PAKISTAN’S CARPET INDUSTRY: ANALYSING THE DECLINE

Tahreem Fatima

HABIB UNIVERSITY
KARACHI, PAKISTAN
2019
PAKISTAN’S CARPET INDUSTRY: ANALYZING THE DECLINE

BY
TAHREEM FATIMA

HONORS MAJOR RESEARCH REPORT

IN PARTIAL FULFILLMENT OF THE
BSC IN SOCIAL DEVELOPMENT AND POLICY

MAY 2019
PAKISTAN’S CARPET INDUSTRY: ANALYZING THE DECLINE

© Copyright [2019] by [TAHREEM FATIMA]

All Rights Reserved
Habib University, Karachi, Pakistan
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Tahreem Fatima

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honors project for the Bachelor of Science in Social Development and Policy.

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PAKISTAN’S CARPET INDUSTRY; ANALYZING THE DECLINE

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Number of words: 7954

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1st May 2019

Date
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 ABSTRACT

The art of carpet manufacturing is one of the oldest crafts present in the sub-continent. It gained
popularity in India during the 16th century, when Akbar brought carpet weavers from Central
Asia and set up workshops. This cottage industry has been a source of major foreign exchange
earnings for Pakistan and constitutes 0.64% of the total GDP while employing more than 1
million people. According to recent news reports, Pakistan has lost its share in global carpet
trade as its export value declined by more than 50% over the last decade, down from USD 278
million in 2005-06 to USD 97.680 million in 2015-16. In the year 2017-18, export of carpets
and rugs registered a negative growth in value by 9.2% whereas its exports quantity declined
by 6.3%. Reasons for this decline range from high taxes and input costs, access to funds and
raw materials, terrorism, transportation, and unskilled labor amongst the many others. This
paper aims to study the rapid decline faced by the Pakistani handloom industry and analyze the
various reasons through the theory of time and space compression by David Harvey (2000).
Ethnographic interviews will be conducted with the carpet vendors and exporters present in the
Saddar area of Karachi, many of which have been present since the 1950’s, in order to support
the analysis discussed in the paper.

KEYWORDS
Time and Space Compression, Carpet Industry, Exports, Pakistan
 PREFACE AND ACKNOWLEDGMENTS

This research could not have been conducted without the support of my advisor, Dr.
Aaron Mulvany. I am extremely grateful to Dr. Aaron for his detailed feedback and intellectual
support which allowed me to produce this paper. I would also like to thank Dr. Hafeez Jamali
for building my interest in the theme of globalization and economy. I extend my gratitude to
all of my teachers at Habib University who have contributed immensely to my knowledge in
the past four years.
I am extremely grateful to the carpet retailers who took out time to participate in this research.
Without their knowledge and feedback this research would not have been possible. Finally, I
am most grateful to my parents, siblings and fellow peers for their unconditional support and
encouragement.
 TABLE OF CONTENT

BACKGROUND 1
PROBLEM STATEMENT 4
THEORETICAL FRAMEWORK 6
METHODOLOGY 8
FINDINGS 9
DISCUSSION 16
LIMITATIONS 22
CONCLUSION 22
BIBLIOGRAPHY 24
APPENDIX A: INTERVIEW QUESTIONS 27
 Background

A carpet is a textile floor covering typically consisting of an upper layer of pile attached

to a backing (Padhye & Nayak, 2016). The pile usually consists of twisted tufts which

are typically heat-treated to maintain their structure (Dahlin, 2016). The weaving and

knotting can take from six months to several years, depending on the fineness or

coarseness of the carpet (Schuster, 2008). Carpets are of several kinds, such as woven,

needle felt, knotted, tufted, machine made. Carpets are categorized as handicrafts.

According to UNESCO, handicrafts are “artisanal products or handicrafts are those

produced by artisans, completely by hand or with the help of hand tools & even

mechanical means, as long as the direct manual contribution of the artisan remains the

most substantial component of the finished product” (UNESCO and International Trade

Centre, 1997).

The art of carpet manufacturing is one of the oldest crafts present in the sub-continent.

Excavations at Moenjodaro and Harappa, ancient cities of the Indus Valley civilization,

have established that the inhabitants used spindles and spun a wide variety of weaving

materials. The origin of carpet weaving is surrounded by various theories. Some

historians consider that the Indus Valley civilization first developed the use of woven

textiles (Bilgrami, and Ahmed, 2004), while others believe that carpet making was

introduced to the region now constituting Pakistan, only in the 11th century with the

coming of the first Muslim conquerors the Ghaznavids and the Ghauris (Cameron &

Khair-Uz-Zaman, 2006).

In the 16th century, Mughal Emperor Akbar brought carpet weavers from Central Asia

to teach local weavers the designs and techniques of carpet weaving, and soon thereafter

a unique indigenous style developed (Schuster, 2008). Workshops were set up at places

such as Agra, Lahore, Fatehpur, Sikri, Ahmadabad, Gujrat, and some other places

1
(Aalum, 2014). Patterns of Mughal period carpets consisted of vines and floral patterns,

animal figurines to calligraphic patterns, all hand-knotted into wool or silk (Narayan,

2018). According to Schuster (2008), oriental rugs are still made today in Pakistan and

India, but most of the designs are based on Persian and Central Asian prototypes.

