Pakistani Carpet Exporters Outsourcing to Afghanis

Karachi, Pakistan, September 1--Carpet exporters are being forced to outsource their manufacturing business to Afghanistan following the post-war repatriation of Afghan refugees, whose hand-knotting technique they say is still in demand in the international market. The Daily-Times reported that a large number of exporters, mostly from the NWFP, have started outsourcing carpets’ manufacturing after the rejection of locally knotted products abroad, the exporters say. “I started outsourcing in June 2003,” said a leading exporter, who asked not to be named. “I took the decision because of objections from my clients to our designs and knotting techniques.” He said that, like many exporters, he contacted an Afghan family whose members used to knot the carpets he produced for export. “There are many others who are doing the same, and in fact they encouraged me to follow their example,” he added. An unexpected problem: The voluntarily repatriation of more than two million Afghan refugees since March 2002, which was welcomed as a positive development in Pakistan, turned out to be a big problem for the country’s industry of hand-knotted carpets. The industry has suffered a 30 percent decline in exports during the last three years, and the exporters put this down to the departure of Afghan carpet-weavers who are considered “naturals” in their craft. “The Afghan refugees were involved in 50 percent production of carpets, amounting to roughly 60 percent of Pakistan’s exports,” said the exporter who outsourced his manufacturing business. The Afghan refugees active in carpet production, who were settled mostly in the Peshawar and Attock areas, returned to their country after the ousting of the Taliban government. As much as 98 percent of the carpets produced in Pakistan are exported. The exporters say the basic reason for the downward trend in carpet exports is the absence in Pakistani products of the designs created by Afghan weavers. They say the Afghans had brought the export figures to around $300 million in 2001-2002, an amount which came down to $230 million in 2003-04. Designs in demand: They say that Afghan weavers managed to cleverly copy Persian rug designs, employing the Sana Knot, instead of sticking to the Kashmiri school of carpet weaving widely followed in India. “Such an innovation, coupled with vegetable dyes and antique techniques of washing, gave an immaculate look to Pakistan’s hand-knotted carpets,” said Yaqoob Salehji, a former chairman of the Pakistan Carpet Manufacturers and Exporters Association (PCMEA). Out of the total carpet export, the share of European importers, which used to be 25-30 percent, had now dropped to 17-18 percent, he said. “Exports to the US, Europe and other countries parts of the world continues, but the pace has dropped since the Afghans’ repatriation,” said Mr Salehji. The exporters are now in search of other markets, such as South America and Eastern Europe, so that 2004-2005 could prove to be a better year. “For this we have organized the ongoing three-day exhibition in Lahore from Aug 30,” PCMEA vice chairman Akhtar Nazir Khan said. “Now we are focussing on our non-traditional market, and hopefully will succeed.” He said the exhibition had received confirmation of around 177 delegates and the figures were expected to touch 400 buyers around the world. Industry leaders concur with the exporters’ assessment, but say they are making the best efforts to manage the production locally to meet the demands in the international market. “Yes, it’s a fact,” said Mr Akhtar Nazir Khan. “But we are trying our best to deal with the situation, although it involves risk and more time,” he added. “Actually, it is a cottage industry,” said Mr Khan. “The country has around 1.5 million cottages, 75 percent of them in Punjab, and they are all operating with local workers.”