The business experts and local dealers foresee collapse of hand-made Afghan carpet business in Khyber Pakhtunkhwa in the wake of the repatriation and forced return of Afghan investors.

The province used to generate around $20 to $30 million per annum revenue five years ago that has come down now to a half million US dollars. Peshawar is the best centre of quality hand-made Afghan carpet for the international buyers. Afghan hand-made carpet is being exported to around 50 countries including the USA, Canada, UK, Germany, Russia, China, Turkey and Gulf States.

The repatriation and forced return of Afghan carpet investors would create a wide gap and sudden breakage in the network of marketing. Experts opine that international buyers cannot afford a wide gap and long wait for rebuilding chain of carpet business across the globe.

According to a survey recently conducted by Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI), around 500, 000 private employment opportunities would be created both for skilled and unskilled youth in the industry and trade sectors.

The survey was carried out in the wake of forced return of Afghan refugees. The KPCCI, while preparing a replacement plan, expected an immediate need for recruiting local youth to avoid a complete shutdown of the business and trade activities in the province, a source told this scribe.

He said that it would also include carpet, gemstone and trade businesses. He added that jobs would not be limited only to industrial sector but also carpet business would benefit from it.

“The current situation of forced repatriation of Afghans further aggravated the market trend to an estimated half- million US dollars per annum revenue generation for our restive province. About 80 per cent skilled and unskilled workers related to Afghan hand-made carpet business have already gone to Afghanistan,” Mumtaz Khan, chief of carpet and rugs development company, told this scribe.

Revenue from the trade has dwindled from $20-$30 million to a half million dollars per annum

He said that only 20 per cent carpet business left that involved the process of cutting, thread colouring, washing, straitening and finishing. The process of Afghan hand-made carpet making completed in 10 different stages, he said, adding that there was a huge network involving buying, selling of rough material, production and export to global markets.

“The earlier 200 square metres carpet to 400 metres carpet production per month has now dwindled to only 100 square metres carpet productions. The number of potential Afghan investors in carpet industry runs from 20, 000 to around 35, 000. Every Afghan carpet dealer has invested $ 300,000 to $500,000,” said Mr Khan.

He said that one square metre Afghan hand-made carpet was available for $15 to $100 in the local market depending on its quality, handiwork, usage of pure wool and artful pattern.

“If wise steps are not taken, we will lose huge revenue and a world market for Afghan hand-made carpet business coupled with local employment opportunities,” warned Mr Khan.

Quoting a Peshawar-based Afghan carpet investor, he said that Afghan government had offered attractive perks and privileges in case they were forced to return to to their home country.

He said that a 28-member delegation comprising Peshawar-based Afghan carpet investors had met recently Afghan President Dr Ashraf Ghani in Kabul and he assured them of attractive package in terms of free plots, foolproof security and funds if needed to Afghan investors.

“I strongly believe Afghan investors cannot afford a wide gap and a sudden breakage in the carpet business network. There is no readymade infrastructure and no conducive environment is in place in Afghanistan and Afghan investors know that very well. It will take years to build the necessary infrastructure,” said Mr Khan.

He said that his organisation would take up the issue of Afghan investors and skilled labour with provincial government. Even Afghan refugees didn’t demand Pakistani nationality, he said, adding that they just needed to be given a legal work permit or a multiple stay visa.

The carpet dealer said that Punjab carpet dealers had already asked same incentives for Punjab-based Afghan investors and skilled labour and federal government had promised to grant such perks to the local business community.

When asked why they were not demanding the same facilities from the federal or KP government, he replied: “Once the dust of confusion and uncertainty settled down, we have planned a detailed meeting with both federal and provincial authorities to review the current policy of forced repatriation of Afghan businessmen.”

Agha Jan Azeemi, an Afghan carpet dealer, said that most of the Afghans carpet dealers including Turkmans, Uzbeks and Hazaras were skilled and peace-loving workers. He said that Pakistani authorities should know that shifting business was not like shifting a household.

He said that Islamabad should review its repatriation policy as Afghan traders and business didn’t want to leave Pakistan because of their deep stakes. “By granting a legal status, Afghan investors will come under direct taxation and it will benefit Pakistan,” he said. He added that Afghan dealers had around 50 carpet display centres in and around Peshawar.

Fazl Hayat Khan, the lone local manufacturer of hand-made Afghan carpets, said that the current crisis could be controlled if the authorities concerned reactivated around 1,000 looms lying dysfunctional since long.

He said only 20 looms were operational in the province. He said that six months ago, the province exported 5,000 square metres hand-made carpet but regretted that then only 100 square metre carpet was being exported because of the current crisis in the market as Afghan investors were confused and indecisive.

“I think provincial government should concentrate on training our indigenous youth. We have a considerable number of skilled weavers of Afghan hand-made carpet in pockets of Fata, Kohat, Mardan, Swabi, Nowshera, Charsadda and Peshawar,” said Hayat.

He said that he had been in the business for the last 15 years. “Provincial government should promote our own skilled youth and if this is done, hundreds of thousands of our youth would get direct employment opportunities and also it would fetch us millions of worth dollars as forex,” he added.

Published in Dawn January 22nd, 2017