KARACHI, Dec 31: Discounting the direct impact on the industry of the current crisis, the business expects Calendar 08 more productive for trade and industry than the year 07 that closed at a sad note as Karachi Stock Exchange lost 700 points in response to a political rumour that led to nervous selling.

The current political and law and order situation in the country, however, failed to knock the positive sentiments completely out of the business community. The businessmen of Karachi, however, were comparatively skeptical.

Iqbal Ebrahim, Chairman, All Pakistan Textile Mills Association, (Aptma), who assumed office of the most powerful association of business in Pakistan on Monday, was upbeat about the year ahead.

“We have to look at the positive side of the picture to move on. The prospects in certain segments of textile industry (home textile) are good where overseas customers are looking back to Pakistan as preferred destination after trying out our competitors,” he said.

“Much will depend on the government and the private sector’s ability to reposition itself to compete with confidence in a challenging global business environment,” said another tycoon from Lahore.

“The industry and the government will have to work closely to readjust structurally to achieve the critical mass in industry to perform well,” Shafqat Illahi, the outgoing chairman of Aptma, commented.

“The government will have to facilitate the consolidation process to minimise the pain to business who call it a day and opt to exit and help others to become bigger to be able to compete internationally,” he said.

Illahi was pointing to the need of putting bankruptcy laws and other necessary legal structures in place.

“There is a huge demand for Pakistani cement, food products, home textiles, etc., if we get ready to respond in time,” said another tycoon from Islamabad.

“There are indications that the construction industry is going to pick up in a big way as many Middle East and Far-East investors are waiting for the next government to settle before making a move and if conditions allowed them to enter Pakistan, at least 36 allied industries will be lifted creating immense opportunities for a score of people,” he said.

The President of Federation of Pakistan Chamber of Commerce and Industry was not available for his comments, some leading businessmen contacted in Karachi were not as optimistic.

“The first six months of 08 should be written off as the situation cannot normalise immediately. What happens next will depend on what it takes to settle in the first half of the year,” Majyd Aziz, ex-president Karachi Chamber of Commerce and Industry, said.

“The peace is absolutely necessary for the wheel of the economy to move. Uncertainty discourages investment. The must move and move now to pacify the situation and prove its commitment to development or the business would assume that the government does not cares.”

Despite a murky outlook for the economy, prices of most consumer items, including food, are seen settling at elevated levels, spelling more pain for consumers and gains to unscrupulous hoarders and traders.

“People at the beginning of the year 07 would never have dreamt that prices would reach such levels. The benefit, however, was reaped by overseas suppliers as the locals failed to adjust swiftly to increased demand for many items,” another business leader told Dawn.

Hopefully in an election year, the government would be more diligent in sifting corrupt greedy elements to check maneuvered price increases and let the environment be more attractive for the genuine business in Pakistan.

“Dec 27 incident will cast its shadow over the business activities in the year 08 and it would be a difficult year for business in Pakistan,” Zubair Motiwala said from Karachi.