Making businesses resilient

#Making #businesses #resilient

Lahore: Businesses in Pakistan can create flexibility to overcome economic uncertainty through strategic planning, financial discipline and operational flexibility. Some industries have shown flexibility by adapting to the challenges, while others have struggled.

Our economic scenario identifies high inflation, currency department, rising energy costs and political instability. Business to create flexibility, businesses have to diversify the revenue series rather than relying on a single product and increasing market size. They should maintain strong cash flow and reduce dependence on debt. Businesses depending on imports will have to heal against currency risks.

Reducing dependence on imported raw materials can disrupt businesses in currency fluctuations and global supply chains. Automation can help reduce costs without compromising on energy efficient process and improved inventory management standards. They should invest in employees’ productivity, increase export capabilities, take advantage of e -commerce and advocate with the government for business friendly policies.

In the past, the people who have shown flexibility have changed strategies with a change in the situation. Our agriculture and agriculture -based industries have shown significant flexibility. One of the reasons is that food is needed to ensure stable demand. Another is that farmers have no choice but to find ways to grow. Hybrid seed growth and import of high production seeds facilitates farmers. In addition, the export capacity of some agricultural commodities attracts foreign buyers. These items include rice, lemons and mangoes. The challenges facing this sector include climate change and water shortage. Lack of mechanization is also an error.

IT and software services have also shown significant flexibility. IT services players take foreign exchange with their services and permanently benefit from the deprivation of the rupee. Despite domestic economic problems, freelancing and remote work has increased. Government privileges and tax exemptions have supported development. The challenges facing this sector include political uncertainty that affects investors’ confidence. Lack of IT infrastructure outside major cities is also limiting our IT capability

Pharmaceutical and health care continued to increase as the essential nature of the drug ensures stable demand. Some firms benefit from exports and foreign cooperation and Pakistan’s growing population guarantees the long -term market. Despite the challenges such as dependent on imported raw materials and prices control, growth is underway, which affects profit.

Textiles and apparel have shown mixed flexibility because it is a large export industry industry used to enjoy government privileges. The deportation of the rupee has made exports cheaper, and the larger labor force is competitive. Some sub -reserves of textile are currently struggling due to high energy costs and disturbances. Our textile exports are another reason for the low price increase as the current players’ focus is on raw textiles rather than ending clothing.

Rapid -moving consumer goods maintain strong growth due to a permanent increase in the population. Regardless of the economic conditions, daily accessories such as soap, toothpaste and packaged food are stable. Most companies transmit inflation costs to consumers. The increase in e -commerce has also supported sales. The FMCG faces a challenge to heavy dependence on imported components and reduction in consumer purchase power.

Industries that have been struggled include automobiles due to high prices of cars due to rise in cars prices and import restrictions on parts. Demand is also low due to a decline in consumer purchase power. High interest rates have made auto financing expensive. Many leading companies have observed the obstacles.

Construction and real estate are also struggling due to high raw material costs (steel, cement tiles) and due to lack of currency. The government’s crackdown on undisputed real estate has also affected development. There is also a decrease in residential projects due to inflation. It has affected jobs in cement, steel and tiles.

Travel and tourism is another death because domestic tourism has been affected by inflation and security concerns, while expensive aircraft and travel restrictions have reduced the arrival of international tourists. Floods and natural disasters also affected local tourism. As a result, hotels and airlines have seen the business less.

Consumers are struggling with retail and small businesses, especially for unnecessary goods due to a lack of purchase power. High shop fares and energy costs have squeezed small retailers. And the e -commerce competition is affecting traditional stores. Many small shops are shutting down or moving online.