During the Mughal rule, carpets with variety of designs and densities from South Asia

were appreciated and gained popularity worldwide, due to which their demand grew

both internationally and locally.

By the late 17th century, the art of carpet making slowly emerged as a small industry

providing opportunity for some skilled laborers to earn their living (Aalum, 2014).

Today, Lahore, Multan, Hyderabad in Pakistan and Agra, Mirzapur and Jaipur in India

are known for their carpets (Shaheen, 2004). Handmade Carpet manufacturing sites are

present all over Pakistan, mainly in Sindh and Punjab. Pakistan is amongst the six major

carpet suppliers of the world, alongside Iran, India Nepal and Turkey (Cameron &

Khair-Uz-Zaman, 2006). Until the early 1970s, the carpet industry received no

government patronage and limited carpet weaving activity took place in big cities.

However, in the 1970s, Zulfqar Ali Bhutto adopted policies to encourage carpet-

weaving in the country, including setting up a number of carpet-weaving centers (Nasir,

2004).

Pakistani craftsmen have the capacity to produce any type of carpet using all the popular

motifs of guls, medallions, paisleys (botehs), traceries, and geometric designs in

various combinations (Stine, 1997). The Pakistani carpets are predominantly divided

between Mori and Persian design; Mori carpets, renowned for the Bokhara type and

Turkmenistan patterns, are found in rich blue, red or green colors whereas the Persian

style is similar to the Kashan and Kerman designs. According to Small and Medium

2
Enterprises Development Authority (2018), Pakistan’s carpet exports consist of the

following type of carpets:

1. Single know (major qualities are Bokhara, Jaldar and Silk)

2. Double Knot (also known as Pak-Persian Carpets)

3. Turkish knot made with hand spun vegetable dyes learned and indigenized from

Afghan refugees (Such as Chobi, Kazak, Karghai, Gabbeh)

According to Pakistan Carpet Manufacturers and Exporters Association (PCMEA),

there are 150,000-200,000 looms in the country, whereas the number of weavers is

estimated to be around 200,000-250,000. At one time an atelier might have been under

the actual domain of a ruler, but later family-run enterprises controlled the carpet

manufacturing and distribution (Schuster, 2008). The carpet industry is a perfect

example of a domestic industry set up within the confines of a home and produced by

family members that has now grown to become an organized industry in many

countries around the world. This item, made in a particular style in a certain area,

retains a craft and history carried throughout time. Due to changing times and the

expansive global reach, this handicraft is made available to a larger audience.

According to the PCMEA, hand-knotted carpets are included as one of the major

exports of Pakistan. These carpets contribute greatly towards earning foreign exchange

as the demand in Western countries is high (National Bank of Pakistan, 2013) and

makes up around 2.5% of total exports (Yasmin & Altaf, 2014). More than 1.5 million

people are employed in this sector and more than 3 million people directly or indirectly

depend on its earnings (Nasir, 2004, p.1). Additionally, this industry constitutes 0.64%

of the total GDP, 3.66% of the manufacturing industry GDP, and approximately 14%

of the small-scale manufacturing sector GDP (Nasir, 2004, p.1).

3
 Problem Statement

Carpet manufacturing was flourishing in Pakistan and has been a major source of

foreign exchange, but currently this industry is not demonstrating a significant export

growth and is in dire need of support in order to improve (Yasmin & Altaf, 2014). After

Partition, the carpet industry remained neglected until the 1970’s, during which a

decline in Iranian carpets allowed Pakistani carpets to prosper (Shaheen, 2004). But

exports have since decreased, for example, by USD 5.71 million over 1994-95 alone.

The average growth for a period of five years from 1994-95 through 1998-99 has been

–9%. Only in one year, 1998-99, the exports declined by 58% (Small and Medium

Enterprise Development Authority, 2011). The value of exports was USD 284 million

in 2005, but it declined to USD 186 million in 2008, accounting for 1.14% of the total

exports in 2007-2008 (Bilgin, Demir, Lau, Kin‐Man To & Zhang, 2011).

Pakistan’s export values remained higher than China and India’s from 2004 to 2007 but

faced a sharp decline in the years to follow (Yasmin & Altaf, 2014). According to a

report by the National Bank of Pakistan (2018), Pakistan has lost its share in global

carpet trade as its export value declined by more than 50% over the last decade, down

from USD 278 million in 2005-06 to USD 97.680 million in 2015-16, whereas quantity-

wise the volume fell to 1,922,000 square meters in 2015-16 from 2,493,000 square

meters a year earlier, a drop of 22.90%. Countries such as India and Iran are far ahead

in the global carpet market than Pakistan. India, for example, had an annual carpet

export of USD 300 million which soared to USD 8 billion in 2016 (Syed, 2018). In the

year 2017-18, export of carpets and rugs registered a negative growth in value by 9.2%

whereas its exports quantity declined by 6.3% (Ministry of Finance, 2018). During the

year 2017-2018, The carpet exports by India were 1.430 billion dollars, while

Pakistan remained restricted to USD 75 million (Hussain, 2018).

