October 3, 2003	Friday	Sha’aban 6, 1424

KARACHI, Oct 2: Delay in allowing exceptional flexibility quotas transferable is hurting textile exports as exporters are unable to pay high premium demanded by quota brokers for these categories in open market.

There is a strong resentment among exporters who feel that some hidden hands are creating hurdles, which were directly benefiting quota brokers and barons.

“I fail to understand why orders for allowing exceptional flexibility quotas transferable are not being released by the Ministry of Commerce when in principle a decision has already been taken,” asserted Aslam Ahmed Karsaz chairman Pakistan Hosiery Manufacturers Association (PHMA).

He said when the ministry of commerce has allowed exceptional flexibility quota transferable in category 6 and 9, which have had a positive impact on their prices, then why it was holding up a similar decision for other categories.

If the ministry allows all categories of quotas transferable under exceptional flexibility of ‘swing’ and ‘shift’ around 30 per cent more quota would be available for exporters who would be in a position to meet their export commitments, chairman Pakistan Knitwears and Sweaters Exporters Association Asif Riaz Tata told Dawn.

Despite the fact that a number of textile exporting associations, including Pakistan Knitwears and Sweaters Exporters Association, Pakistan Cloth Merchants Association and Pakistan Cotton Fashion Apparel Association have raised demand for allowing the transfer in all quota categories but all seems to have landed on deaf ears, chairman Pakistan Cloth Merchants’ Association Abid Chinoy said.

“It is very strange that even Quota Supervisory Council has given its recommendation for allowing transfer in all quota categories but still the permission was not being granted by the ministry of commerce,” objected Aslam Ahmed Karsaz.

He further said that there would be ample quota with exporters once the ministry allows transfer in exceptional flexibility quotas and they would not have to buy from open market on high premium.

Furthermore, he said that this will also help in maximum utilization of all categories of quotas of the US and the EU without causing any loss to the government. In case of ‘Over Programming’ he said there is a possibility that the government may have to face difficulty but by granting permission for transfer in exceptional flexibility quotas no loss was possible to any segment including the government.