A US knitwear importer has alleged that the rate of rejection of knitwear exported from Pakistan is around 35 per cent at the point of destination, a claim that has been vehemently denied by the Pakistan Hosiery Manufacturers Association (PHMA).

Shahzad Azam Khan, chairman of PHMA (North Zone), said Pakistani exporters were flooded with orders from brands such as Chaps, Tommy Hilfiger and Gap - companies that would not buy from Pakistan if the rejection rate were so high.

He said quota utilisation in all knitwear categories was over 100 per cent. Many exporters had booked their entire productions for years to come. He added that most importers had their goods inspected by local agents before they were shipped.

Shahzad said Jim Presely, who made the claim, had admitted that his company was fully compensated for the rejected goods.