4
The rapid decline in exports, consumption, quality, and competitiveness of Pakistani

handmade carpets is a result of various factors, some of which include the ineffective

policies and governance in regard to small-scale industries, inflation, lack of skilled

labor and product exposure, and high mark-up rates (Corporate Development Partners,

2015). A recent report on Pakistan’s small-scale industries cited high taxes and input

costs, access to funds and raw materials, terrorism, transportation, and unskilled labor

amongst the many problems faced by Pakistan’s cottage industries (Khan, 2018). The

issue of child labor is also crucial and has led to fluctuation in carpet sales (National

Bank of Pakistan, 2013). Convener of the Development and Revival Committee on

Carpets, Aslam Tahir, stated that the exports of carpets are falling due to a lack of

positive response from the government, lack of skill development or research, and

absence of finances (Khan, 2016).

Compare those to Yasmin and Altaf (2014), who argue that the reasons for lower export

values are high interest rates and cost of inputs, non-conducive government policies,

and non-guaranteed energy supplied that hinders the competitiveness of Pakistani

exports. The Commerce Ministry included machine-made carpets in the Free Trade

Agreement (FTA) concession list, while handmade carpets were excluded, and there is

no demand for machine-made carpets in the international market (National Bank of

Pakistan, 2018). Governments of other countries provide special programs to facilitate

and encourage their cottage industries, such as incentives or workshops. However, the

Government of Pakistan provided no such support. It is possible that the extreme level

of government neglect has led to the inability and inefficiency of the Pakistani carpet

sector. This paper aims to demonstrate that the lack of attention given to the handloom

sector of Pakistan by the government is a direct reason for its deteriorating state, both

5
locally and internationally, and to present ethnographic data that supports this

conclusion.

Theoretical Framework

David Harvey’s theory of time and space compression serves as the guiding principle

for this research. This theory explores the transformation from “Fordist capitalist

system” to a “flexible accumulation of capitalism”. Fordism was named after Henry

Ford who initiated this concept in 1914. It lies on Ford’s vision that “mass production

meant mass production” (Harvey, 2000, p.125-126). It is described as “a model of

economic expansion and technological progress based on mass production: the

manufacture of standardized products in huge volumes using special purpose

machinery and unskilled labor” (Tolliday & Zeitlin, 1987, p.1). Under Fordism, goods

are mass produced in an assembly line production method while capital and labor stay

within domestic boundaries. By the early 1970s, Fordism faced a crisis. Harvey cites

issues in labor contracts and allocations, declining production, and inflation, as some

of the reasons which caused the capitalist mode of production to shift. According to

him, the new system is “marked by a direct confrontation with the rigidities of Fordism”

(p. 147). Furthermore, “It is characterized by the emergence of entirely new sectors of

production, new ways of providing financial services, new markets, and, above all,

greatly intensified rates of commercial, technological, and organizational innovation”

(p. 147). Major changes occurred due to this shift; fixed capital and labor became fluid

and mobile. Furthermore, a “rapid deconstruction and reconstruction of skills” (p.150)

occurred due to which labor was required to perform multiple tasks rather than

specialized tasks. In terms of state, intervention and regulation decreased leading to

deregulation and privatization of welfare.

6
Innovations in technology and communication enabled this shift. Items could now be

shipped to foreign locations and be sold, whereas capital can easily be transferred across

boundaries in very less time. Harvey argues that a time-space compression has

occurred, that “the time horizons of both private and public decision-making have

shrunk, while satellite communication and declining transport costs have made it

increasingly possible to spread those decisions immediately over an ever wider and

variegated space,” (p. 147). Efficient communication, fast information flow, improved

methods of distribution have sped up production and consumption. Credit cards are one

such example, as money is transferred through one swipe over any distance in a just a

matter of seconds. In terms of consumption, mobilization of fashion in mass markets

and the shift away from consumption of goods and instead to consumption of services,

both developments have contributed to the compression of time and space.

Our current time is characterized by new and efficient technology, information and

communication facilities which have commodified both time and space. Both can easily

be overcome. In this situation, industries are required to be well-equipped to

successfully function and keep up with the phenomena of time and space compression.

Pakistan’s cottage industries have great potential, but they lack the resources and

support to move forward. Currently, the industry faces many issues, such as no bonuses

or incentives present for laborers, exporters are not provided with rebates, nor has any

effort been made to enhance labor skills or boost the export of products abroad. India,

by contrast, is one of the leading countries in the international market of the handmade

carpets and exports carpets to over 70 countries. Pakistan’s carpet industry is in dire

need of effective policies and regulation by the government so it can succeed in the

current age of time and space compression and recover its export rates to create a

successful market which contributes to the development of the country.

7
 Methodology

This research will take an exploratory qualitative approach to explore the reasons why

Pakistani hand-made carpets are facing a decline in exports. According to Reiter (2014),

exploratory research inquires the extent to which a theory and a hypothesis can explain,

how well it can explain it, or how meaningful and fruitful an explanation is.

