Pakistan is to push up its export of non-quota textile products to the US and the European Union (EU) after the quota trade is abolished on January 2005.
The Quota Supervisory Council (QSC), at a meeting with Abdul Aziz Memon in the chair, requested the textile associations to compile a report on the export of non-quota items, taking into consideration the competitive price factor with regard to its competitors.
Stressing the need for protecting export of non-quota textile items to the EU and the US, they observed that at present there was quota on these Pakistani items for the buyers of the other countries, therefore once the quotas were lifted, Pakistan's edge in these items would go.
The QSC members expressed concern that more than three months had passed, but the Ministry of Commerce had not approved amendments to the SRO as suggested by the Council.
The meeting noted that the exporters were keenly looking for the ministry's help before entering the quota-free year of 2005.
About the allocation of 4,000 tonnes of "exceptional flexibility" quota for the EU, the Council recommended that the views of textile associations on the basis of allocation should be sought.
The QSC recommended that the last date for the acceptance of cases of carry-over should be extended till April 30 to accommodate the late-comers. The earlier date for the submission of applications was March 31.
The matter of placing First Come First Served (FCFS) quantities against swing in the US was discussed in detail. It was recommended that the swing quantity received from the US might be placed on the FCFS after allocation against performance.
The Council also discussed the issue of allowing over-programming in 2004 and unanimously agreed to ensure that over-shipment did not take place in any case.
It was decided that before allowing over-programming, views of the textile associations should be sought.
The issue of exemption of security deposit for the last quarter of the quota year was also discussed and it was decided not to allow exemption.
The QSC requested the Ministry of Commerce to decide on the issue of availing of the flexibility without donor.
The Council also discussed the issue of refinancing and it was decided that the Export Promotion Bureau (EPB) might be requested to approach the State Bank for extending the refinancing facility to the indirect exporters of the yarn and cotton.
The meeting was attended by the QSC members, Qayyum M. Sayeed, Azhar Elahi and Tahir Jahangir.