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ECONOMIC CRISIS
2008
The Impact of University
Research on Industrial
ECONOMIC SUPPLEMENT Innovations
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fences and provides approach to original
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Increased sales: With approach to a
wider marketplace, suppliers have the po-
tentiality to increase revenue.
Reduced sales and backing costs By au-
tomating sales and client backing proc-
esses companies can cut over chief costs
around 25-30% well.
Reduced elevated costs: Thanks to
sleek supply string elevated costs can be
reduced upward to 30 percentages.
B2B exchanges: The landscape is lit-
tered with hundreds of B2B exchanges
that have failed, demonstrating that suc-
cess is far from automated. But many are
Display Center
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yet operating. They have learned how to
go reward of the opportunities and avert
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grated into a Business to Business market
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including quote, dialogue, billing and con-
signment tracking.
www.industrialoption.com is an innova-
tive and comprehensive online business-
to-business (B2B) portal, which provides
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exporters, producers, suppliers and oth-
ers who are involved into import-export
trade. Since inception in 2008, Indus-
trialOption emerged as an international
plateau for thousands of consultants,
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Page - 
Industrial Option December 2008 | industrialoption.com

Table of Contents
Editorial Page - 4
Diary Page - 5
The Impact of University Research on Page - 9
Industrial Innovations
2008 Economic Crisis Page - 12
Corruption and Bribery: Poverty and Economic Page - 16
Development Impacts
Super Tips to Get Rid of Your Public Speaking Fear Page - 17
SWOT Analysis- To Make Your Business More Profitable Page - 17
IBM, Academics Seek to Create a Computer That’s More Like Us Page - 22
News & Views Page - 23
Micro-financing: an innovative application of social networking. Page - 25
Islamic festivals: The spirit behind Eid -ul-Adha Page - 37

Domestic Issues
needs Domestic
Solutions Sheikhupura Chamber of Commerce & Industry

Sheikhupura Association of Industry

Page - 
Industrial Option
Editor’s Desk
The role of the public bureaucracy in
achieving good governance cannot be un-
der estimated. This can be gleaned from
the central role it plays in the formulation
and implementation of policies designed
for the development of the society. In
Pakistan, the role of the state bureauc-
racy has come under severe criticisms
within the context of that gap that ex-
ists between its anticipated role and its
actual output in guiding the society along
the course leading to the desired goal -
development. The efforts of the previous
governments have not yielded the much-
expected results due to the problem of
corruption that has eaten deep to the
December 2008 | industrialoption.com
fabric of the Pakistani society – the public
bureaucracy not spared.Thus, the gains of
good governance have been eluding the
average Pakistani citizen.
It is noted and widely accepted that PPP
and PML-N political coalition is hell-bent
on good governance, which encompasses
three different but not unrelated dimen-
sions.
These are political dimension, which cent-
ers on the establishment of good objec-
tives and the exercise of good leadership.
Second, technical dimension which relates
to the constraints which are imposed
by natural resources, level of education
manpower etc and thirdly, institutional
dimension which relates to the ability to
get things done or precisely efficiency in
public management. In view of this, any
effort geared toward promoting devel-
opment in the society must consider the
three dimensions. The bane of Pakistani
public administration is that of corrup-
tion, which has not allowed the inter-
relationships that exist among the three
variables to provide built – in- mecha-
nism that has the capacity of engendering
good governance. Therefore, under the
leadership of President, Parliament shall
submit that corruption must be positively
addressed and reduced in the public bu-
reaucracy for Pakistan to be able to meet
the challenges of the 21st century.
Corruption Impacts Foreign Direct
Investments
The adverse impact of cor ruption on for-
eign direct investments is equally well es-
tablished. However, the extent to which
different types of corruption may exert
different impacts has hardly ever been ad-
dressed up to now.
