Pakistan: Textile exporters seek compensation for order cancellation

Pakistan exporters want the government to seek compensation from the U.S. administration for losses suffered since September 11th, after the entire Gulf region was declared a war-risk area, resulting in cancellations of export-import orders and increases in insurance tariffs and freight rates.

Exporters now want the government to seek compensation from the U.S. government in the form of a 50% increase in textile quota ceilings, obtain maximum flexibilities and intra-category quota mergers seek waivers where over-shipments have been made. Exporters say that the movement of goods to and from Pakistan has been subjected to new war-risks insurance premiums of US$100 per 20-ft container and US$200 per 40-ft container. Air freighters have been increased by Rs 5/kg.