KARACHI, Oct 18: Commerce Minister Abdul Razak Dawood on Thursday said that a committee would be set up, which would frame rules for the distribution of 15 per cent textile quota enhanced by the European Union (EU) for Pakistani textile goods.

In an informal meeting with newsmen held in a local hotel the minister said that he would, however, prefer to give this extra quota to new-comers, joint ventures and new industrial units.

He said that the main concern for the government had been the cancellation of export orders by western buyers in post-Sept 11 scenario, increase in cost of production caused by sudden increase in freight rates, war risk charges and rise in insurance premium on export/import goods.

Dawood said that lifting of curbs by EU on import of textile goods from Pakistan by removing duty and increase of quota was an encouraging development, which would provide Pakistan exports a greater access to European market with an edge over competitors.

He said that duty-free imports of textile goods, made-ups, rice, engineering goods and chemical products from Pakistan would work as an incentive for EU buyers/importers, and hoped that it would help reverse the cycle of cancellation of orders.

He said that for the last seven months Pakistan had been holding negotiations with the EU for the removal of textile quota restrictions and cut in tariff.

Referring to war risk charges imposed by world underwriters on ships operating in the region, Dawood said that Pakistan’s ambassador to the United Kingdom was holding meetings with Lloyds and other underwriters, and that he felt that there was reasonably good chance of these charges being withdrawn.

He said that Lloyds was planning to send a team to Pakistan to evaluate the situation on ground, and felt that the imposition of ‘war risk charges’ was unfair and it was one of the factors for making exports uncompetitive in the world market.

The minister said that it had been a dream of exporters to have greater excess to European and other Western markets, and as result of EU’s decision, he said, this had come true. “Now I hope that our exporters will work hard to increase exports,” he said.

Similarly, he said, the government was working to have greater access to the markets such as Australia, Canada and Norway.

Even during his recent visit to the US, he said, a lot of inter- action was made with the officials as well as private sector importers with regard to cancellation of orders.