Pakistan's textile industry employs 3.5 million workers, making up 60 percent of the industrial workforce in a country of 145 million people. The country exports some $2 billion worth of textiles every year to the United States, one-fifth of the country's total merchandise exports. Other Pakistani textiles end up in the United States via garment factories in third countries.

The government in Islamabad is asking Washington to follow the lead of the European Union and reduce import tariffs, which average 17.5 percent of the costs of textiles from Pakistan. To date, White House officials have indicated they oppose such a step. Reflecting a wider debate among U.S. capitalists, a November 1 Washington Post editorial argued for "immediate trade liberalization," on the grounds that it might undermine the widespread protests sparked by President Pervez Musharraf's backing for the war.

Washington is preparing a package of grants, low-interest loans, trade moves, and debt rescheduling for Pakistan that would make it the largest recipient of U.S. aid after Israel and Egypt. "The reality is that this is a country that has behaved in a stalwart fashion during this crisis, and that is going to be recognized," said a White House official.

Among the measures under preparation is the rescheduling of Islamabad's $3 billion debt owed to the U.S government. London has followed suit. Pakistan's total foreign debt stands at $38 billion, equal to 100 percent of its gross domestic product and more than six times its annual income. The debt amounts to around $500 per person in a country where the average annual per capita income is $450.  
 
 
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