have slid in spite of the fact that we did not stop shipment our previous orders even after the September 11 events,” Pakistan Carpets Manufacturers and Exporters Association (South) vice-chairman (elect) Nisar Mir said.
The carpet exports plunged by 14 per cent during September to $21 million from $24.35 million in the corresponding month last year.
“Although we’ve been able to almost maintain exports in the first quarter, it would not be possible during the next few months,” he said. “Our stocks are piling up due to cancellation of orders.”
PCMEA chairman-elect Latif Malik says the drop in exports is hurting the weavers and other workers involved in the production. “At least 200,000 workers associated with the industry would lose jobs if the situation does not improve in the coming few months,” he said, adding many carpet producers are faced with difficulty in paying full wages to their weavers because “their own payments were stopped by the foreign importers due to the crisis”.
As a result of the loss in the carpet exports during the first three months and the ongoing crisis, Pakistan is unlikely to even attain the last year’s figure of $288 million — highest so far.
The US market, says leading exporter, has been affected more than Europe. “The exports are not likely to pick up again before February even if the war ends in a few weeks or so,” he said, adding exports are already “slow” in the world markets because of slowdown in the American economy. “The September raids only intensified the crisis,” he said.
Another exporter said the eastern and southern parts of the United States were more affected due to the terror attacks than the rest of the country.
“There was little chance of new orders coming to Pakistan unless the situation clears. The Oct-Nov period had traditionally been very important for the carpet exports because we sell around 40 per cent of our entire exports during these two months before Christmas,” he added.
“A slowdown in our sales during these two months means that we won’t be able to make up for the loss of exports in the remaining months of (our) fiscal year,” he said.
To pull the industry out of the crisis, the government should restore original duty drawback rate of nine per cent, stop further erosion in the value of the dollar as well as ensure air cargo space for carpet exports. “If these steps are not taken, the industry would lose its buyers,” he warned.
