20000116

Prgmea suggests

changes in

quota policy

RECORDER REPORT

KARACHI: Welcoming the new textile quota policy, the Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) has urged the ministry of commerce to withdraw the condition for shipment of textile quota reserved on First Come First Served (FCFS) basis by October 31 for those exporters who reserve quota for shipment for 120 days till December 31, 2000.

Bilal Mulla, Chairman Prgmea, South Zone, said in a statement that the textile quota policy announced by the government provides that the last date for shipment of all quota on FCFS reserved against bank guarantee will be October 31, 2000. The policy, however allows exporters to reserve quota for 60 days, 90 days and 120 days and the grace period for shipment of quota reserved for 120 days will expire on November 30, 2000.

He urged the ministry to extend the last date for shipment of FCFS quota till December 31 so that the exporters who have reserved quota for 120 days may continue to make shipment after October 31 and their bank guarantee is not cashed.

Bilal welcomed the textile quota policy clause which provides that quota flexibility will be available to the exporters on the basis of the current year's performance contrary to the existing practice of allowing flexibilities on performance of the outgoing year.

He appreciated the measures provided in the new policy to discourage quota trading, specially the condition wherein 90 percent shipment will be essential on quota passbooks opened with transfer-in of quota. He, however, pointed out that there was no such restriction on exporters having passbooks opened on performance basis which would create opportunities for quota traders. He called for putting some restriction on shipment on passbooks of the performance holders.

The Prgmea zonal chief urged the ministry to continue with the policy of awarding value quota to the exporters during 2000 as has been the practice in the past. He criticised the clause in the policy which provide that the value quota would not be awarded this year and would be given in 2001. The provision indicates that the government preferred income in Pak. rupees through auction of value quota over foreign exchange the exporters would have earned with shipment of value quota.