LAHORE, June 1: With their fingers crossed at the height of the military standoff between Pakistan and India, knitwear and garments exporters are anxiously waiting for orders both from the US and the European Union (EU) for Spring 2003.

“The export orders for spring season are confirmed by end June every year,” leading knitwear exporter Babar Agha told Dawn here on Saturday. The delivery of these orders, he said, takes place in September and October.

“The placement of the orders for the next year would determine if the export business we got for this fall has come back to stay or not,” Agha said.

The US economy is also showing signs of improvement during the recent months as the consumer spending has picked up. “Should the (export) orders for Spring 2003 still drop, it will mean that the buyers are reluctant to do business with Pakistan. The war threat could play a significant role in the confirmation or otherwise of the orders,” Agha said.

The September 11 attacks had adversely affected the exports of knitwear and woven garments from Pakistan because the buyers, who usually finalize their orders for summer during Sept/Oct, shifted to other places. “The media reports of protests (by the religious elements) scared the customers who thought that we’d be unable to ship them in time. The decision of all foreign airlines to cancel their operations to and from Pakistan, and imposition of war risk surcharge further squeezed the exporters,” he said.

The situation led to loss of thousands of jobs in the clothing sector and closure of smaller units. “The local industry suffered another setback in December in a similar fashion when the suicide strikes were carried out on the Indian parliament building,” Agha said.

The exporters say some 80 per cent export business, lost in the aftermath of 9/11, did come back to Pakistan though the unit prices fell drastically by 8-10 per cent. “The low inventory levels in the US also played a helpful role in getting Pakistan the lost business. Besides, we were also saved by concessions given to us by the EU and the US,” they say.

Former president, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Pervez Hanif said the buyers were “doubtful” of the Pakistani businessmen’s ability to deliver their orders in time because of the threat of war from India. “Foreign buyers are reluctant to visit us because of the situation in Kashmir, and on the Indo-Pak borders.”

Similar views were expressed by Pakistan Hosiery Manufacturers Association chairman Shahzad Azam Khan who said exports are being affected due to the existing situation on the borders. “Who would like to buy from Pakistan in these circumstances when they can go to other places for the same? We do not produce something special that is not available in other parts of the world.”

“If the situation lingers, the exports are going to suffer hugely,” said an exporter who asked not to be named. He said the clothing was a very sensitive and vulnerable sector. “We produce for brand names against orders from them. If we don’t get orders, we cannot continue production. This was very well brought home to us by the crisis created after the 9/11 events,” he said.