The upholstery sector in Pakistan is in dire need of dedicated industrial zones across the country. Establishment of cottage industrial zones could help promote the handloom, carpet, hosiery and embroidery sectors. With these measures, exports by these sectors could be enhanced by $3.5 billion annually in the next five years.

Upholstery manufacturers are unable to meet the demands of buyers. One reason is an increase in cost of production. There has been a 39 per cent increase in gas and other tariffs. Japan, China and many other countries have established cottage industries to provide a strong base for industrial development with great success. The speedy development of these countries was only due to industrialisation and encouragement to entrepreneurs.

The All-Pakistan Bedsheets and Upholstery Manufacturers Association has expressed concern over the proposed increase in sales tax on exports from two to five per cent, saying the increase in the rate of sales tax will affect the country’s fragile exports adversely and leave a negative impact on the value-added sector. It says keeping in mind the difficulties of exporting units, especially the value added sector, the increased sales tax rate on exports should be withdrawn and the no payment no refund system should be introduced.