Pakistan's carpet makers eye Rwanda market expansion amid domestic funding woes

Without those disbursements, nothing was happening.
The industry faced a funding crisis that threatened its flagship international exhibition scheduled for October.

From a Lahore conference room, Pakistan's carpet manufacturers reach toward Rwanda and East Africa with visions of new trade corridors, even as the very domestic infrastructure meant to showcase their craft to the world teeters on the edge of collapse. The industry — ancient in its craft, urgent in its need — finds itself suspended between outward ambition and inward constraint, appealing to its own government for the basic funding that would allow it to compete. It is a familiar human tension: the capacity to imagine a larger future, stalled by the unresolved demands of the present.

  • Pakistan's carpet manufacturers are actively courting Rwanda as both a market destination and a gateway into broader East African trade, with a bilateral free trade agreement as the long-term prize.
  • The 42nd International Handmade Carpet Exhibition, scheduled for October in Lahore, is in jeopardy — government funds have not been released, foreign buyers have not been contacted, and the organizing window is closing fast.
  • India looms as a direct competitor, running polished exhibitions with consistency, and any stumble by Pakistan risks sending a damaging signal to international buyers about the industry's stability.
  • Industry leaders have appealed directly to the Prime Minister, finance minister, and commerce minister, framing the funding delay not as bureaucratic friction but as an existential threat to export momentum.
  • Beneath the exhibition crisis lies a structural squeeze: rising energy costs, heavy tax burdens, and punishing freight charges are eroding the margins of one of Pakistan's oldest and most currency-generating export sectors.
  • The manufacturers are caught in a sharp contradiction — globally ambitious, domestically under-resourced — calling for a special relief package in the upcoming budget before contraction, not growth, becomes the industry's story.

In a Lahore conference room, the chairman of Pakistan's carpet manufacturers met with Rwanda's High Commissioner to lay out a serious ambition: entry into the Rwandan market, with a bilateral free trade agreement to follow once a foothold was established. Mian Atiq-ur-Rehman of the Pakistan Carpet Manufacturers and Exporters Association saw Rwanda not merely as a destination but as a gateway into East Africa's broader regional markets. The conversation covered market access, export growth, and the institutional steps needed to turn interest into commerce.

Back home, however, the same leadership was fighting a more immediate battle. October's 42nd International Handmade Carpet Exhibition in Lahore — a global showcase for Pakistani craftsmanship — was at risk of collapse due to unreleased government funds. Atiq-ur-Rehman and Vice Chairman Riaz Ahmed were direct about the consequences: without disbursements, no foreign buyers would be invited, no hospitality arranged, and no exhibition mounted. The clock was running out.

The urgency was sharpened by competition. India runs comparable exhibitions with regularity and polish, and any visible stumble by Pakistan would send an unmistakable message to international buyers. The association appealed directly to Prime Minister Shehbaz Sharif, the finance minister, and the commerce minister, demanding immediate attention.

The funding crisis reflected a deeper structural pressure. Rising energy costs, heavy taxation, and steep freight charges were squeezing an industry that has long been a significant source of Pakistan's foreign currency. Manufacturers called for a special relief package in the upcoming budget — tax reductions, freight incentives, export support — warning that without intervention, the sector faced contraction rather than growth.

The moment carried a pointed irony: an industry looking outward toward Rwanda and regional expansion could not secure the domestic funding to host the very exhibition that might have made that expansion possible. They had products the world wanted. What remained uncertain was whether their own government was ready to help them sell.

In a Lahore conference room, the chairman of Pakistan's carpet manufacturers sat across from Rwanda's High Commissioner and laid out an ambition: his industry wanted into the Rwandan market, and it wanted in seriously. Mian Atiq-ur-Rehman, who leads the Pakistan Carpet Manufacturers and Exporters Association, spent the meeting with High Commissioner Harerimana Fatou discussing how to deepen trade ties between the two countries. The conversation ranged across market access, export growth, and the kind of institutional support that turns interest into actual commerce. Kwibuka Esdras, the Rwanda High Commission's head of finance and trade, was there too, along with other officials. What emerged from the discussion was a clear sequence: first, establish a foothold in Rwanda. Then, once success was proven, push the Pakistani government to negotiate a formal free trade agreement. Atiq-ur-Rehman saw Rwanda not just as a destination but as a gateway—a way to crack into other regional markets across East Africa.

