Afghan Carpet Industry May Face Labor Shortage

Karachi, Afghanistan, April 10, 2007--The carpet industry of the country is likely to face a crisis in coming days, as 80 percent of the workforce comprises Afghan refugees, who are being repatriated to their homeland.

According to official figures, the export of carpets and rugs has already begun showing a declining trend. In July-Feb 2006-07, carpets, rugs and mats worth $145.54 million were exported as compared with July-Feb 2005-06, when their export stood at $171.23 m. These figures show a fall in exports by 15 percent.

In terms of quantity, Pakistan exported 2.29 million square meters of carpets, rugs and mats in July-Feb 2006-07, against 2.83 million square meters exported in July-Feb 2005-06, which shows an 18.83 percent decline. Pakistan exports carpets to countries such as the USA, Germany, Italy, the UK, France, UAE, etc.

Industry sources fear that in coming days carpets’ exports are likely to dip dramatically and the industry would face a crisis-like situation because of labour shortage, caused by the repatriation of Afghan refugees.

“Since the Nineties, most of the local workforce had left this industry and it was mostly Afghan refugees, who were working in this industry,” said director of Afghan Carpets Iftikhar Hussain.

“Carpet business will be very challenging in the future as we face a tough competition from India in the global arena and the cost of production in this business is constantly going up,” he added.

Carpet manufacturing takes place in many parts of the country, which are inhabited by Afghan refugees such as Quetta, parts of the NWFP, Karachi, Attock, etc. A few years ago in Attock, there were around 15 million carpet weaving looms, where most workers were Afghan. The number of looms has rapidly declined since the repatriation of Afghans and carpet manufacturing in this region is now almost non-existent.

Afghans working in the carpet weaving setups in Attock earned on an average 2,500 rupees ($41) for weaving a piece measuring one square foot.

In Karachi, there were 1,000 carpet weaving looms at the Afghan refugee camp near Toll Plaza on Super Highway. Now the number has declined drastically. Since 2002, more than 2.8 million Afghan refugees have returned home under the UNHCR’s voluntary return assistance programme. Exporters are now bringing carpets from Kabul.

Interior Sindh comes second in carpet weaving after the Afghan workforce. Carpet industry is now prominent in places such as Thar.

Experts say “the political crisis in Iran” could help boost Pakistani carpet exports as Iran has the major market share in the world carpet industry.

But exporters don’t agree, saying the quality of Pakistani carpets doesn’t match the Iranian quality. Things don’t look bright for Pakistan’s carpet industry in coming days because of labour shortage, they say.