Corruption embraces a variety of differ-
ent activities such as the embezzlement
of public funds in public utilities, the ex-
tortion of speed money in exchange for
lowering tax assessments, commissions
to parliamentarians in exchange for favo-
rable legislation and bribery in exchange
for public contracts. Each of these actions
is likely to exert different consequences.
Without doubt, there is a linkage between
transparency and probity of the politi-
cal leaders and bureaucrats of a nation
and its level of development. Corruption
however has been the bane of develop-
ment of many nations. The evil exists in
every facet of world societies. You bride
to get your child into a school, you pay
to secure a job and you also continue
to pay in some cases to retain it. You pay
percentage of any contract obtained, you
dash the tax officer to avoid paying taxes,
you pay the hospital doctor and nurse to
get proper attention, you pay the police-
men to evade arrest. This catalogue of
shame can continue without an end.
Manzoor Malik
Editor in-Chief
Page - 
Industrial Option
Diary
SYSTEM IS NOW IN ORDER - USE
Sheikhupura Chamber of Commerce
& Industry STAIRWAY
By: Imran Aziz
Historically SCCI was registered in 1992
at Pir Bahar Shah Chowk (Ref: Board of In-
vestment, Pakistan) and later transferred
to Kot Abdul Malik. Finally, it is operating
at 23 KM, Lahore-Sheikhupura Road, Qila
Sattar Shah, Sheikhupura, Punjab, Pakistan.
Throughout the years, SCCI performance
questioned at national and international
levels, debated, and published by PPI
(Pakistan Press International) and other
news agencies.
Despite criticizing that what happened in
past, the current elected body under the
leadership of Mr. Manzoor Ul Haq Malik,
gives tremendous peace of mind.
Under his leadership SCCI membership
has grown to 180 eligible members and
rapid reforms and development works
are undergone. Mr. Malik believes that
“Developing countries have long argued
“Developing countries have long argued the
importance of growth for lifting their peo-
ple out of poverty. And we at SCCI should
not forget that, ultimately, we exist to work
ourselves out of business - and the best way
to do that will be to encourage growth and
trade based on industrial output of Paki-
stan”. Manzoor Malik, President SCCI
the importance of growth for lifting their
people out of poverty. And we at SCCI
should not forget that, ultimately, we exist
December 2008 | industrialoption.com
to work ourselves out of business - and
the best way to do that will be to encour-
age growth and trade based on industrial
output of Pakistan”.
Pushing growth up the development
agenda
Achieving economic growth is essential
for securing long-term development and
poverty reduction: no country has suc-
ceeded in sustainably reducing poverty in
the absence of growth.
Recent volatility in global markets has fo-
cused our attention on growth prospects
in the world’s richest countries. But it
also serves to emphasise the importance
of putting in place the right conditions to
facilitate long-term, sustainable growth in
the developing world, which is needed to
pull millions of people out of poverty.
Growth is however, a complex and multi-
dimensional subject, which encompasses
a huge range of issues, and while some
aspects of the growth agenda are well un-
derstood, others are more contested.
The Economic Outlook of Pakistan
In Pakistan, Pre-existing macroeconomic
imbalances and deep-seated structural
problems have played a large part in pro-
ducing the current economic downturn.
Short term and long term issues there-
fore need to be addressed, but they must
not be seen as independent - the best
short term policies are also good long
term policies.
Role of Education in Economic
Growth
Education has been recognized as the
most important source of competitive
advantage for a nation. It is the key de-
terminant of firm level productivity which
in turn drives business growth and profit-
ability. Technical knowledge, in particular,
is required both for industrial as well as
service development. Technical institu-
tions contribute to the growth of busi-
ness and industry in a variety of ways.
The most influential and direct impact is
through their graduates who bring in new
skills and perspectives to firms. Industries
also seek advanced training on specific
topics as well as consultancy from tech-
nical institutions. Often these institutions
collaborate with academics to design and
develop new technologies. In this paper
we have argued that technical education
plays a crucial role in building these capa-
bilities and consequently in the growth of
industry.
