Abstract
The aim of study is to analyze the performance of Textile sector in Pakistan covering the pre–crisis period, post crisis period and period of crisis as well. For this purpose data were collected from overall textile sector from available sources for the period of five years. According to the most of the analysts, financial crisis 2008-09 is serious one after the world wide great depression of 1930’s. The analyses have been conducted on the basis of financial ratios (Profitability, liquidity and activity). The profitability ratios such as returns on assets were affected by financial crisis because returns on asset were decreased in crisis period as compared to cover pre and post crisis and same is the situation of return on equity that was also affected by financial crisis. The earnings per share are also reduced in financial crisis period because before and after crisis earning per share was positive but negative in crisis. The liquidity of this sector was also affected by financial crisis. Turnover of the assets also proved that assets were poorly managed by textile sector in financial crisis period. The results showed that the performance of textile sector had been better in pre-crisis and post-crisis while it was bad during crisis period.
Highlights
The main purpose of this study is to analyze the overall performance of the textile sector in Pakistan for the period of five years (2006-2010)
By testing the hypotheses 1 it is accepted because the return on asset decreases in financial crisis period
The above table & diagram shows that the return on assets of the textile sector in 2006 was 3.628% on profit after, in 2007 1.065% this was the period of before crises and in 2008 and 2009 suddenly due to financial crises the profit of this sector converted into losses and the whole sector suffer with the loss percentage of in (-1.926), (-1.281) and after the crisis in 2010 it again converting into profit 3.947%
Summary
The main purpose of this study is to analyze the overall performance of the textile sector in Pakistan for the period of five years (2006-2010) This is the main industry of the Pakistan which is contributing the foreign 7exchange by promoting export to the different countries. This is the objective of the study to analyze the textile sector in the most crucial period of the crisis either decreased its performance or not. The main collapse of US banking sector have widely affected the whole world as for as finance is concerned This is really a big problem for under developing countries.) Before starting discussion on impact of financial crisis 2008-09 on textile sector in Pakistan, it is necessary that to discuss the textile industry in Pakistan. According to the Pakistan Credit Rating Agency Limited, Pakistan is the fourth largest producer of cotton with the third largest spinning capacity in Asia after China and India
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