LAHORE, June 17: The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has said the decision to abolish duty drawbacks from June 30 will hit the carpet industry hard which is already in a serious crisis because of the change in the par value of dollar and continuing recession in the US and Europe.

Commenting on the federal budget for the next fiscal, PCMEA chairman Abdul Latif Malik said in order to boost exports and revive the economy, some of the proposals in the budget would have to be revised and reformulated in order to provide special protection to export industries like carpets facing a difficult situation after 9/11 in the international market, especially in the US and Europe.

He said the previous orders had not been renewed and the new orders were not being placed. Moreover, the looms are closing down and many weavers in the rural areas have lost their jobs giving rise to unemployment.

Malik proposed that in order to revive carpet manufacturing and create new employment opportunities duty drawbacks should be retained for the carpet industry as a special case.

He said the government should also consider offering a new package of incentives for manufacturers and exporters so that they could play their due role in providing jobs to the rural population and earning foreign exchange for the country.