Page - 
i ndustrial
Industrial Option
Introduction to Industrial Option
Industrial Option Newsletter covers all
aspects of business, from Pakistan and in-
ternational market news and analysis of
economic trends to articles on the peo-
ple and technologies that influence how
we do business every day. It is written
expressly for top business decision-mak-
ers and opinion leaders who need an
international outlook in an increasingly
global marketplace. Each month issue
explores the links between domestic Of-
fers reporting, commentary, and analysis
on world politics, finance, and business
trends. Also covers science and technol-
ogy, literature and the arts. When people
get serious about business they read In-
dustrial Option.
IndustrialOption.com an online
businesses to business portal
IndustrialOption.com is a huge commu-
nity of buyers, sellers and industrialists.
For the job to job marketplace, brand can
be merely defined as the lot of images,
image and feelings that are evoked in the
psyche of your customers and prospects
at the reference of your figure.
IndustrialOption.com is one-stop job so-
Industrial Option Newsletter
23-KM, Lahore Sheikhupura Road,
Qila Satar Shah.
Phone: 042-7970711-12
Fax: 042-7970713
Web: http://www.industrialoption.com
Email: info@industrialoption.com
December 2008 | industrialoption.com
lutions for many of the party’s needs. Real
moment market allows buyers to go fast
resolution; two main indicators of party
productivity are Increased Revenue and
Cost Saving. Products offered on a mar-
ket are integrated with the www.indus-
trialoption.com.
There are new benefits that party can ob-
tain from participating in industrialoption.
com market as easily.
For purchaser participants a B2B market
offers as mentioned below:
Time savings: Provides for faster ac-
ceptance, ordering processes and saving
tracking.
Access to original suppliers: B2B
market involvement removes geographic
fences and provides approach to original
suppliers.
Increased sales: With approach to a
wider marketplace, suppliers have the po-
tentiality to increase revenue.
Reduced sales and backing costs By au-
tomating sales and client backing proc-
esses companies can cut over chief costs
around 25-30% well.
Research & Development Federation
http://www.radf.org
OPTION
Reduced elevated costs: Thanks to
sleek supply string elevated costs can be
reduced upward to 30 percentages.
B2B exchanges: The landscape is lit-
tered with hundreds of B2B exchanges
that have failed, demonstrating that suc-
cess is far from automated. But many are
yet operating. They have learned how to
go reward of the opportunities and avert
the drawbacks of this energetic original
merchandising line. The sales string inte-
grated into a Business to Business market
covers every phase of selling procedure
including quote, dialogue, billing and con-
signment tracking.
www.industrialoption.com is an innova-
tive and comprehensive online business-
to-business (B2B) portal, which provides
a professional platform for the Pakistani
exporters, producers, suppliers and oth-
ers who are involved into import-export
trade. Since inception in 2008, Indus-
trialOption emerged as an international
plateau for thousands of consultants,
importers-exporters, agencies and firms
to transact business globally without any
intermediaries.
iIndustrial Option Pvt. Ltd
http://www.industrialoption.com
Page - 
Industrial Option December 2008 | industrialoption.com
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Shehzad Nagina, Chairman Sheikhupura Association of Industry discussing in serious mood

with President SCCI about tope priority issues of business and industry at SCCI office.

NOMINATION IN FPCCI
High Time for FPCCI to realize its responsibilities & accountability

For representation in FPCCI, the Sheikhupura Cham-

ber is nominating two persons for general body of
the federation. From Associate Class Manzoor Ul Haq
Malik, Industrial Option and from Corporate Class
Mohammad Saeed, Premier Paper Mills Ltd.

Out of these two Mr Manzoor Ul Haq Malik is being

nominated for membership in Executive committee
of the federation.
Page - 
The Impact of
University Research
on Industrial
Innovations
Ms. Anum Perviz
(Student, USA)
Almost all schools of thought in econom-
ics agree that industrial innovations pro-
vide the main driving force for economic
growth and that they contribute to the
creation of competition among firms and
countries. In Pakistan, the mechanism link-
ing universities and research institutions
with the productive sector appears to
be ineffective, despite numerous efforts.
