ISLAMABAD, Sept 15: Israel is keen to import Pakistani textile items, mainly finished fabrics, for manufacturing made-ups and garments, reliable sources told Dawn on Thursday.

Israel wants to import Pakistani finished fabrics, relatively cheaper than other countries, for using in the manufacturing of textile products at the Israel-Jordan Qualified Industrial Zone (QIZ).

The sources said that under this arrangement, items produced at the zone could be exported to the United States duty free, or at preferential tariffs, from Israel.

When contacted, Textile Industry Minister Mushtaq Ali Cheema told Dawn that Pakistan had the potential to export textile products, particularly finished fabrics, to Israel. The minister said that Pakistan’s fabrics were already reaching Israel via Cyprus for the use at the QIZ.

Mr Cheema said that it had been noticed that a Cyprus buyer had shipped textile products to Israel besides other destinations after importing them from Pakistan. However, the minister linked regular trade with Israel to the final settlement of the Palestine issue and added that an earlier settlement could usher in greater trade relation between the two countries.

A senior commerce ministry official confirmed that Pakistan had already received an excerpt from the Israel government for a temporary waiver of the requirement for an import licence, as a prerequisite for importing goods from Pakistan. According to the official, Israel’s Deputy Prime Minister and Minister for Industry, Trade and Labour Ehud Olmert had approved the waiver.

Until now, trade between Israel and Pakistan was extremely limited and subject to constraints and licences in both the countries.

A source at the foreign office while commenting on the development said it was a unilateral decision taken by Israel and would not lead to a change in Pakistan’s principled policy.