PM Urged to Continue Export Subsidy for Hand-Knotted Carpet Industry

By Muhammad Shahzad
Lahore, Pakistan

LAHORE: The Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has appealed to Prime Minister Muhammad Shehbaz Sharif to issue immediate directives to continue the 80/20 export subsidy through the Ministry of Finance, following the abolition of Export Development Surcharge (EDS) funds.

In a joint statement, PCMEA Chairman Mian Atiq-ur-Rehman, Patron-in-Chief Abdul Latif Malik, Vice Chairman Riaz Ahmed, and Chairman of the Carpet Training Institute Ejaz-ur-Rehman highlighted that the hand-knotted carpet sector, one of Pakistan’s most important cottage industries and a significant source of foreign exchange, is facing severe challenges amid the prevailing financial crisis and rising global competition.

The association emphasized that the removal of EDS funds has directly threatened the survival of the hand-knotted carpet industry. Officials urged the Prime Minister to treat the matter as a special case and ensure the continuation of the 80/20 subsidy through the Ministry of Finance. They warned that without timely support, participation in major international exhibitions would be jeopardized, potentially undermining Pakistan’s representation abroad and the ability to secure international orders.

PCMEA officials noted that upcoming events—including Domotex in Hannover, various trade fairs in China, and the PCMEA Lahore Mega Carpet Show—could be adversely affected if financial support is not restored. They described the 80/20 subsidy as the “lifeline” of the industry, which provides employment to millions of skilled artisans nationwide.

The association stressed that the subsidy is not merely financial assistance but a strategic investment to preserve cultural heritage, ensure employment stability, and enhance Pakistan’s exports and global standing.

Officials also highlighted that the hand-knotted carpet industry is a key component of Prime Minister Shehbaz Sharif’s broader vision to boost national exports, reduce poverty, and achieve economic stability. They expressed confidence that the government would provide full cooperation, while cautioning that without immediate intervention, this vital export sector could face serious setbacks.