Pakistan's textile industry, represented by a large contingent of 180 exhibitors at the recent Heimtextil fair, the world's largest home-textile show, urged India to open up its market to Pakistan's textiles and use trade as a "confidence-building measure" between the two countries.

Bashir Ali Mohammad, the chairman of a Karachi-based Gul Ahmed Textile Mills Ltd. and referred to as the "dean" of Pakistan's textile industry, said that he would like India, as the largest country of South Asia, to show "magnanimity" to its smaller neighbours by opening up its market and increasing trade with them.

"After all, trade is the best form of confidence-building measure," he said in an interview with this correspondent in Frankfurt.

Facing a sharp decline in its textile exports attributed to the global economic downturn in its traditional markets - textiles make up some 60% of Pakistan's exports - Pakistan's textile industry needs new markets. India's 1.1 billion strong market is a natural magnet for Pakistan's textile exporters but, as many exhibitors lamented at Frankfurt, "politics comes in the way".

The chairman of Gul Ahmed Textile Mills Ltd. also voiced "deep concern" over Pakistan becoming a net commodity exporter. "Pakistan is today exporting commodities such as yarn, cotton, etc. to a number of Middle Eastern countries such as Jordan, Egypt, etc. which are processing them and then exporting the finished products to the US and other markets," he said.

With the Western markets ordering less volumes from Pakistan because of the downturn, many Pakistani companies were responding with a strategy of lean management. Also, Western buyers were reluctant to travel to Pakistan because of travel advisory warnings.

"Yes, we have experienced some decline in orders and we are responding with a strategy of lean management. We are cutting costs and becoming more efficient. That's the way to react in such a situation," Bashir added.

Pakistani textile manufacturers have been saying that the law and order situation in the country is also not satisfactory, and foreign buyers are reluctant to visit Pakistan. Overall, the country's textile exports stood at US$ 5.137 billion during the first half of the current fiscal year, compared to US$ 5.228 billion in the same period of 2007-2008, representing a decline of $ 91 million.

On a month-on-month comparison, Pakistan's textile exports declined by 4.10 percent to US$ 720.378 million in December 2008 against US$ 751.212 million in December 2007. Textile exporters said that six textile products - raw cotton, cotton cloth, cotton carded, knitwear, towels and made-up articles - surged during the period under review, while exports of cotton yarn, readymade garments, bed wear tents, canvas and tarpaulin, artificial silk, synthetic textiles, etc. declined.

Another Karachi-based textile mill, the Al-Karam Textile Mills Ltd., said that it could absorb the shock effect of the downturn because of its "extensively diverse product lines", as the company's director Mehmood Ahmed explained. "The downturn has had some effect on our exports but because of the diverse character of our group, we have been able to absorb the shock impact," he said.

Al-Karam, which has been exporting to India, wants greater trade between India and Pakistan. Ahmed said that his company has business ties with India's Bombay Dyeing group which is interested in Al-Karam's jacquard and bedding products.

"We have had talks with Bombay Dyeing on intensifying cooperation which may not necessarily take the form of a joint venture but we will work closely with them to market some of our products which reflect our strength," Ahmed said.

The Pakistani textile industry is passing through a process of consolidation, with the smaller and inefficient companies being the first to be wiped out. Some of the bigger companies are, however, resorting to flexibility and following trends in vogue. Al-Karam, for example, is going "green" by using cleaner technologies and reducing pollution.

Another company called Yunus Textile Mills Ltd., Karachi, a US$ 210 million export turnover company supplying bed linens, comforters, accessories, home textiles, etc., acknowledged that Pakistan was beginning to feel the effects of the downturn.

"Being a small player in the global economy, Pakistan did not immediately feel the pain of recession but the trickle-down effect is being felt now," admitted Altaf Gul Muhammad, the company's general manager (operations). He revealed that his company had experienced "very minimum reduction" in orders.