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  • Jan 2nd, 2005
  • Comments Off on End of quota regime: Textile consignments worth millions stuck up at airports
Textile exports under post-quota regime ended in fiasco on Friday-Saturday midnight and export consignments worth millions of rupees are stuck up at Karachi, Lahore and Islamabad airports. Affected exporters strongly demanded of the government for immediate implementation of public notice/circular of the Export Promotion Bureau (EPB) dated November 26, 2004 to save them from the forthcoming financial crisis.

Talking to newsmen, Dr Khurram Tariq, former central chairman, Pakistan Hosiery Manufacturers Association (PHMA), said exporters had been trying for the last shipment of their categories 338, etc, but due to wrong strategy of the EPB, they could not clear their consignments.

He said not only exporters had to face the loss of millions of rupees but the goodwill of Pakistani exporters had also been adversely affected in the international market.

He said in view of the prevailing situation, exporters had presented many proposals and suggestions to concerned authorities but the same had been ignored for unknown reasons.

On November 26, the EPB had announced procedure of over-shipments of various export quota categories including 338 through a public notice/circular under which from December 1 to January 20, 2005, export consignments were to be carried to New York from Karachi airport by the PIA.

In the meantime, the EPB advised exporters to get their quota pledged under swap. Exporters, who were agreed to this suggestion, were asked to get their quota categories changed from 338 to some other categories.

When the categories were changed and re-allocated, the same were found in less quantity on one hand, while the price of re-allocated categories had fallen to zero-rate in the market due to difficult and baseless procedure on the other hand, he explained.

When all this was going on, Dr Khurram Tariq said, the EPB suddenly issued a new notice on December 23, which appeared in various newspapers on December 26, binding exporters to deliver their consignments and shipments, etc, at Karachi airport up to December 31, instead of January 20, 2005, which would be lifted by the PIA cargo plane to New York.

Consequently, hundreds of consignments were carried by exporters to Karachi airport while several shipments could not reach Karachi due to rough and rainy weather and were stuck up at Lahore and Islamabad and other far-flung areas.

He said having been aware of the fact that there was neither sufficient accommodation at the Karachi airport nor PIA had in a position to lift the entire export shipment, some irresponsible elements tried to forcibly shut the last door of textile quota and the EPB had offered an option through its public notices that they were at liberty to send their shipments by air through their own arrangements and fifty percent concession in freight equal to PIA tariff would be allowed but, so far, the EPB had not informed exporters about the PIA freight.

Answering a question, Dr Khurram Tariq said American buyers were willing to have reconciliation over these categories, but the so-called good governance of the EPB had ruined their entire efforts.

He demanded that this matter should be probed into at a higher-level and elements responsible for this mismanagement should be taken to task.

He also demanded of the government to ensure export of stuck-up shipments up to January 20, 2005 and concerned public notices and circulars should be implemented in letter and sprit with a view to compensate exporters.

He said the government should accommodate exports at the rates of last quota auction price.

Copyright Business Recorder, 2005


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