Furthermore, this research design seeks to provide new explanations that have been

previously overlooked and does so through the active involvement of the researcher in

the process of amplifying his or her conceptual tools to allow him or her to provide

alternate explanations of a given reality, from a different angle.

The rationale behind choosing this design is to thoroughly understand and explore the

realities of the carpet retailers in the context of the academic data present. This will

allow a deep and qualitative understanding of this topic. It pursues a qualitative

approach in order to gain thorough and detailed data that analyzes both the existing

academic work, and the fieldwork gathered. For this research, I will review the existing

literature and also conduct interviews with various carpet exporters and shop owners.

As there is lack of academic data from more recent years, especially since 2015, I have

included news articles addressing the current situation.

Interviews have been conducted with the carpet exporters and retailers present in

Saddar area, Karachi. Consent has been taken to both conduct and record the interviews

and pseudonyms are used to protect the identity of interviewees. Data has been

collected through in-depth interviews including open ended questions intended to probe

the reasons for the Pakistani handloom sector’s decline. The sampling method

employed is purposive sampling, also known as a judgmental or expert sample, and its

main objective is to produce a sample that can be logically assumed to be representative

8
of the population (Lavrakas, 2008). The theoretical framework employed to study this

topic is David Harvey’s (2000) Time-space compression theory. This theory will be

used to analyze the academic and ethnographic data present on this topic.

Findings

Vehicles of all sorts sped by me as I stepped on to the pavement of Club Road, Saddar

bazaar. My ears were suddenly filled with jarring sounds of horns, accelerators, breaks,

mixed with a muted but significant buzz of the voices of people walking by. Bright sun

rays lit up Club Road, shining upon the vehicles rushing by, as if highlighting the chaos

of Saddar. I proceeded towards the entrance of the carpet market as a deep burgundy

colored rug with undertones of classic blue caught my eye. It hung proud and tall,

embroidered with a repeating octagonal pattern of ivory color, encapsulated rows of

geometric patterns. I immediately recognized this as the famous Pakistani Bokhara

design, a very popular type of handmade carpet consisting of handmade Persian knots

and wool. I stepped inside and walked further into the lane of the carpet market. My

ears met a somber dull silence as the noise of Saddar slowly died down along with the

bright sunlight present outside. Carpets of various designs, colors and sizes decorated

the lane. Purples, reds, blues and browns popped out and brightened the dimly lit lanes

as I walked along. Motifs of Mughal emperors and peacocks amongst lush green

gardens were also a popular print on many carpets. Shopkeepers seemed to be shaken

out of a trance as they moved from their sitting areas and gazed out of their windows

as I passed by. They might have recognized me as an outsider or were put off guard by

someone visiting the carpet market. A beautiful blush rose colored carpet stood out

amongst the canvas of colors. Beige, peach and light browns peaked out against the

varying shade of the beige background. The intricate floral patterns mixed with the

9
beautiful variation in colors and contrasts could only be found in Chobi carpets. Made

from natural dyes present in trees and creating shades through varying degrees of

absorption, the carpets are then hand-knotted to produce these symmetrical carpets with

delicate designs. The bland brown lanes of the carpet market were adorned with many

such magnificent carpets and men who seemed to be sitting idle. The juxtaposition

between the chaotic buzzing Saddar and the empty and quiet, yet beautiful, lanes of the

carpet market was profound. It took me a few seconds to come to terms with the fact

that I was still in Saddar, as the deep silence urged me to believe otherwise.

The rich smell of wool and threads mixed with Attar hit my nostrils as I stepped inside

the first store. A bearded man dressed in a button-down shirt and dress pants sat at the

edge of the store on a floor cushion, his eyes fixated on his phone as he frowned.

Another man, dressed in white shalwar kameez stood up as I entered. His name was Ali

and he worked for Mr. Altaf, who generously agreed to answer my questions. Mr. Altaf

informed me that his carpets come from Lahore, Interior Sindh, and Hyderabad, and he

has been involved in this business since his youth. He only dealt in handmade carpets

and expressed his dismissal towards machine-made carpets as, according to him, they

did not retain the essence of the craft. Before I asked him about the exports and current

market scenario for carpets, he expressed his surprise on my arrival and proceeded to

discuss the lack of customers. “Many days we sit without having sold any carpets, but

this is our work, what else can we do?” I asked him why this is the case and discussed

with him the decline in carpet exports. His answer captured various factors, ranging

from rumors of child labor to the lack of support provided from the government. He

spoke against the constant imposition of taxes and the reduction of rebates (personal

communication, 24th March 2019).

10
From here, I went towards the adjacent shop, which was quite narrow and constricted

compared to the rest of the shops. Inside, a man dressed in white shalwar kameez stood

gazing outside. His name was Shehzad, and his family had been involved in the carpet

business for the past 30 years. They mainly stocked carpets from Afghanistan and Iran.

