LAHORE: The textiles industry has cautioned the government to ensure a ‘level-playing field’ in bilateral trade with India.

“Pakistan's textiles have been unable to make inroads into the Indian market. It is also unlikely in the near future because of massive subsidies being offered by the union and state governments to the Indian textile industry,” said SM Tanveer, chairman of Aptma-Punjab, on Wednesday.

“Let us first identify government interventions, subsidies and support available to the Indian textile industry against Pakistan before we liberalise bilateral trade.”

Industry sources complain that the ‘subsidized’ Indian cotton, synthetic yarns and synthetic fabrics are already being ‘dumped’ in Pakistani market.

“Textiles worth several hundred million dollars are being brought into Pakistan via third countries,” a synthetic yarn producer told Dawn.

“We want the government to hire an international consultant to conduct a competitiveness study of all the sub-sectors of the textile industry to expose the union and state incentives enjoyed by the Indian textile industry before we open up our borders for them,” Tanveer argued as Islamabad is contemplating granting ‘non-discriminatory market access’ to India.

The Pakistan Textile Exporters Association (PTEA), on the other hand, supports increased trade between South Asian nations to unlock the regional economic potential. In a statement, PTEA chairman Sheikh Ilyas Mahmood said it is time to “focus on the Asian markets for boosting our exports.”

He urged the government to take measures to address energy shortages, lack of infrastructural facilities and other issues facing the textile manufacturers.

“We need resolution of all these issues before we can compete with our rivals when bilateral trade opens up.”

Amir Fayyaz, a textile manufacturer who sells his fabrics to leading American and European brands, said:

“We are in favour of unfettered trade with India because it will give us a huge market for our products. But that will be possible only if we are also given a leveled ground to play.