For the universities to be effective in stim-
ulating innovation and industrial growth,
they must cooperate with industry. But,
unfortunately, this is not always the case
in developing countries like Pakistan.
There is widespread concern that the
research at universities and scientific in-
stitutes in Pakistan is not focused on the
needs of industry. The research results,
therefore, remain largely unused, and this
has limited the effectiveness of the sci-
ence & technology (S&T) infrastructure
in Pakistan.
Academic research and innovations
in industrialized countries
The importance of universities in pro-
moting technical change and innovation
is widely recognized. This has prompted
increasing concern about university–in-
dustry linkages, as shown by the ever in-
creasing literature in this area.
Various arguments have been used to jus-
tify the growing interest in university–in-
dustry interactions. First, industry–uni-
versity relations have been influenced by
short-term economic considerations and
today’s cutthroat competition. Because
of the global economic recession, many
countries have found it imperative to
marshal their S&T capacities to improve
their competitive position. Because aca-
demic research and development (R&D)
receives a very large portion of the na-
tional research funding in most coun-
tries, academic institutions must in turn
contribute to development. In addition,
the general feeling is that institutions of
Punjab University - Old Campus
higher learning are underused resources
and that explicit policies are required to
effectively incorporate them in the devel-
opment process.
The role of universities and other insti-
tutions of higher learning in the innova-
tion process is natural because of their
multidisciplinary nature, their compe-
tence in undertaking basic research, their
reservoirs of knowledge and information,
and their ability to recruit young talent.
Therefore, the university should be in-
corporated in the national-development
planning process.
For the universities to be effective in stim-
ulating innovation and industrial growth,
they must cooperate with industry. But,
unfortunately, this is not always the case
in developing countries. The universities
in the Pakistan are normally concerned
with their own internal, urgent problems
of staffing, finance, and expansion. On the
other hand, industry is preoccupied with
its own problems, such as lack of ade-
quate markets, institutional rigidities, and
inefficient and inadequate infrastructures,
and is usually unaware that the profes-
sors might have plausible solutions to its
problems. To bridge this gap in communi-
cation, effective linkage between industry
Page - 
Industrial Option
and university should be established. In
certain areas of science the role of uni-
versities is to make the initial fundamental
breakthrough, followed by many years of
basic research to understand the nature
of the process; the role of industry is
commercially to utilize the breakthrough,
concentrating on understanding and
harnessing its effects while being largely
unaware of their causes. Given the very
rapid growth in industrial R&D capability,
industry would largely be unable either to
utilise the potential of the breakthrough
or progressively to enhance this potential.
Industry has thus needed increasingly to
take over the relevant fields of research
itself. At the same time the universities
have gone on to open up new fields of
research, paving the way for the next gen-
eration of industrial applications.
The British Universities and Industry
Joint Committee looked at the ways
companies use university R&D by size of
company. On all the measures of contact
between industry and universities, there
was a marked pattern: the small firms had
by far the fewest contacts. Moreover, out
of 403 firms employing fewer than 200
people (out of a total of 1097 firms), 75%
had little or no contact with universities,
whereas out of 96 firms with more than
5000 employees, only 9% had little or no
contact with universities. A correlation
analysis of the data revealed that having
Industrialized countries and developing
countries are faced with completely differ-
ent environments: both skilled labour and
capital are in short supply in Pakistan.
a higher proportion of scientists in its
senior management increased the likeli-
hood of a smaller firm’s having contacts
with universities. Further analysis showed
that nearly one quarter of the firms ap-
proached universities for technical ad-
vice, and just under one third of them
approached research associations. Com-
panies used universities mainly for the
specialists’ advice or experimental facili-
ties. The general impression given by the
analysis was that most companies did not
regard universities as a major source of
technical advice, except when the univer-
sities could offer specialized knowledge
or expertise.
