The textile industry is the most important manufacturing industry in Pakistan due to its significant contributions to the economy. It accounts for 11% of GDP and 66% of total exports. It provides around 40% of total employment. Key textile activities include weaving, spinning, printing, garment manufacturing and processing. In 2012, the textile industry accounted for 4% of the overall size of the Pakistani economy. It is a major export industry, with Pakistan ranking as the 8th largest textile exporter globally. The cotton sector is also very important as cotton is the primary input for the textile industry and a major crop in Pakistan.

1. Question Number 1: What is your understanding of ethical dilemmas? Given
three examples fromyour local business context that would seem as a dilemma
and how would you recommend doing something about them?
Answer: Ethical dilemmas is occurring in many fields, in our daily life routine and in a
professional field as well, it is considering between two choices right or wrong in respect with
different situation. For example when you see your best friend stealing a chocolate from a
candy shop, and later the authorized personnel came to ask you about the stealing, at the
moment you have two option to answer, you will say yes to betray a friend or say no to tell lie
to save friend, we can say this is an ethical issue because as a loyal friend it save a friend but as
responsible citizen it is wrong.
Following are three examples of ethical dilemmas in Pakistan
First example. Pakistan Tabaco Company, they are selling cigarette, which is causing lung
cancer and other serious health issues, customers know that it will damage his body and health
in the future, but their customers are still buying their products and consuming, it is ethically
and morally against a person himself. The government should start awareness and educate
people about health conscious, and impose regulations on unhealthy products.
Second example is the private clinics of doctors in Peshawar, well specialized and known
doctors, they are working on two shift a day one is working with government hospital which
include Lady Reading Hospital, KTH and other as well, and second shift is on their private clinics
the ethical issue arise when patients are trying to take an appoint for doctors, their assistants
are very rude and trying to blackmail patients that the list are full for today, but they can make
you reserve an appointment if you pay them bribery than you don’t have to wait for long time,
but those patients who don’t have approach or extra money to pay they are waiting for long
time instead of paying for consultation fees, this is unethical and doctors are playing with
human life like a products. Government should make regulation against private clinics and
initiate checking balance as well in the form of monitoring their activities, and heavy fine for
not following regulations.

2. 3rd example. At Forman Christian College in the process of hiring female staff one of female
candidate faced a gender discrimination, she was wearing full face hijab, she had submitted all
the required documents and her picture as well, but during the interview she was told to show
their face or otherwise she will be rejected from the job, but she did not obey their orders and
left the interview, they did ethical and also legal violation, this case should be reported to
Human right commission of Pakistan and those who are involved in discrimination should be
put into jail.
Question No 2: Compare the three leading and three bottom companies of KSE
100 index. Include financial and non-financial facts in your comparison and build
an argument with facts that why some companies value more while others
value less.
Answer: From financial statements of the company we can analysis the information of
company, which are in the form of income statement balance sheets such as with less liability
and more assets of owner equity. And share older equity as well and statement of cash flow
price of per share, and volume.
Companies’ value can be defining by market capitalization and can be known by the stock price
of company, it can be calculated by number of shares outstanding X stock price which is called
market cap. We can assume 10 million volume of share and with Rs 3 of stock price, Market cap
is worth of Rs 30 million, and the other company which is having 10 million volume of share
with the stock price of Rs 6 which Market cap can be Rs 60 million where we can say its total
value is much smaller than a company with Rs 3 of stock price. If there is a change in the stock
price percentage then the same percentage of change will occur in firm value, it is the main
reason that investor are very sensitive and cautious when there is Rs 0.1 of decreasing in stock
price will make a huge loss for investor and if there is increased in Rs 0.1 in stock will make a
huge profit.

3. Comparing of three leading companies, which are as follows
 Oil and Gas Development Company Limited with Market Cap is Rs 695.89 billion. Stock
price Rs 161
 Standard Chartered Bank Limited, Pakistan with Market Cap is Rs 95.63 billion. stock
price Rs 24
 Telecommunication Company Limited with Market Cap Rs 88.23 billion. Stock price is Rs
17
Comparing of three Bottom companies
 Pak Suzuki Motor Company Limited with Market Cap is Rs 51.4 billion. Share price is Rs
628
 Indus Motor Company Limited with Market Cap is Rs 39.2 billion stock price is Rs 900
 Packages Limited with Market Cap is Rs 72.64 billion. Stock price is Rs 822
Question Number 3: explain how a Pakistani company can develop trust
amongst stakeholders & minimize the risks of sustainability? Give three
examples of Pakistani companies who went bankrupt.
Answer: Pakistani firm’s and organizations can create a trust with the their stakeholders by
providing a transparency on their administration how the company is running their operations,
awareness about everything way of the program actually operating, monitoring and
evaluations the decisions company is going to make, their board of governance should be
select by stakeholders, mutual understanding between managers and CEOs and board of
directors, by having an open and clear communications between stakeholders and organization
managers and CEO , both can know their priorities and solving problems before it is becoming
serious issues, this will help in increasing trust and building stability and also a strong network
of team in the company and decreasing conflicts, between stakeholders and organization.
Company should be effective and efficient in terms of providing and disclosing financial
statements to their stakeholder’s.