This led me to ask why they would not prefer selling locally made carpets, to which he

displayed a somber expression and with a sturdy tone stated that the quality of these is

far better than the quality of those made locally. However, he did express his interest in

Bokhara carpets made by the Bengalis residing in Karachi. Shehzad remained strongly

rooted in his opinion regarding the lack of skilled laborers, who are unable to provide

designs which would be able to fare well in the international market. He continued that

the lack of government participation has caused the role of the shopkeeper to evolve

while reducing the role of the ‘karigar’ (craftsman). He concluded by reiterating his

opinion that it is the shop keepers who have to deal with the international markets and

then the craftsmen; “we have to provide for both unaided by the government” (personal

communication, 24th March 2019).

I decided to venture deeper into the alleys of the carpet market. A few feet away I

spotted a beautifully woven carpet which seemed to be of silk. A tree was woven into

it, with branches and leaves spreading out all over the carpet, while peacocks sat under

the shade. This scene was portrayed against a beige background. At a closer look, I

noticed birds of an orangish-brown shade sitting on the branches. The vivid imagery

and the contrasting colors held my sight for a moment, after which I proceeded towards

it. This shop was a few feet below ground and was connected to the market through a

staircase. As I descended, I could see carpets of various shapes laid on the floor,

consisting of various imageries of peacocks, parrots, and lush gardens. The vibrant

carpets stood out against the brown concrete interior of the shop. Mr. Hafiz, the owner

11
of this shop, warmly greeted me as and inquired what carpet I would like to see. After

informing him of my research and its purpose, Mr. Hafiz informed me that he stocks

handmade carpets from various areas in Pakistan, such as Lahore, Landhi, Hyderabad,

Latifabad and Chachro. His shop has been in this area since the 1980s and he too, like

many others, pursued it due to his family. I inquired about the decline in the rates of

carpet exports and local consumption and asked him what he would cite as potential

reasons. He stated that the phenomena of child labor used to be a significant factor, but

it has been greatly reduced. He believed government policies and the innovation of

‘machine made’ carpets to be a reason for the decline. Towards the corner of the shop

sat another man who suddenly joined the conversation. One of his first questions to me

was whether I have observed a carpet being made. Without waiting for me to answer,

he excitedly reached for his phone and showed me a video of a carpet being made, with

focus on the finger intertwining with the material which was being woven into a carpet.

He watched with gleaming eyes and urged me to look. His appreciation for this art was

demonstrated further in his conversation, during which he expressed disdain at the

decline of consumption and export of hand-made carpets. He did not blame the

machines. Instead, he blamed the government and for reasons very similar to the ones

Mr. Hafiz had given. His name was Mr. Altaf, and he added that the Indian and Iranian

government treat their cottage industries like a ‘ladla bacha’ (favorite child), whereas

our government imposes sales taxes. His tone expressed his frustration as he stated

“how can they impose sales tax on a cottage industry? And that too on something which

does not sell?” Mr. Hafiz added that India and Iran provide rebates to their carpet

industries, which we had during Zia’s time at 26%. This fell to 18%, then 11%, then

5%, and eventually to 0%. However, India and Iran’s rebate rate is currently more than

18%. Both men harbored an agitated yet helpless tone as the conversation went on. Mr.

12
Hafiz, in an exasperated tone, asked how he is supposed to pay laborers when our

product does not sell and our country does not help us. Other countries provide carpet

exporters with markup rates, rebates, and they are provided payments half in dollar half

in local currency. They also pointed out the lack of skilled labor in Pakistan, which

other countries have successfully addressed through programs and design schools. Mr.

Hafiz concluded his statement by saying that the demand for this craft is high, but they

need government support (personal communication, 24th March 2019).

I made my way out of the carpet market and walked towards a large store adjacent to

it. Afghan Carpets has been involved in the carpet industry since 1952 and sells and

exports oriental handmade rugs from rural Sindh and Lahore. This was the largest

carpet store in this vicinity, with a wooden interior, decorated with many kinds of

burgundy colored Bokhara carpets. The shop owner, Mr. Ahsan, was busy typing away

on his computer as he agreed to speak to me. He said that since 1952 he has seen only

decline in terms of both export and local consumption of handmade carpets. According

to him, this is not only due to the machine-made ones which are cheaper and more

diverse in designs, but also due to the poor government policies that have stunted the

growth of the handloom sector, thereby allowing not only machine-made carpets to take

over, but also allowing other markets such as India or Iran to exceed Pakistan in terms

of handmade carpets. He stated that no labor incentives, no rebates, lack of training for

labor, no promotion of cottage industries, and lack of regulation of this department have

led to the decline. Mr. Ahsan put emphasis on India’s willingness to polish the skills of

their craftsmen, due to which he believes that we may never be able to keep up with

them. He also told of his recent experience at a German carpet exhibition, Domotex, in

which only 4 carpet owners were present from Pakistan, whereas there were more than

200 carpet vendors from India. He added that carpet industries of countries such as

13
India have excelled only due to subsidies, incentives by government, rebates, and

growth of skill training (personal communication, 24 th March 2019).

