Carpet makers threaten to shut business

Carpet manufacturers have cautioned the government that if exporters are included in the normal tax regime, as per budget proposals, all exporters will be forced to shut down their businesses. While expressing concern during a visit to the Lahore Chamber of Commerce and Industry (LCCI) on Tuesday, members of the Pakistan Carpet Manufacturers and Exporters Association, led by Shahid Hassan Sheikh, stated that instead of providing facilities to the export sector, the government had added to their difficulties. Placing exporters in the normal tax regime would push down their revenue and slow down dollar inflows into the country, which would lead to a further increase in inflation, they said. The association warned that the exporters of Pakistan might relocate to countries like the UAE, which were offering Special Economic Zones with business-friendly policies.