03-27-2009, 02:12 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by kamranACA</i>
<br />Dears,
I may be coming on this point in detail somewhat later, but to me, if power/gas crises is overcomed along with law and order situation and other impediments, then every thing will depend upon available funds (equity as well as debt) and economy of scale.
We have an inclination of deviding the businesses of ancesstors instead of growing them as united units. I am not referring to big giants but the medium industry at large faces this problem. This squeezes the resources and everything vanishs in losses and quality rejections. Please remember every thing in business specially in textile will depend upon capital structure, available funds and economy of scale.
Efficient utilization of resources, efficient and skilled labour, innovative techniques, state of the art facilities, quality raw material inputs and other things will follow, which of course will depend upon funds.
I foresee that interest rates would now be coming down drastically. We may be seeing interbank rate at around 7% to 8% in upcoming days. Remember my words 7% to 8%. Still, export refinancing would be inevitable at some very nominal service charge of 3% to 4%. SBP may also introduce (which I can only hope for) some scheme of low rate long term financing for import of value adding plant, machinery, components and parts in order to encourage the BMR.
In fact there is a need to shift some of the profit proportions from banking sector to textile sector so that both sectors may be showing acceptable contribution to GDP growth and returns. Here lies the role of economists and strategy makers. Let's see what they would be coming up with.
Regards,
KAMRAN.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
What u saying is to reduce the financing cost.
But I dont think that Govt would take such steps as present situation is also not good for Banking sector. We are also facing foreign pressure regarding IMF loan. Will they allow us to reduce the Financial Charges?? However, Govt may allow special benefits to this particular sector as it needs special steps for revival.
Well pls discuss importance of other factors in increasing our sales, like labour, raw material, electricity, and unstable fuel charges...
Are the above stated costs lower enough to compete in international market???
Best Regards
Adil Iqbal
<br />Dears,
I may be coming on this point in detail somewhat later, but to me, if power/gas crises is overcomed along with law and order situation and other impediments, then every thing will depend upon available funds (equity as well as debt) and economy of scale.
We have an inclination of deviding the businesses of ancesstors instead of growing them as united units. I am not referring to big giants but the medium industry at large faces this problem. This squeezes the resources and everything vanishs in losses and quality rejections. Please remember every thing in business specially in textile will depend upon capital structure, available funds and economy of scale.
Efficient utilization of resources, efficient and skilled labour, innovative techniques, state of the art facilities, quality raw material inputs and other things will follow, which of course will depend upon funds.
I foresee that interest rates would now be coming down drastically. We may be seeing interbank rate at around 7% to 8% in upcoming days. Remember my words 7% to 8%. Still, export refinancing would be inevitable at some very nominal service charge of 3% to 4%. SBP may also introduce (which I can only hope for) some scheme of low rate long term financing for import of value adding plant, machinery, components and parts in order to encourage the BMR.
In fact there is a need to shift some of the profit proportions from banking sector to textile sector so that both sectors may be showing acceptable contribution to GDP growth and returns. Here lies the role of economists and strategy makers. Let's see what they would be coming up with.
Regards,
KAMRAN.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
What u saying is to reduce the financing cost.
But I dont think that Govt would take such steps as present situation is also not good for Banking sector. We are also facing foreign pressure regarding IMF loan. Will they allow us to reduce the Financial Charges?? However, Govt may allow special benefits to this particular sector as it needs special steps for revival.
Well pls discuss importance of other factors in increasing our sales, like labour, raw material, electricity, and unstable fuel charges...
Are the above stated costs lower enough to compete in international market???
Best Regards
Adil Iqbal