Kabul Carpet Export Center: Progress Made Toward Self Sufficiency But Critical Sales, Revenue and Job Creation Targets Have Not Been Met
Abstract
Afghanistans handmade carpets are known worldwide for beauty and durability. In 2018, carpet sales accounted for 2.5% of the countrys total exports.2 Decades of instability and its effect on the Afghan economy has resulted in Pakistan receiving many of the benefits of the Afghan carpet industry. Pakistani companies created a sales strategy that uses the skills of the Afghan weavers in Pakistani refugee camps by providingthem the yarn for the rug on credit, and later finishing and packaging the rugs for export with the label Made in Pakistan. The relationship continues to flourish even after millions of Afghan refugees (among them carpet weavers) returned to Afghanistan after 2001, when the United States-led coalition forces toppled the Taliban regime. The need for capital to buy wool, a dearth of the skills needed for proper packaging, excessive customs red tape, and a disconnect between Afghan manufacturers and the global carpet industry are critical factors that keep Afghan carpet manufacturers tied to the Pakistani wholesalers. Developing the Afghan economy continues to be a primary focus for the U.S. government and the U.S. Agency for International Development (USAID). As part of its efforts to develop the Afghan economy and spur jobcreation under the Afghanistan Job Creation Program (AJCP), USAID has awarded a grant to establish the Kabul Carpet Export Center (KCEC).3 The stated goal for the KCEC project is that it will place the theory and practice of the Pakistani rug making and distribution model directly into the hands of the Afghan carpet trade participants themselves, thereby creating a true Made in Afghanistan product, and creating thousands of jobs.4 The objectives of SIGARs review are to determine whether (1) a fully operational KCEC was established, and (2) sales, revenue and job creation targets were achieved.5
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 2020
- Accession Number
- AD1137535
Entities
People
- John Sopko
Organizations
- Special Inspector General for Afghanistan Reconstruction