To promote exports of Pakistan’s carpet sector, which employs thousands of women, China and Pakistan have included handmade carpets in their free trade deal.
According to Riaz Ahmed, vice chairperson of Pakistan’s Carpet Manufacturers and Exporters Association, the carpet industry had “hit rock bottom due to many trade-related challenges.”
In 2015, Pakistan’s exports of handmade carpets dipped from $300 million to $68 million due to rising freight fares, soaring tax duties, customs clearance and warehouse expenses.
Thousands of women who worked as daily wagers lost their jobs as a consequence.
According to Ahmed, women make up 70% of the workforce in the hand-knotted carpet sector.
But now, with the inclusion of hand knotted carpets in the China-Pakistan Free Trade Agreement, 313 export items will get duty-free access to China’s $2 trillion import market.
“Pakistan is a huge handmade carpet manufacturing market in the region,” Ahmed said, “Its cheap labour costs are attractive for Chinese investors.”