But back home, the industry faced a more immediate crisis. The same leadership that was courting Rwanda was also fighting to keep a major domestic event alive. October would bring the 42nd International Handmade Carpet Exhibition to Lahore, a showcase meant to display Pakistani craftsmanship to the world. The problem was money. The government had not released the funds needed to organize it. Atiq-ur-Rehman and Vice Chairman Riaz Ahmed made their frustration clear at an association meeting: without those disbursements, nothing was happening. No one was contacting foreign buyers. No hospitality packages were being arranged. The clock was ticking, and the exhibition was slipping.

The stakes felt real because the competition was real. India, Pakistan's traditional rival in the carpet trade, ran similar exhibitions with regularity and polish. If Pakistan's event stumbled because of funding delays, the message to international buyers would be unmistakable: this industry was struggling, maybe even losing ground. Atiq-ur-Rehman and Ahmed did not mince words. They appealed directly to Prime Minister Shehbaz Sharif, the finance minister, and the commerce minister. The message was urgent: notice this problem, and fix it now.

The funding crisis was symptomatic of a deeper squeeze. The hand-knitted carpet sector, one of Pakistan's oldest export industries and a significant source of foreign currency, was being crushed by forces beyond the manufacturers' control. Production costs were climbing. Energy prices were punishing. The tax burden was heavy. Freight charges ate into margins. The industry needed relief, and it needed it soon. Atiq-ur-Rehman and Ahmed called for a special relief package in the upcoming budget—tax and duty reductions, cheaper freight, export incentives. Without intervention, they warned, the sector would not grow. It would contract.

What made the moment particularly pointed was the contrast between ambition and constraint. The industry was looking outward, pursuing Rwanda, imagining regional expansion. But it could not even secure the domestic funding to host an exhibition that might have made that expansion possible. The manufacturers were caught between two truths: they had products the world wanted, and they had a government that was not yet ready to invest in helping them sell.

Pakistan's hand-knitted carpet industry is keen to enter the Rwanda market in a significant way and promote trade activities.
— Mian Atiq-ur-Rehman, PCMEA Chairman
Rising production costs, the energy crisis, and heavy taxation have severely affected the industry. The government should take urgent measures to reduce taxes and duties and provide relief in freight charges.
— Mian Atiq-ur-Rehman and Riaz Ahmed, PCMEA leadership
The Hearth Conversation Another angle on the story
Inventor

Why does Rwanda matter so much to Pakistan's carpet makers? It seems like an odd pairing.

Model

Rwanda is a gateway. It's not just about selling carpets there—it's about using Rwanda as a foothold into the broader East African market. Once you establish yourself in one country, the regional networks open up.

Inventor

And the free trade agreement they mentioned—that's the real prize?

Model

Exactly. A bilateral FTA removes tariffs and friction. It makes trade predictable and cheaper. But they need to prove success first. That's why the exhibition matters so much.

Inventor

Which brings us back to the funding problem. Why is the government dragging its feet on money for an October event?

Model

That's the painful part. The government knows the carpet industry matters—it earns foreign exchange, it employs people. But budget cycles move slowly, and priorities shift. Meanwhile, manufacturers are stuck.

Inventor

So they're competing against India while their own government is essentially neutral?

Model

Worse than neutral. India's government actively supports these exhibitions. Pakistan's manufacturers are fighting on two fronts: against Indian competition and against their own resource constraints.

Inventor

What happens if the exhibition doesn't happen?

Model

The signal goes out that Pakistan's carpet industry is in trouble. Buyers start looking elsewhere. The momentum for Rwanda expansion dies. It becomes a self-fulfilling prophecy of decline.

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