KARACHI, Aug 12: Exporters have criticized the Export Promotion Bureau for allocating the textile quota on 'first-come-first- served (FCFS) basis' for shipments starting from August 15.

"This is going to benefit quota barons who will manipulate the situation to corner Rs90 million worth of quota in one stroke," alleged Tahir Jahangir, a exporter and member of the Quota Supervisory Council (QSC).

He said that short time given for availing the quota proved that only 'strong ones' would be in a position to benefit from the condition. The EPB's Textile Quota Management, through a public notice appeared in the print media on August 11, offered the textile quota allocation of the US, Canada, the EU and Turkey categories on the FCFS basis from August 15, 2004 and onwards.

But, Mr Jahangir has contested that 14th August is a public holiday, therefore, only two days are left for the exporters to get their consignments ready if they want to avail the quota.

"In such a situation only those exporters who have access to the inside information about the quota will be in a position to avail of the opportunity as they may have already got their export consignments prepared in advance," he added.

As a result of this, genuine and small exporters with limited resources would be deprived of the chances and only quota barons would be in a position to lift and consume most of the quotas, he argued.

Responding to a question, Mr Jahangir said the figure of Rs90 million had been achieved after taking the average price of the last quota auction and multiplied it with the quantity being offered on the FCFS basis. This amount of Rs90 million could have even gone into the national exchequer through the auction of this quantity of textile quota, he added.

He said in the last QSC meeting, there was no mention of category 363 USA, category 4 and 9 for the EU and 42/A for Canada. The knitwear association, he maintained, raised the issue of category 5 only in the meeting. This fact, Mr Jahangir, said could be verified from the draft of the meeting that has been signed by the QSC chairman.

S.M.A. Rizvi, patron-in-chief of the Towel Manufacturers' Association of Pakistan, said it was strange that fast moving and expensive category like 9, 363, 42A, of towels and 4 and 5 of knitwear were being offered on the FCFS basis. Historically, he said only those categories, which are slow moving and there was a possibility of under-utilization, were given on the FCFS basis.

Mr Rizvi said that the quota should be distributed on pro rata basis, and if not, then it should be auctioned so that Rs90 million goes into the national kitty and not into the pockets of those who are already bulging.

Pakistan Readymade Garments Manufacturers and Exporters Association chairman Tahir Aziz said as to why the EPB had held back this quantity of textile quota and why it was not distributed earlier in whatsoever method?

Mr Aziz said that this quota should have been given under the Over-Programming or to the performance-holders as both these methods ensured transparency. But under the FCFS basis, it might even benefit single man, he added.

Pakistan Hosiery Manufacturers Association vice-chairman Akhtar Younus said the FCFS allocation system was bound to benefit a few and genuine and small exporters would fail to get any share. Under this system, he said only strong and quota barons would succeed in getting large chunks of the quota.