July 5, 2003	Saturday	Jumadi-ul-Awwal 4,1424

KARACHI, July 4: Delay in release of blocked carry over quota and over programming (OP) by the Export Promotion Bureau (EPB) is crippling exports because exporters of value-added textile goods are reluctant to book fresh orders with foreign buyers.

On the other hand quota prices of many categories held by quota barons and brokers have gone sky high thereby hurting genuine exporters who could not meet the high cost and are losing export market.

As per past practice and bilateral agreement each exporter is allowed 11 per cent carry over from his previous year’s unutilized quota. Similarly, an over programming (OP) up to 10 per cent which is adjustable against next year’s quotas is also allowed in each category to ensure maximum exports.

The long delay of over three months in releasing of blocked carry over quota, if at all is benefiting the speculators and quota barons who have taken the prices of most of the ‘hot cake’ quota categories sky-high, thus damaging export trade, lamented a leading exporter of textile made-ups.

In the absence of permission with regard to over programming exporters are unable to procure orders and even could not plan ahead of time particularly when less than six months have been left for the expiry of quota period.

The chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Zubair Parekh told Dawn that presently his member exporters are being deprived of exporting two fast moving categories — pants and shorts in category 6 of European Union (EU) and category 347 of the US. Since they do not hold quota, therefore, they are reluctant to accept orders for the fall and winter season, he added.

Despite the fact that several meetings and long discussions took place between the Prgmea and Quota Supervisory Council (QSC) and all sort of calculations along with evidences have been verified but still neither the Export Promotion Bureau nor the QSC are ready to reach to any conclusion for the release of blocked carry over quota or even allow over programming as per the past practice, Prgmea chairman maintained.

Zubair Parekh said that members and chairman of QSC privately acknowledged that Prgmea quotas’ visa calculations are correct and accordingly indicate that 75 per cent of the OP can be released along with compensation to those exporters who were forced to use their 2003 quotas for shipments made in 2002, can be accommodated, and 50 per cent of the regular carry over can be allowed without exceeding the quota ceiling but still no decision was being taken.

Similarly, Pakistan Hosiery Manufacturers Association (PHMA) chairman (Sindh-Balochistan zone), Aslam Ahmed Karsaz said his members are also facing difficulty in exporting fresh orders, particularly in ‘hot cake’ categorise of 338 and 339, men’s knitwear (tops) and ladies knitwear (top) USA.

He said our members have a lot of orders but as they do not hold any quota they could not start their production, which needs a lot planning ahead of shipment schedule. He said this is causing a national loss and if one thinks that some good results will be achieved by holding back the release of OP and carry over quotas he lives in fools paradise.

Former chairman Pakistan Bedwear Exporters Association (PBEA) Shabir Ahmed said that bedlinen exporters are unable to meet their shipments as the quota rates in the open market held by brokers and quota barons have shoot sky-high.

He said the category 20 (bedlinen) rates about two to three months were at Rs30-40 per kg but the same have scrambled to Rs120 per kg. Shabir Ahmed told Dawn that he had written a letter to the commerce minister to immediately convened a meeting with exporters and should personally intervene to resolve such a sensitive issue which is causing sleepless nights to exporters and is likely to result in colossal national loss.

As a result of indifferent attitude of the EPB towards the issue, he said, the rates of these categories in the open market have gone sky high which are directly benefiting quota barons and quota brokers but are damaging country’s exports.