KARACHI, Aug 25: The Export Promotion Bureau (EPB) has withdrawn the condition of utilization of ‘shift quota’ before availing over programming for the quota year 2003, by textile exporters.
Some businessmen believe that it was only after the issue of exporters discontent over condition for over-programming was reported on August 21, 2003, in this paper that the EPB came under pressure. “As a result of this story the high-ups of the EPB removed the additional condition,” said an exporter.
The bureau through its earlier notification dated August 16, 2003, put a condition for availing Over Programming quota. This infuriated the exporters who smell some ‘foul play’ and agitated over the matter.
It may be mentioned here that the Ministry of Commerce through its directives dated August 11, 2003, to the Quota Supervisory Council (QSC) and EPB did not lay this condition of utilization of ‘shift quota.’
The additional condition pushed quota prices sky high.
In the past, condition for availing ‘over-programming’ was restricted to utilization of performance quota and quota lifted by exporters through government auction.
The exporters even alleged that the TQM and QSC are protecting the interest of quota brokers at the cost of country’s exports. They further said that despite having export orders the exporters are unable to enter into export contracts as they could not purchase quota from open market at a very high cost.
Exporters further said that until last year the EPB used to give ‘shift quota’ from its own stocks to the exporters and never put such a condition, which could be damaging to exports of the country.
However, the EPB officials, realizing their mistake, removed the word ‘shift’ from para 4 of their earlier notification (August 16, 2003), which is now to be read as: “Over-programming should be availed, only after 100 per cent quotas of that category, including carry over and swing, have been utilized by an exporters.”
The chairman, Pakistan Hosiery Manufacturers Association (PHMA), Aslam Ahmed Karsaz said had the EPB not removed its earlier conditions for utilization of over-programming, it would have hurt country’s exports.
He said with only one quota year left before January 1, 2005, when the entire clothing and textile markets of the world would be free of restrictions, exporters were endeavouring to capture maximum number of clients so that they could establish themselves firmly ahead of new era where quality, prompt delivery and competitive edge would matter.