China's increasing textile exports to Pakistan are threatening the latter's industry, Akbar Sheikh, spokesman for All Pakistan Textile Mills Association, was quoted by Reuters as saying.

Sheikh said the upturn in Chinese imports was "a major problem" and argued the government was not doing enough to save domestic manufacturing.

"…you can never compete worldwide unless you're efficient in your own market," he said, criticising the government for cutting down on import duties and taxes on raw-materials.

The anticipated free-trade deal with China is also raising fears that Pakistan will reap fewer benefits than its trade partner, reported Reuters.

Increasing trade between the two countries is expected to be a key point on the agenda as Chinese president Hu Jintao visits Pakistan this week.