950820

Export committee for

transparency, equity in

quota distribution

RECORDER REPORT

FAISALABAD: The Special Committee on Exports has proposed that efforts should be made at International fora like Gatt, WTO, ECO, Group of 77, Asean and OIC, to get the quota restrictions abolished as these are in gross contravention of the universally acclaimed norms of free trade.

In its report, which was presented to the Prime Minister of Pakistan, the committee proposed that a fool-proof policy should be evolved to bring about transparency and equity in quota distribution. Textile Quota Management Directorate headquarters should be asked to issue computer printout or transparency print to concerned stations promptly.

At present, the role of over-regulation and quota cuts on minor objections has discouraged the exporters and resulted in a marked decline in quota utilization. The Special Committee has proposed that a complete change should be brought about in the role of TQMD and they should be asked to adopt a promotional attitude.

The committee recommended that the SROs regarding carry-over of quota should be issued promptly. In order to maximize quota utilization, quota items whose utilization during ten months of the quota year (calendar year, i.e. till October 31) has been less than 40 percent should be freed and put on open auction, and their distribution should be carried out on "first come first served basis." Those items whose utilization has been less than 20 percent for three consecutive years, may be got excluded from the quota list and made quota-free through bilateral negotiations with the country concerned.

According to report, Textile Quota enactment had been initiated by the industrially developed countries under the aegis of Gatt through a system of generalized preferences (GSP) and enactment of the so-called Multi-Fibre Agreements (MFA). Apparently, it was a device to help the developing countries by allowing them to enter into their markets. But in reality it was a clever device to impose quantitative restriction on the export of these countries through artificial barriers and shackles of protectionism.

Till the year 1993, Textile Quota Management Directorate (TQMD) was a part and parcel of EPB when its role was, by and large, promotional in nature rather than regulatory or punitive. TQMD was carved out as an independent department in October 1993 and placed under direct control of the Ministry of Commerce with a Director General at the helm of affairs. Since then its role has radically changed into regulatory from that of promotional. It is a natural phenomenon that when the role of a promotional or monitoring agency changes all of a sudden into a hyper-regulatory authority vested with unlimited powers, its efficiency is impaired while apprehensions of favouritism and foul play cannot be ruled out. These apprehensions tend to get stronger when the accounts are not transparent. It is a matter of common observation that when a sub office of TQMD sends its monthly utilization position by computer to the TQMD headquarters, the headquarters does not reciprocate with a complete and uptodate computer feedback. No wonder then that quota management is ironically styled as "quota manipulation" and complaints of misappropriation of quota have travelled from the press to the bench. There is no denying the fact that the two basic principles of equitable distribution and maximization of quota utilization are being floated with impunity in the present set-up.