Although the US lifted some sanctions against Pakistan as a reward for its cooperation in the war on terrorism, proper advantage of the facility was not taken by Islamabad. Many restrictions were also lifted from textile imports but Pakistan came late to avail itself of the opportunity. On the other hand, India, China and South Korea made the most of the situation by boosting their textile sales, asserted a leading US-based Pakistani businessman, Shaukat Ali Chauhan, while talking to Dawn during his short visit to Lahore recently.

‘Neither any legal framework in the US is a hindrance to our exports, nor is there any particular bias in that country against imports,’ he said, pointing out that the system there is based on how business benefits. So strong is the competition in textiles in the US that it has virtually killed 90 per cent of its own textile industry.

He said that earlier there was little quality consciousness among our exporters which affected our exports. However, the reputation of Pakistani textiles is gradually improving and Pakistani garments are now acceptable in the US market. Denim cloth is in high demand with the spread of Yahoo culture involving increased use of casual dress across America. Moreover, the increase in the expendible income of the Americans and Europeans has contributed to the rise in demand for denim. An estimated $60 million worth of denim cloth was exported by Pakistan this year.

The denim trend is part of the increased demand for finished goods in the US, resulting in a diminishing trend in textiles. Not only therefore Pakistan faces a growing challenge from its traditional rivals, but competition has also increased with the coming into force of the Nafta arrangement, envisaging both a higher quality level and an even playing field for suppliers of textile goods. He emphasized that a major challenge for Pakistan will come after the phasing out of preferential quotas in 2005 under the WTO. ‘Then we will be on our own and will have to compete on the basis of our economic strength’.

With time running out, Mr Chauhan called for diversifying Pakistan’s exports to meet the challenge. He regretted that there was no long-term policy in Pakistan. The volatility in the socio-economic conditions and the lack of policy consistency affect our exports. ‘Businessmen’, he said, ‘can’t really plan due to this flaw’. In this regard, he gave the example of the banning of the plastics’ import during the Benazir government, which destroyed the plastic industry. He suggested that Pakistan should follow China’s example by developing a viable consumer goods industry. Daily-life items, including cutlery and other local goods, can be produced under third-party production, he said.

Regarding steps to boost textiles exports, he warned that supply timing is very important. “The goods should be on the shelves six months in advance,” he said, adding, “you are blacklisted if you are not on time”. Regretting the short-term outlook of Pakistani businessmen wanting maximum profit, Mr Chauhan asked them to ‘do business with a good intention and meet your obligations. This will bring more business and open the doors in the US’.

Unfortunately, he said, a culture of fraud has developed. There were many irregular practices, violations of quota restrictions and misdeclarations which have greatly harmed Pakistan’s image and reputation as a desirable trading partner.

In the broader perspective, he said, the need for paying attention to this particular aspect has increased after 9/11. Policy-making in the US, he added, has passed into the hands of the Jews. Islam being the fastest-growing religion in America, Muslims are making many enemies there, he warned. The biggest lobbies are of the Jews and Hindus, he explained. They have joined hands and also have great impact on US policy.

In this context, the perception in many business segments of America that “if you are a Muslim, you are a cheat” is very damaging. This impression must be countered at all costs if we are to make any headway in exports and business.

With a touch of reminiscence, he said that he had only 50 dollars with him when he landed in America in the 60s, rising by sheer hard work and fair dealing. These qualities are lacking in many latter-day Pakistani entrants in the land of opportunity. Particularly the uneducated class among them took undue advantage of the trust and credibility established by earlier Pakistani businessmen and the results are before us.