The Science Policy Research Unit (SPRU)
December 2008 | industrialoption.com
databank of important British innovations
introduced since 1945 has shown that
universities and research associations
have provided major initiating knowledge
in a (combined) average of 4.7% of 2293
innovations in 1945–80. Both universities
and research associations have decreased
in importance as sources of innovation,
whereas the contributions of govern-
ments and individuals have fluctuated.The
databank also yielded information on the
level of university input to firms of differ-
ent sizes: on average, small firms used the
universities less than their larger coun-
terparts did.
Academic research and innovations
in developing countries
Universities and public research estab-
lishments are among the most important
scientific institutions in most countries,
including Third World countries. Univer-
sities usually account for a significant pro-
portion of national research expenditures,
a large share of the scientists engaged in
R&D, and the bulk of a nation’s produc-
tion of S&T research. Unfortunately, de-
spite all this, the contribution of public
R&D institutions in developing countries
is negligible, and studies on the role of
universities and research institutes in in-
dustrial technological change in develop-
ing countries are scarce.
Industrialized countries and developing
Pakistan like most other developing coun-
tries, has assigned industrial programs
a central role in its efforts to create eco-
nomic growth and increase the pace of in-
dustrialization with S&T.
countries are faced with completely dif-
ferent environments: both skilled labour
and capital are in short supply in the Pa-
kistan.
The lack of an effective link between S&T
research institutions and the produc-
tive sectors in developing countries has
been noticed by the larger international
community and has resulted in various
programs of action. An awareness of the
importance and complexity of the prob-
lem led the United Nations Industrial
Development Organization (UNIDO)
to organize an expert group meeting on
industry– university linkage. The empha-
sis of the meeting, held in Vienna in 1973
(UNIDO 1974), was action to be taken by
bilateral and multilateral agencies.
Further attempts by the United Nations
(UN) include the 1979 Vienna Programme
of Action on Science and Technology for
Development, which showed that the
development of strong linkages between
producers and users of R&D is one of the
challenges facing developing countries in
the reinforcement of their S&T capabili-
ties (Nichols 1984).
In 1983, the Lima Panel, under the UN’s
auspices, called for the formation of a
network of institutions (including R&D
and educational institutions, consulting
and engineering firms, private companies,
and public enterprises) to apply the clas-
sical demand-pull and supply-push theo-
ries in the developing countries like they
are applied in the developed countries.
Other meetings organized under the aus-
pices of UNIDO included the Regional
UNIDO–ESCAP Workshop and National
Consultations on the Commercializa-
tion of Research Results, held in Bangkok,
Thailand, in 1984; and the Ad-hoc Expert
Group Meeting on Co-operation among
Universities, Industrial Research Organi-
zations and the Role of UNIDO in this
Co-operation, held in Vienna, Austria, in
1976.
The role of academic research in
industrial innovation: empirical evi-
dence from Pakistan
Pakistan like most other developing coun-
tries, has assigned industrial programs a
central role in its efforts to create eco-
Page - 10
Industrial Option
nomic growth and increase the pace of
industrialization with S&T. Many S&T in-
stitutions have been established, often at
a great cost. Unfortunately, most of these
institutions work in isolation, without ef-
fective linkages with the productive sec-
tor. There is, thus, a need for a greater
understanding of the factors that could
lead to improved interactions between
scientific research institutions and indus-
try and to the enhancement of Pakistan’s
industrialization process.
Academic and Research Institutions are
never ends in themselves. They have rea-
son to exist only as they meet the de-
mands of existing firms or serve as toll
for technology policy development and
propagation. Hence their creation, objec-
tives, structure and programmes must be
measured against their ability to make
these ends.... Institutions have been cre-
ated without sufficient consideration
of what their role should be in carrying
out adopted policy. These institutions, as
well as their programmes and activities,
have been established without sufficient
thought as to whether they are in accord
with overall national industrial policy.
