Firms

The Textiles and Garments Sector: Moving Up the Value Chain

Ijaz NabiNaved Hamid, and Rafia Zafar

Garment manufacturing, the least energy and capital-intensive kind of industrial activity, is not realising its potential in Pakistan to grow the economy and create employment. To unlock the benefits of garments manufacturing on Pakistan's economy, it must move up the value chain and compete in global export markets.

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Financing Constraints: Determinants and Implications for Firm Growth in Pakistan

Naved Hamid and Hamna Ahmed

How does finance constrain enterprise growth, and what determines access to external finance in Pakistan? 

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Private Finance Companies in LDCs: Lessons from an Experiment

Naved Hamid

In many LDCs liberalizing the financial sector will involve creating new financial institutions in the private sector to attract untapped savings and provide new services. This paper provides a detailed account of an experiment with Private Finance Companies (PFCs) in Pakistan. The complex legal, ideological and economic factors that explain the initial success and the ultimate failure of that experiment are identified. It is concluded that PFCs have an important role in mobilizing rural savings, but to safeguard depositors a legal framework has to be provided. Care should be taken that nationalized banks, acting in their self-interest as monopolists, do not create hurdles in the provision of such minimum regulation.

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