KARACHI, Aug 20: The ministry of commerce has decided to allow a 10 per cent over-programming in those textile categories where utilization by the exporters has been less than 40 per cent.

On the recommendation of the Quota Supervisory Council and the Export Promotion Bureau, the ministry has extended this facility in those categories where utilization of quota up to July 31, 2004 was less than 40 per cent of the adjusted ceiling.

The ministry of commerce through a notification No 7(7)/ 2001-E.I issued on August 20, has further pointed out that the over-programming can only be availed provided there was not over-allocation in any such category.

The ministry further explained that the basis of allocation of quota will be entitlement plus auction only. The notification referred to the minutes of the 6th and 7th meetings of the Quota Supervisory Council and EPB's views given vide their letter No EPB-1(I)/2004-TQM dated August 12, 2004, under which this decision has been taken.

It further stated that the residual quota balance received on account of the enlargement of the European Union and balance available after distribution to the performance-holders might be given to the performance-holders for those 10 countries on pro rata basis, provided there is no over-allocation in any such category.

The ministry has also agreed to release performance quota blocked in the EU category 5 on account of over-programming availed in 2003, to the extent of 41.77 per cent.

QSC Chairman Aziz Memon told Dawn that the over-programming would help bring down quota prices in the open market and give direct relief to genuine exporters who would like to optimize their performance ahead of the quota-free era from next year.

He expressed the hope that the European Union would give Pakistan exceptional flexibility quota of 4,000 tons when it meets in September. If this quota is given, it will be utilized in 'hot cake' categories to ease the pressure.

The exceptional flexibility quota, if allowed by the EU, would be enough for utilization by the exporters during the September/October period and would help them get extra business at a time when maximum markets had to be covered ahead of the quota-free market, Mr Memon said.

Responding to a question, the QSC chief said once the exceptional flexibility quota of 4,000 tons was received, around 2,000 tons would be utilized for category 4 (T-shirts), which would be 25 per cent of the base ceiling.

Mr Memon said that 500 tons would be given to category 5 (shirts) and 1,500 tons to category 20 (bedlinen). He said all this has been decided after having a consensus from the relevant trade bodies of expiators.