As I walked further down the pathway, I spotted another large carpet store. The voice

of Madam Noor Jehan could be faintly heard as I stepped into the shop. I noticed that

the carpets here were not put on display but were stacked in a clean manner and covered

with large cloths. Mr. Malik, the owner of this store, has been in this business for more

than 40 years. He also agreed that there has been no response or support from the

government. They instead keep imposing taxes and have made the rebate rate zero. He

pointed out the efforts of the government of India in encouraging their cottage

industries. He stated that the carpet retailers and exporters need and want government

support, as this is not only an art in need of saving but also a source of livelihood which

is diminishing in front of our eyes. He stated his concerns for the labor involved in

carpet making. How can they afford basic necessities if the only work they know is not

being appreciated? One major issue put forward by the labor he is in contact with is the

increase in petrol costs, and his inability to increase the costs of carpets as quick as the

increase in petrol rates. He also expressed the need for the government to remove

carpets from the category of textiles and place it under cottage industries, which would

lead to fixed taxes. He added that exhibitions should be held locally in place of foreign

exhibitions, to which local craftsmen cannot afford to go. Furthermore, he also

highlighted the need for funds and programs to improve labor skills (personal

communication, 24th March 2019).

I decided to venture further around this vicinity. I proceeded towards Abdullah Haroon

Road, as the heat seemed to be more intense. From a few feet away, I could partly see

the glass windows of Habib Carpets as I waited for the traffic to disperse. Two large

carpets, about ten feet tall, stood tall and proud behind the glass window as it glistened

14
with sunlight. The one on the right appeared to be a Ziegler carpet of a dull black

background, consisting of beige and pink vegetal motifs, encapsulated by a thick pattern

of contrasting floral designs. The other appeared to be a Persian design, it’s each crevice

filled with floral motifs as the subtle light blue hues intertwined with a rich brownish

red tone. The intricate patterns and designs, mixed with the captivating color patterns,

produced a magnificent sight that would halt one in their tracks. Yet, this grandeur

remained unacknowledged in the hustle bustle of Abdullah Haroon Road. The jarring

sounds of breaks and horns broke my train of thought, and I walked towards Habib

Carpets.

Large piles of rolled carpets greeted as I stepped in. At a second glance, I noticed that

the shop was quite disorganized, with scattered piles of rolled carpets decorating the

wooden floors. Towards the far-right corner of the shop, Mr. Hassan sat behind a large

oak desk, as he closely observing a tray of stones. His shop has been in this location for

the last 50 years. His carpets come from Lahore, Peshawar and Interior Sindh. With an

elevated tone, he began by telling me about the art of hand knotting and vegetal dyes,

but his tone went towards one of disappointment as he exclaimed “Beta, ab log is ski

qadar nahi karte” (Child, now people do not appreciate it). On inquiring about the

decline in handmade carpets, he stated that in the past 45 years, the demand for

handmade oriental designs has reduced. He further stated that machine-made carpets

have taken over handmade ones, in terms of both designs and cost. He expressed

concerns similar to the previous vendors I interviewed, however, he added that websites

such as Ebay have taken over the interaction vendors had with customers. Another

complaint he voiced was regarding exports on credit. Pakistan exports carpets on cash,

whereas India exports carpet on credit. This refers to being paid in cash or credit when

an item is exported. Pakistani exporters are paid on credit, and often this credit is not

15
paid back on time and is delayed. He concluded by stating that there is nothing exporters

can do except wait. “My family tells me to leave this line of work, but have an

experience of 50 years, I am currently 68 years old and I am a master my work, I can

tell anything and everything about a carpet” (personal communication, 24th March,

2019)

Other interviews I conducted expressed similar grievances and stressed the fact that

they have been in this business for as long as they can remember and do not know any

other work. Carpets are not only their passion and source of income, but also a cottage

industry that needs to be taken care of. Due to these reasons, almost all shop owners

presented sheer disdain towards the government and hoped that improvements would

be made.

Discussion

According to the findings collected through qualitative interviews of the carpet

exporters and retailers present in Saddar Market, local and international consumption

of Pakistani handmade carpets has rapidly deteriorated over the past 20 years. Vendors

have been involved in this business almost all their lives, while their shops have been

in Saddar for more than 20 years (not necessarily the exact location, but the same

vicinity). All expressed mutual concerns when asked about the decline in carpet export

and consumption. Child labor was dismissed as being media propaganda, and it was

claimed with confidence by 2 interviewees that bonded child labor has indeed ended.

The consumption of machine-made carpets was also cited as a potential reason, due to

the diverse designs, quick production and low prices. However, machine-made carpets

diminished the value of the craft itself and the skills that go into its production. The

reason prevalent and discussed throughout each interview was government policies

16
towards the carpet industry and their consistent neglect. Each retailer discussed the lack

of rebates, incentives, skilled labor, imposition of sales tax and the absence of any other

type of support from the Pakistani government. Another crucial point discussed was the

evolution of the role of ‘karigar’ (craftsmen). It is the retailers who have come to control

the carpet industry, and the role of the craftsmen has reduced. It is up to the retailer to

provide for the craftsmen, alongside dealing with the competitive carpet industry.

