Pakistan’s Handmade Carpet Industry Struggles Amid Labour Shortages, High Costs

Delegation of PCMEA Meets LCCI President
By Farzana Chaudhry – Lahore, Pakistan

A delegation of the Pakistan Carpet Manufacturers and Exporters Association (PCMEA), led by Chairman Mian Atiq-ur-Rehman, met with Lahore Chamber of Commerce and Industry (LCCI) President Faheem-ur-Rehman Saigol on Monday to highlight mounting challenges faced by the country’s handmade carpet sector.

LCCI Senior Vice President Tanveer Ahmed Sheikh and Vice President Khurram Lodhi were also present, while the PCMEA delegation included Patron-in-Chief Abdul Latif Malik, Carpet Training Institute Chairperson Ijaz-ur-Rehman, senior member Saeed Khan and Saad Ijaz.

Chairman Mian Atiq-ur-Rehman said the industry is grappling with a severe shortage of skilled labour, rising production costs and heavy taxation—factors that are eroding Pakistan’s competitiveness in global markets. He warned that exports of handmade carpets have dropped sharply, with exporters increasingly unable to match international pricing.

He urged the government to merge all taxes, including Social Security and EOBI, into a single fixed levy to reduce the burden on exporters. Without targeted subsidies—particularly on freight and other major expenses—export growth would remain unachievable, he added.

LCCI President Saigol stressed the need for a comprehensive national export policy, saying Pakistan cannot afford to remain stuck at its current annual export volume of USD 30 billion. He noted that handmade carpets remain a globally recognized Pakistani specialty, and their continued decline is concerning.

Saigol assured the delegation that the chamber would forward their recommendations to relevant authorities and push for urgent policy measures to support the struggling sector.