August 8, 2003	Friday	Jumadi-us-Sani 9, 1424

KARACHI, Aug 7: In the absence of textile quota the garment industry, which utilises trousers quota (category 6) for European Union may soon have to resort to large scale lay offs.

This was stated by the acting chairman, Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) Atiq Kochra to the managing committee members in a meeting convened on Thursday.

The meeting was informed that as the Export Promotion Bureau (EPB) had withheld trousers quota (Cat 6) the exporters are unable to meet their export commitments.

The participants informed that despite having export orders worth millions of dollars, they are unable to fulfil their commitments due to shortage of quota in Cat 6 of EU.

On the other hand, the EPB is not releasing the carry over quotas as well as over-programming quotas, which has pushed quota prices sky high in the open market.

Therefore, it was noted in the meeting that the exporters could not maintain their viability and competitiveness in the world market if they lift quota from open market at a high premium rate of Rs200 per piece.

They observed that as a rule the over-programming and flexibility quota is released by June whereas the exporters are still waiting for the release of these quotas.

The meeting was also attended by Azhar Elahi, acting chairman Quota Supervisory Council (QSC), Naeem Suria member QSC and some other exporters.

The QSC member shared the concern of the woven garment exporters about the long delay in release of over programming and flexibility quota and assured to convey their view to the high ups in the ministry of commerce.