The findings put forward a detailed analysis of the scenario at play. It appears evident

that the Pakistani carpet industry has faced a decline due to the constant absence of

effective and successful policies and their implementation. The government has made

little to no effort when it comes to polishing the skills of our craftsmen, or providing

any schools/programs through which Pakistani laborers can compete with the designs

being produced internationally. It takes up to5 years for a handmade carpet to be

produced, during which time the labor needs to be provided with support. The

government has made no attempt to fund the labor or provide any incentives which

allow them to adjust to the increasing prices of necessities such as petrol. Furthermore,

the absence of rebates, and the imposition of sales tax on an item which is declining,

only fuels its decline further and places a burden upon the retailers/exporters.

Additionally, the success of carpet industries of other countries was also brought up

frequently. India was mentioned by several retailers as having the most effective

policies when it comes to cottage industries.

David Harvey’s (2000) theory of time-space compression highlights the modernization

and globalization that the world has reached. The world has shifted from Fordism to

flexible accumulation, a change “accomplished through the rapid deployment of new

organizational forms and new technologies in production” (p. 284). Under flexible

accumulation, capital and products are both mobile and fluid, not retained by borders.

17
This is a direct result of technological innovations and advancement such as ATMs or

shipping vehicles, both of which allow the transfer of capital and manufactured items.

Harvey claims that the transformation of capital from physical money to plastic and/or

electronic money has allowed rapid consumption. A time and space compression has

occurred, characterized by an acceleration in capital transfer and in consumption.

Spatial adjustments in the time of flexible accumulation have also redefined and

collapsed the concept of ‘space’ and ‘distance’. Technological advancements have

allowed the vastness of ‘space’ to be reduced with the help of air freights, telephone

lines, shipments, etc. Satellite communications and televisions allow the transfer of

various images at any distance. In short, we have “witnessed another fierce round in

that process of annihilation of space through time that has always lain at the center of

capitalism’s dynamic” (p. 293). The world is more connected than ever, which leads to

increased trade and revenue flow as goods are exported from one country to the other.

In this age, capital becomes immaterial and “volatile” (p. 297) whereas the concept of

space diminishes.

According to a study by Bushra Yasmin and Saba Altaf (2014), some of the factors

hindering the growth of the carpet industry are reduction in rebates, incentives

accompanied by high-markup rates which is troublesome for carpet exporters.

Furthermore, the use of “obsolete production methods” (p. 126), dependence on manual

manufacturing methods (while India and China rely on modern technologies), lack of

skill development, all contribute towards the poor production and performance of the

carpet industry. This study concludes that the potential for Pakistan’s carpet industry is

quite high, however, to utilize it the government must introduce subsidies and new

methods of production and design.

18
A report by National Bank of Pakistan (2018) on Pakistan’s industries and their

performance stated that the carpet industry lacks quality control programming

infrastructure. It highlights that to improve the carpet sector the government needs to

provide long term loans and set up training centers in order to develop a sustainable

brand for Pakistani carpets. Furthermore, the issue of rising prices of raw materials, as

pointed out by Mr. Malik, also contribute to the declined. The prices of wool, silk and

other raw materials are on the rise, but worker wages remain stagnant (Hussain, 2018).

Another study by Mehmood (2005) found that Pakistan’s top exports belong to non-

agricultural sector, however, it has failed to move from low value added to technically

intensive high value-added manufacturing. The economic well-being of Pakistan

depends on the extent to which the non-agricultural sector remains competitive and

contributes to economic growth, exports, investment and employment.

A report published by National Bank of Pakistan (2013) also cited the lack of modern

machinery and innovation present in the Pakistani Carpet Industry and highlighted the

need to eradicate this shortcoming in order to progress.

The above works correlate with the information gathered through the interviews, where

vendors touched upon issues such as lack of rebates or incentives, outdated production

methods and skills as reasons for the decline of the carpet industry. The use of internet

and retail platforms such as Ebay was brought up during an interview, highlighting how

the method of consumption has evolved in recent years. As Harvey discusses, modern

times are characterized by fast consumption and mobile capital. Hence, the need to

reform the carpet industry appears evident.

Moreover, due to the intensification of the time-space compression, labor is also

required to develop. For them “this all implied an intensification (speed-up) in labor

processes and an acceleration in the de-skilling and re-skilling required to meet new

19
labor needs” (Harvey, 2000, p. 285). A recent Economic Survey cited “shortage of

skilled labor force and failure to cope with the changing trends in world markets has

affected the carpets demand and exports” as reasons for the decline of the carpet

industry (National Bank of Pakistan, 2018, p.141). Harvey discusses the need to reform

the labor in order to keep up with the changing atmosphere. Thus, “deskilling and re-

skilling” is necessary for the Pakistani labor, who are currently unable to produce

carpets which are able to compete in foreign markets. Due to lack of design schools or

programs to polish labor skills, Pakistani labor is unable to produce innovative designs

able to compete with foreign labor. Interviews conducted with carpet retailers highlight

the lack of skills in the Pakistani laborers, who are easily overpowered by machine-

made carpets and foreign carpet markets.

