Amjad Khawaja, Chairman, Pakistan Hosiery Manufacturers Association (PHMA), North Zone, has demanded immediate stoppage of textile quota auction and to distribute the quota to stakeholders to compensate them for huge investments they have made in textile quota export regime.
In a communication addressed to Commerce Minister on Tuesday, he said that textile quota regime is phasing out this year and resulting in opportunities as well as challenges to Pakistan's exporters in the open competition scenario of international trade.
The exporters of value-added garments would be particularly confronted with fierce competition which could sustain or damage their exports, he said. To save the value-added exporters, who have made investments in quotas, from any possible negative impact, the government should work out some via media to compensate these stakeholders, he added.
One such measure could be the stopping of auction of textile quota and distributing these quantities among stakeholders, he suggested.
This, he said, is imperative as this is the last year of textile quota regime and, there being no entitlement on performance basis next year, the quota holders would lose a substantial part of their capital invested in quotas.
Amjad said that such measure would greatly help the value-added exporters to sustain their exports and survive under the new world trade order.