KARACHI, Jan 9: Textile quota exports to European Union (EU) have registered 11 per cent increase in quantity and 25.69 per cent in value during quota 2003, when compared with previous quota year of 2002, EPB sources said on Friday.

Sources said that despite restrictive export policy to avoid over-programming, exports of textile quota items to EU have been increasing over the years, and the quota year 2003 was no exception.

"Consequently, like other countries, a level of over 95 per cent had been reached in utilization of quota in several categories by our exporters, which was inclusive of 5 per cent quantities of carry forward, a quota borrowed from the next year," sources said.

The sources said that entries in Category Pass Books (CPBs) relating to allocation of quota, additions, etc., are all managed by respective associations of exporters. Government on its part issues export licenses after the exporters have already shipped the goods.

In view of the negative effects of over-programming done in past, the government took all necessary measures this year to enhance exports. At the same time the speculative measures were kept under strict watch to forestall over shipments so that the government is not exposed to embarrassment as faced in quota year 2002 on account of over programming and subsequent over shipment.

As a result of over shipment, EPB sources said during early 2003, large number of textile goods were stranded at the EU ports and were later released on government intervention. This averted colossal loss to exports as good would have to be returned to Pakistan.

After the goods went into embargo in 2002, the EU authorities took a very serious stand on the breach of agreement by Pakistan and impressed upon to return goods to Pakistan as the EC Council Regulation No 3030/93, clearly stipulates.

Thereafter, all out efforts had been made to enhance maximum utilization of quotas but without breaching the bilateral agreement with the EU. As a result of this the EU allowed 4000 tons of exceptional flexibility quota in 2003, that was denied a year ago.

The EPB sources further said that the policy measures are finalized in consultation with Quota Supervisory Council (QSC), the representative body of exporters.

However, chairman QSC Aziz Memon said that the Council is having a role of consultative body and its suggestions or recommendations are not binding upon the EPB or its textile quota management. He further said it was up to government (EPB) to accept or reject our suggestion but as the quota come under bilateral agreement, therefore, it has to be handled at government level.