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Pakistan, China to Include Carpet Industry in the Free Trade Deal

According to sources, in order to support and encourage Pakistan’s carpet industry, which employs thousands of women, China and Pakistan have included handmade carpets in their free trade agreement.

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The carpet business had “reached rock bottom because of many trade-related issues,” said Riaz Ahmed, Chairman of Pakistan’s Carpet Manufacturers & Exporters Association.

According to Ahmed, women make up 70% of the workforce in the handmade carpet industry. Pakistan is a significant market for the production of handmade carpets in the area. Chinese investors are attracted by its low labour expenses. Ahmed said.

Pakistan’s exports of handmade carpets fell from $300 million to $68 million in 2015 as a result of escalating shipping costs, tax duties, customs clearance costs, and warehouse costs. Many of women who were employed as daily wagers as a result lost their jobs.

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But now, 313 export goods will have duty-free access to China’s $2 trillion import market thanks to the inclusion of handmade carpets in the China-Pakistan Free Trade Agreement.

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