Carpet industry’s issues to be resolved: SBP

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SBP keeps policy rate unchanged at 7% for next two months

A delegation of Pakistan Carpet Manufacturers and Exporters Association (PCMAEA) met the top officials of the State Bank of Pakistan and presented demands to maintain the credit period as in the past, besides asking for to lift the ban on third-party shipments and apprised them of problems being faced by exporters due to dollar fluctuations and other long-standing issues.

Under the leadership of senior vice chairman of the association Usman Ashraf, the central leader Abdul Latif Malik, senior members Riaz Ahmed, Shahid Hassan and Kamran Razi met SBP officials.

Usman Ashraf informed the authorities of State Bank of Pakistan that hand-woven carpets industry is a cottage industry, semi-finished raw materials come from Afghanistan after which the final production of carpets is done at various places in Pakistan and keeping this in mind, instead of reducing the credit period for exporters of handmade carpets, it should be kept as 270 days as in the past. He further said that exporters of handmade carpets are also facing hurdles in third party shipment.

He said if this ban is not removed, there is a fear that the tendency of foreign buyers may be shifted towards rival countries of Pakistan, which will have a negative impact on our exports.

Usman Ashraf added that the exporters are also facing other problems including dollar fluctuations which should also be removed and along with the shortage of dollars in the country, there are also some forces active due to which the dollar does not remain stable and due to fluctuations in the dollar, exporters are hesitant.

The officials of State Bank of Pakistan assured the delegation of Carpet Association that their demands will be taken into consideration and the issues which require immediate resolution will be resolved without delay.—NNI