KARACHI, June 9: Delay in allowing utilization of carry-over quotas and over programming by the Export Promotion Bureau (EPB) have pushed quota prices of many categories sky high thereby damaging exports of many fast running textile made-ups.
Under the textile quota policy each exporter is allowed 11 per cent carry over from his previous year’s unutilized quota. Similarly, an over programming upto 10 per cent which is adjustable against next year’s quotas is also allowed in each category to ensure maximum exports.
Exporters said the EPB normally allowed utilization of carry over quotas by March but this time the EPB had not taken any decision in this regard.
Similarly, in the absence of over-programming, exporters were unable to procure orders and even to plan ahead of time particularly when less than six months had been left to the expiry of quota period.
The chairman, Pakistan Hosiery Manufacturers Association (PHMA), Aslam Ahmed Karsaz told Dawn that presently his member exporters were being deprived of exporting two fast running categories — men’s knitwears (tops) and women’s knitwears (top) i.e. category 338 and 339 (US), respectively.
As a result of the EPB’s indifference towards the issue, he said, the rates of these categories in the open market had gone sky high, which were directly benefiting quota barons and quota brokers but were damaging country’s exports.
Karsaz said this irresponsible attitude of the EPB at a critical juncture when only 18 months had been left to the WTO’s quota free regime starting from January 1, 2005, was highly condemnable. What was needed, he said, was to maximise exports to have more market access ahead of quota free era.
The PHMA chief said exporters were holding large orders for these categories but the time was being simply wasted because of irresponsible attitude of the EPB officials. No doubt, he said, exports had crossed $10 billion mark, which was commendable, but efforts for higher targets should continue to achieve self-reliance.
Since the EPB had not granted permission for utilizing carryover quotas and over programming, it had created artificial shortage of quotas in many fast running categories, particularly in Cat-338 and 339, and that was benefiting quota brokers as the prices had sharply risen over the last two weeks.