4. To minimize the risk of sustainability Pakistani company should consider their social
performance and environment performance on a priority basis. First of all a company should
concentrate on sustainability as they concentrate on their mission and strategy, they have to
work on from top management to lower management to identify where they can cut down
their cost and waste of energy.in Pakistan most of the Organizations are not willing to adopt
new machines and technology, for example.in textile sector there are much more advance
spinning and dyeing machinery available but most of the companies are not willing buy them
just because they think its waste of money, they don’t know that the new machines are
efficient in producing and less running or (fuel) cost, which is not only cost cutting but also good
for environment as well, they should update their technology on regular bases to eliminate the
waste and increase efficiency and effectiveness, which will contribute in cost cutting and having
less effect on environment.
3 Examples of Bankruptcy companies in Pakistan are first one is Milkpure 2nd is Purabrand
these two firms were operating in the milk industry in Pakistan in 1983 due to their costly
market promotions in which they were offering free tea bags with their products which are
packed milk, their margin of profit was very low and could not bear extra products as
promotions and they eventually went fail and closed their business in 1985. 3rd company is
Mohib textile mill which went bankrupt, which is said to be one of the big sales in Pakistan
corporate history.
QuestionNumber 4: answer Discuss the most important manufacturing industry
of Pakistan in terms of its significant economic contribution? Discuss in light of
facts and figures.
Answer: Industrial sector of Pakistan is contributing about 24% to GDP to overall Pakistan GDP,
Of which textile and cotton(which is a natural fiber used as raw material for textile)
manufacturing is accounting for 11% of GDP our country is heavily depending on it and cotton
is the main industrial crop and also providing income to the rural area of Pakistan and it is the
biggest manufacturing industry in Pakistan, specializing in (weaving, spinning, Printing, Garment

5. manufacturing, Processing, Filamen yarn manufacturing )it is contributing the 66% of the total
export in 2009 the amount was 5.5 billion dollars and providing about 40% of employment in
the country and third largest consumer of cotton, Punjab and Sindh are the major producer of
cotton, in Asian continent in terms of exporting Pakistan is the 8th largest exporter and 3rd in
raw cotton and 2nd in cotton yarn with shares of 26% in international market .in 2012 by
Ministry of finance according to economic survey of Pakistan the industry of textile is consisting
4% of overall size of the economy. In 1950 Pakistan manufacturing industry begins and textile
was the leading industy. In 1953 Valika Textile Mill was the first modern mill at Karachi after
1963 more than 180 units of processing and printing and bleaching were installed by different
owners in Karachi and Punjab with imported technology, due to the lack of skilled labor and
technical staff the growth was very slow as compare to evolution in Europe. In 1970 to 1974 the
textile mills reached to more than 114 units, with more than 2,650 spindle’s and about 30
thousand of looms. In 1975 due to the separation of East Pakistan the private sector of textile
mills were nationalize and the textile industry faced huge losses because of the changes in
regulations. In 1980 due to changes in government policies and international market textile
started growth again, especially in spinning sector and it expand rapidly in numbers of more
than 440 units because the high quality fabrics with more than 70% of cotton as compare to
other countries was 45% cotton used in fabrics. In 1999 textile export was $ 5.5 billion and it
goes up to $ 10.5 billion in 2007 at 2006 the growth was about 16%. Export share of textile in
our country was 55% in 2008 as it was 67% in 1999 its decreased because of grew and increase
in export of other sectors in Pakistan, but in Pakistan People’s Party government the production
and manufacturing of textile goods were decrease because of shortage of gas and electricity
supply and Pakistan cotton cultivation was also going down due to the energy crises raw
material prices become decline and timely payment were not made by mills and export were
stopped at $ 12.5billion from 2010 to 2011,in 2012 10% of the textile mills have shut down,
many unemployed situation occurred. Now at the Nawaz Sharif’s government textile
manufacturing sectoring is recovering on a slow phase.