KARACHI, Oct 26: The additional quota allowed in category 20, by the Ministry of Commerce for export of bedlinen to European Union (EU) member countries has exposed the country to an embargo from the European Commission (EC).

An emergent meeting called on Saturday by the Quota Supervisory Council (QSC) of EPB witnessed sharp reaction from exporters who demanded action against the officials who took the decision of allowing additional over programming in category 20, without consulting exporters, a participant of the meeting told Dawn.

The meeting was primarily called to suggest a way out from the current impasse because if the things are allowed to drift on there are strong indications that the embargo from EC is around the corner.

The ministry of commerce in July 2002, directed the QSC to go for over programming up to 10 per cent in category 20. Despite strong resistance from two members of the QSC the decision of the ministry prevailed. The same act was repeated in September and the QSC once again has to submit under the pressure of the ministry and as a result allowed another 10 per cent in this category.

The situation suddenly became grim early this month when the EU released figures of the category 20, showing as high as 76 per cent arrival. However, by the time it was too late because the QSC had already issued visas (export) in the category up to 80 per cent. If adding to this around 10 per cent of shipments which are already in high seas the total arrival would be around 90 per cent. Consequently, exporters in the meeting expressed their fear that the embargo from the EC would be in the first week of December.

The exporters alleged that all this has been done to oblige some exporters without taking into consideration how much damage it will cause to the image of the country and its exports specially when EU has been kind enough to give Pakistan 15 per cent extra market access.

According to another participant the exporters questioned that when the QSC allowed only up to 5 per cent over programming in other categories such as Cat 6 and 9, with both having high arrival then as to why 20 per cent over programming had been allowed in category 20.

Exporters also took to the task the QSC representative on bedlinen Azhar Majeed and asked the QSC chairman Aziz Memon, if the ministry has put pressure, he should have put all the facts before the high- ups of the ministry.

However, the meeting concluded without reaching to any consensus over the issue and the QSC chairman has again called another meeting on Tuesday, because serious nature of issues are going to be confronted by the exporters who have already shipped their consignment.

Exporters, requesting anonymity, told Dawn that this will result in pushing up the quota prices of category 20 sky high, secondly, if EU does not impose embargo, it will ask that the over-shipments to be called back and shipped in the next quota year starting from January 1, 2003.