Global Recession and China

Mahmood sahib,

Do you think Indian manufacturers will be able to make it big in the world markets, espeically in wage goods?

Regards

The industry was not only shut down in pakistan, whole world was afected by the China Price . But I personally doubt that this phenomenon can eb repeated again and yes the death of local industries is a painful process as I know friends of my friends loosing money and shutting down their units due to cheap goods of China.

But the challeneg was to eb met by innovation, adjustability and restructuring of industry and it did not happen. It was complete failure of public and priavet institutions governing the trade regime in Pakistan. But in future if there is chaneg fo culture then the goods of Pakistan have very good quality and also competitive prices, we need BRANDING and MARKETING . which we completely ignore. This is isseu of culture not of any policies. at the end in age of GLOBALIZATION the things are pretty tough and also unpredictable but future thinking is panacea and risk sharing . It needs innovation from manufacturers and Government alike. So we hope for the better!

Thanks for reading the article.I am laughing! It is not like this. In Economics the Comparative Advantage is the most suitable parametre to measure the trade development and its relationship with competitive advantage resulted in the rise in exports of China.

The China price was result of low labour, low price of raw materials, and no care to the environment. But now and in future this will not be situation, the chickens have come to roost!

I talked to a guy from UK he said the Pakisatni textile is getting competitive but there is issue of quality and Pakistani enterpreneurs are not pasionate to solve the issue. Although Bangladeshis are. This is the difference why Pakistan has not becoem alternatiev destination for RMGs although Bangladesh is.

The long term survival will depend upon the competitive prices and copmaritive advantage and Pakisatni industry was certainly affected by Chinese cheap goods but our own government policies were not taking cognizance of the situation. As I myself asked ex-Governor SBP Ishrat Hussein, the same question raised by you and he got angry with me!

Our free trade was doen without any homework and care to the local industry and it was choked by increased taxes specifically, GST and higher cost of power /energy.

Thanks for article I learned lot from it.
Given china becoming only Super power or campareable to usa is it death wish for our domestic business ( manufacturing) the free trade with USA and China ?
With out FTA china Inc have demolished and deindustralised our country. Please comment.
( I am aware they are brotherly people for pakistani people)
Good morning

Dear nkg

Having good customer base can be a good cushion, but the dependancy and interconnected of sytsem places it at greater risk and shows the inherent inadequacy and limits of present capitalistic system.

Dear nkg

Having good customer base can be a good cushion, but the dependancy and interconnected of sytsem places it at greater risk and shows the inherent inadequacy and limits of present capitalistic system.

Dear nkg

Having good customer base can be a good cushion, but the dependancy and interconnected of sytsem places it at greater risk and shows the inherent inadequacy and limits of present capitalistic system.

Mahmood....

China and India has good customer base. They can survive somehow (if oil price is kept under 50USD)...may be growth rate will be very low ( india has already reduced target to 7.xx)....after fall of USSR, everything become NATO/US centric...Asian countries (Japan should lead the effort) should come together to find some solution of it. That way USA and Eu will also survive....