Mar 15 - 21, 2004  
ISSUE # 11  

China and India are emerging as the favorites for bagging the lion's share out of $400 billion global textile market because both the countries have developed their industry to the level of economy of the scale to meet the market demand and compete in terms of quality as well as price. As far as Pakistan was concern, it has yet to improve in various directions. Though it has the capacity to produce quality products, yet it lags in terms of price and quantity. For this, the industry should have to join hands for a common goal. They have the potential and capacity, the only thing which lacks is the willingness to live and prosper together. The international textile analysts estimate that

China, which commands over 15 per cent of the nearly $400 billion global market in textiles, would be the biggest gainer in quota free regime. Indeed, there is evidence that China's market share could cross 25 per cent.




Lately there has been significant interest in cement scrips at the back of improved earnings taking the advantage of low interest rates. Some of the companies have undertaken expansion programme. Once enhanced capacity comes on line capacity utilization may down from current level of around 70%.


Looking at the market appetite and short supply of quality scrips, the times seems to be ripe for enhancing minimum paid-up capital of commercial banks from one billion rupee to two billion rupee by end December 2005. However, the central bank must recommend issue of Right Shares at premium rather than Bonus Shares.