Finance

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Current Problems of Corporate sector of Pakistan |

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Devolped by: Ahmad Raza Hussain |

ID-07108113Section: “A”BBASubmitted To: Shab_ud_Din |

Gift University, Gujranwala

Current Problems of Corporate sector of Pakistan

Pakistan economy has been heavily hitted by slow down and down turn prevailing globally and small and medium size industries are badly effected due to it as compared with corporate sector which have better access to financial institutions. Due to huge amount of financing involved,Bank in Pakistan are very much accomodating towards corporate customers.Likewise Government is also giving more importance to Corporate entities. On the other hand small and medium size businesses and industries are dependent on corporate sector to a great extent and does not possess enough shock absorbers against higher cost of production and like factors. Given below are some of the main problems/observation pertaining to SME sector in Pakistan.

* Severe electricity load shedding and disconnection of Sui Gas supply for industries in winter season is the biggest problem faced by SME sector in the country. Small and medium size manufacturing units are badly affected to the power crises as they do not have alternative resources as corporate sector have, like their own power generation houses. Due to power crises prevailing for last many years, unemployment in the country has also increased to considerable extent. In majority of sectors work force/labour works on daily wages basis and in constant power break downs they are deprived of even basic necessities of life which is least desirable in any civilized society. Today Load Shedding has become major problem of Pakistan and small and medium sized industries/traders are suffering to worst extent. In order to save SME sector and Industrial Sector as a whole which is main contributor of production of goods and services in the country State Bank of Pakistan should take matter with the Government of...