During the interviews, India’s carpet industry was frequently brought up and compared

to that of Pakistan. Vendors in Saddar believed it to be an example to the Government

of Pakistan when it comes to regulating and promoting cottage industries. According to

Carpet Export Promotion Council India, India holds 40% of the share in the global

export of handmade carepts and stood at USD 1,427.00 million in 2017-18. The

government of India set up the Carpet Export Promotion Council (CEPC) in 1982 to

promote carpet exports and acts as a meeting point between the government and

exporters. It identifies potential markets, conducts promotional exhibitions in and

outside India and also provides financial assistance to new exporters for enabling their

participation in the fairs abroad (CUTS International, 2009). Under the new foreign

trade policy 2015-20, the Government of India introduced the Merchandise Exports

from India Scheme (MEIS), under which handmade carpets are provided with

merchandise exports and are supported by EU, US and Canada (Merchandise Exports

from India Scheme, 2015). A decade ago, India had an annual carpet export of USD

20
300 million which climbed to USD 8 billion in 2015-16 due to incentive laden packages

to boost carpet exports (National Bank of Pakistan, 2018).

The Indian Minister of State for textiles, Ajay Tamta, stated that the Ministry of Textiles

has signed memorandums with the Ministry of Skill Development to work on upgrading

labor skills, while two of these memorandums dealt with the provision of education and

subsidized loans to weavers at the rate of 6% (Tamta, 2017). He also stated that the

government would provide 90% subsidy if weavers wish to set up their own handlooms

(Tamta, 2017). In order to promote exports and manufacture, mega clusters have been

set up by the government at Mirzapur-Bhadohi and Srinagar in order to better equip the

weavers to produce carpets (IBP, 2016). Furthermore, in a bid to boost the exports of

the carpet industry, the government announced 3% interest equalization scheme on pre-

and post-shipment rupee export credit 2015, for 5 years (Mathew, 2014). It is also

important to note that Pakistani carpets are generally superior to those from India and

China, but cheap labor, low cost raw material and low utility charges in India and China

provide them with an edge over Pakistan (Yasmin & Altaf, 2014). Moreover, India has

also introduced training schemes and programs in order to equip their labor with the

skills required to produce carpets to feed the global demand. India is able to produce a

diverse range of carpets, such as hand tufted or loom made, whereas Pakistan has not

ventured beyond hand knotted carpets, due to which India’s potential in the carpet

market is much higher than that of Pakistan (Srivastava & Goswami, 2007). The Indian

government has indeed worked towards eradicating any hurdles which would stand in

the way of the global exports of their handmade carpets. It has provided the labor with

the skills and subsidies needed to weave, whereas the exporters are provided with

enough incentives as well. Pakistan’s government has not taken any such step to

promote the carpet industry. It is estimated that Pakistan has lost exports worth more

21
than USD 450 million to India as it is unable to keep up with the changing trends

(Hussain, 2018). India has equipped its cottage industry with the facilities and skills

required to compete and succeed, leading to India’s dominating position as an exporter

of carpets.

Limitations

This research has certain limitations. In terms of sampling, the method employed is

purposive sampling and the carpet retailers in Saddar have been interviewed. My

research has not included the views of carpet retailers/exporters located in any other

vicinity or city. There is substantial academic data available in regards to my topic,

however, there is no ethnographic data present.

This research is mainly qualitative and did not produce any quantitative results. My

research does not discuss the point of view of the carpet weavers themselves, but deals

mainly with the exporters and vendors, and the Government of Pakistan. This research

is a small-scale study, which limits the amount and depth of data produced.

Conclusion

This research aimed to assessing and demonstrating the current condition of Pakistan’s

carpet industry by presenting academic data alongside ethnographic data. This data was

then analyzed through Harvey’s theory of time and space compression to explain the

evident decline in the export and consumption of Pakistani handmade carpets. It was

found that the Pakistani carpet industry suffers from lack of effective government

policies and efforts taken to equip the industry with skills needed to compete with

foreign markets in current times. Ethnographic interviews correlate with the academic

data provided and denote the lack or absence of factors such as rebates, incentives,

22
design programs, and many more needed to improve the state of Pakistan’s carpet

industry. Just like other cottage industries, the carpet industry is imperative for the

growth of the country’s economy. It is not just a large source of Pakistan’s foreign

exchange earnings, but also a source of livelihood to those residing in the rural areas. It

is crucial for the government to take note of its drastic decline and make efforts to tap

into the great potential the carpet industry offers and utilize it to improve the economic

conditions of Pakistan.

23
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 APPENDIX A
INTERVIEW QUESTIONS

These open-ended questions were asked in the interviews with carpet retailers and
exporters.

How long have you been involved in this business?

What do carpets mean to you?

What type of carpets are in demand?

How is the current situation of carpet consumption locally and internationally?

What is your opinion of the decline in carpet exports?

Do you think machine-made carpets have affected the consumption of hand-made

ones?

To what extent does the government’s role matter?

What is your opinion about foreign carpet industries and their governments?

How have the labor responded to this decline?

27