Massive bankruptcies expected in early 2009
The business community is expecting massive bankruptcies in early 2009, due to latest Pak-India tension in the backdrop of November 27 Mumbai attacks coupled with prevailing power and gas load shedding countrywide.
Right from retail to the wholesale markets and the Small and Medium Enterprises (SMEs) to the large-scale units, everyone from the business community is very much concerned over the prevailing negative trend in the business.
Interestingly, the government should focus on releasing development funds, instead of stimulating development activities, moreover the government should avoid working much fashioned 'stimulus plan' like rest of the world, businessmen said.
The large scale units are facing acute power and gas shortage, putting their machines off and the export-oriented industries, particularly the SMEs, are losing hope on any worthwhile 'relief package' in the days ahead.
"A delay in payments is very much likely against export shipments from apparel sector and majority of the apparel sector would be unable to meet recovery schedules of banks," said one leading exporter from hosiery sector. Another from Ready made Garments sector pointed out massive bankruptcies ahead with rising number of defaults.
"Heavy closures are in the offing across the board due to unfavorable state of affairs in the field business," said another exporter. Similarly, hopes regarding continuity of Research & Development (R&D) fund are also dying fast despite the fact that the IMF has agreed with the government for its continuity for value-added sector.
Those in retail and wholesale business are blaming electronic media for spreading fears on possible attack from India. According to them the panic has spread all around the markets and no one is ready to make fresh deals unless uncertainty fizzles out.
It is also worth mentioning that a good number of B-3 consumers have already shut down their businesses across the country due to unprecedented power shortage, continuing from last November. Reliable sources in the industry as well as the power sector revealed that the electricity consumption of B-3 consumers has slashed more than half in the last year, which reflects heavy closure in spinning and weaving sectors.
And those having captive power plants have entered into last round of a lost battle with the government over gas supply to their power generation units. The textile sector is striving to convince the government policymakers that supply of uninterrupted gas to its units carries worth than the CNG stations.
Meanwhile, sources in the Planning & Development Board admitted that the progress on ongoing as well new development schemes is terribly low. A string of meetings is in the process at the P&D Board at present to pursue different departments on gearing up development pace in the province ahead of mid-year development review meetings, scheduled in January. A scarcity of funds, as a matter of fact, has put all development priorities of the government on backburner, which is supposed to support some 40 different industries linked directly and indirectly with construction.
A change in fund release policy is underway before the Chief Minister Punjab Mian Shahbaz Sharif avails the opportunity of suspending a few more development planners in upcoming mid-year development review meetings.
Right from retail to the wholesale markets and the Small and Medium Enterprises (SMEs) to the large-scale units, everyone from the business community is very much concerned over the prevailing negative trend in the business.
Interestingly, the government should focus on releasing development funds, instead of stimulating development activities, moreover the government should avoid working much fashioned 'stimulus plan' like rest of the world, businessmen said.
The large scale units are facing acute power and gas shortage, putting their machines off and the export-oriented industries, particularly the SMEs, are losing hope on any worthwhile 'relief package' in the days ahead.
"A delay in payments is very much likely against export shipments from apparel sector and majority of the apparel sector would be unable to meet recovery schedules of banks," said one leading exporter from hosiery sector. Another from Ready made Garments sector pointed out massive bankruptcies ahead with rising number of defaults.
"Heavy closures are in the offing across the board due to unfavorable state of affairs in the field business," said another exporter. Similarly, hopes regarding continuity of Research & Development (R&D) fund are also dying fast despite the fact that the IMF has agreed with the government for its continuity for value-added sector.
Those in retail and wholesale business are blaming electronic media for spreading fears on possible attack from India. According to them the panic has spread all around the markets and no one is ready to make fresh deals unless uncertainty fizzles out.
It is also worth mentioning that a good number of B-3 consumers have already shut down their businesses across the country due to unprecedented power shortage, continuing from last November. Reliable sources in the industry as well as the power sector revealed that the electricity consumption of B-3 consumers has slashed more than half in the last year, which reflects heavy closure in spinning and weaving sectors.
And those having captive power plants have entered into last round of a lost battle with the government over gas supply to their power generation units. The textile sector is striving to convince the government policymakers that supply of uninterrupted gas to its units carries worth than the CNG stations.
Meanwhile, sources in the Planning & Development Board admitted that the progress on ongoing as well new development schemes is terribly low. A string of meetings is in the process at the P&D Board at present to pursue different departments on gearing up development pace in the province ahead of mid-year development review meetings, scheduled in January. A scarcity of funds, as a matter of fact, has put all development priorities of the government on backburner, which is supposed to support some 40 different industries linked directly and indirectly with construction.
A change in fund release policy is underway before the Chief Minister Punjab Mian Shahbaz Sharif avails the opportunity of suspending a few more development planners in upcoming mid-year development review meetings.
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