Indian officials will hold top-level talks with EU bosses at a business summit in Denmark this week - just days after claiming the EU had agreed to withdraw duty-free textile benefits to Pakistan.

India's textiles minister, Kashiram Rana, was quoted late last week as saying the "EU has withdrawn the special GSP benefit earlier granted to Pakistan in respect of textile goods namely apparels and made-ups".

However, it now appears that is not the case and Pakistan will actually lose another kind of duty-free benefit on a range of goods, including textiles and garments, probably from the start of 2004.

Rana and his colleagues have spent months trying to secure similar Generalised System of Preferences benefits awarded to Pakistan by the EU for its fight against drug trafficking.

They claim their garment and textile exporters are missing out on huge overseas orders as foreign apparel firms take advantage of the concessions offered to Pakistan.