Karachi, Pakistan, October 19, 2005--Pakistan's carpet exports may face a decline in the current financial year due to the natural calamities in the United States and the skyrocketing oil prices in the international market which have slowed down economic activities in European countries, according to the Business Recorder.
The kingpins of Pakistan carpet industry believe that Katrina and Rita hurricanes disaster had also put a dent to the economic activities. Exporters fear that the $300 million export target set for 2005-06 was in jeopardy.
"After the Katrina and Rita disasters, the buyers of United States are reluctant to get the shipments as the masses of disaster-hit states are engaged in arranging necessities rather than luxuries," said Abdul Ghafoor Sajid, Chairman, Pakistan Carpet Manufacturers and Exporters Association, while talking to 'Business Recorder' on Monday.
"The bulk quantity of carpets lying at different warehouses in American states have also been affected by the disaster and foreign importers are still hesitant to place fresh orders as they have also faced extraordinary losses," he added.
Other sources in carpet industry said that Lahore-based carpet exporters who export their goods to the United States are nervous these days as they are receiving less orders.
"After September 15, normally, local exporters start receiving orders from United States. But this year the pace of US orders is very low," said one exporter.
Commenting on the outcome of carpet exhibition held in Karachi in August, where 45 countries including America, Italy, France, Greece, Spain, Portugal, Brazil, Canada, Japan and UAE participated actively, Sajid said that the country's carpet exporters had succeeded in booking orders worth around $5 million from different countries.
He said that if the government provides 'Carpet City' to manufacturers of Lahore and Karachi, the exports of the country would witness a growth of 10 percent every year. "Actually, we do not have yet a place where foreign buyer could visit," said Pervaiz Sajjad, an office-bearer of the association, adding that once their buyer shows complete faith on Pakistani carpet industry, the exporters would receive very big orders, which would lift the country's carpet exports.
Sajjad said that after establishing 'Carpet City' the manufacturers would be able to make their goods under one roof that will also create more employment opportunities in this sector.
The share of carpet industry in the total exports of the country stood at 1.87 percent, which came back by touching 3.14 and 2.73 percent in the 2000-01 and 2001-02.
"There are six leading carpet supplier countries in the world, namely Iran, China, India, Pakistan, Nepal and Turkey. Pakistan ranks No 4 in terms of value and No 2 in terms of volume," Sajjad said.
"By ranking, Pakistan is on number four in the international market and its share was $220 million during the fiscal 2003-04, while Iran was on top with the exports worth $613 million in the same period," he added.
However, the international market share India and Nepal are $508 million and $75 million respectively, while after hectic efforts China has now emerged as a big player of the carpet industry world-wide and is enjoying the biggest share of the market. It may be mentioned here that to increase carpet exports and to attract foreign buyers, bigger giants among carpet manufacturers organised carpet exhibition last year (2004) in Lahore, which gave fruitful results where the exports of the country witnessed a mammoth increase of $50 million.