The university administration’s view
on collaborative research
Just like the government, the Universities
in Pakistan do not seem to have any ex-
Just like the government, the Universities in Pakistan do not seem to
have any explicit policy regarding its association with local industries.
plicit policy regarding its association with
local industries.
Characteristics of industry–research
interactions
To measure the extent of collaborations
resulting from an industry–research in-
terface, it is important to identify suc-
cessful and unsuccessful linkages and the
benefits and impediments connected with
such collaborations. I found it difficult to
compare the levels of success or failure
of linkages and the resulting impacts on
the collaborating partner because the
collaborative projects were dissimilar,
reflecting differences in organizations,
personalities, disciplines, institutional and
economic contexts, and stages of devel-
opment and operation. The measurement
of success was also affected by the meth-
od of interaction (formal or informal) and
by the modes of interaction, that is, the
modes of industrial financial support for
December 2008 | industrialoption.com
research (donations, transfers, and ex-
changes and sharing of staff, equipment,
and information).
For the sake of simplicity, we assumed that
successful interactions were those that
both parties were pleased with. However,
this does not imply that there was a net
financial gain in the exercise. Unsuccessful
programs were those that failed to bring
about or sustain institutional interaction,
despite various efforts to do so.
The Role of Universities Today: Crit-
ical Partners in Economic Development
and Global Competitiveness
Universities as Knowledge Creators
Universities are the indispensable players
in the advancement of scientific knowl-
edge, which continuously seeds new gen-
erations of applied research, scientific
breakthroughs and streams of new prod-
ucts that enhance our lives and strength-
en our economy.
Universities play a central and strategic
role in educating and training the scien-
tists, teachers, researchers, entrepreneurs
and other skilled workers that fuel inno-
vation in high technology and the knowl-
edge industries that are the primary
drivers of successful regional economies
today and are predicted to be
the drivers of the global economy well
into the future.
Universities, especially large ones like the
Virtual University Pakistan, foster equity
and “level the playing field” through the
dissemination of knowledge and ideas by
way of student education, faculty interac-
tions, collaborations with industry, com-
munity outreach activities, and through a
variety of virtual-world mechanisms such
as online training, digital libraries
and e-learning.
Universities, Entrepreneurs and
Competitive Businesses
Universities are innovation accelerators.
Innovation centers around three ingredi-
ents: knowledge creators, knowledge, and
knowledge diffusion and application—all
three form the core of the activities of
today’s leading universities. Talented peo-
ple create the knowledge; universities dif-
fuse that knowledge throughout society;
and innovators and entrepreneurs, often
in collaboration with universities, take
advantage of these ideas and bring new
products and services to market and into
our homes and offices.
Universities are key players in the gen-
eration of entrepreneurs who form start-
ups and expand businesses, thus creating
thousands of new jobs—often higher pay-
ing skilled jobs for local residents—and
new income streams that catalyze
further investment in the economy, which
generates still more jobs, personal income
and capital investment.
Universities are the conveyors of “seed
money” for exploratory research—a key
ingredient to the acceleration of innova-
tion and the development of new prod-
ucts and services that result in start-ups
and spin-offs.
Universities generate new and applied
scientific knowledge that is needed and
used by local high-tech companies to
expand their businesses and maintain
their competitiveness. University faculty
and students are an important source of
technical expertise for local firms and a
significant source of productivity gains.
Universities are important purchasers of
local products and services and thus are a
significant catalyst to the emergence and
development of a local supply chain, in-
cluding many small businesses.
At the Forefront of Job Training and
Re-skilling
Universities are often the unsung heroes
of on-the-job training for graduate stu-
dents and interns who can work on actu-
al industry research and application thus
providing necessary resources to indus-
try while also refining their own skills and
knowledge resulting in greater efficiencies
and productivity upon graduation.
Universities and their extension programs
offer accessible means to continually up-
grade skills, acquire industry-specific ap-
plied skills and learn new knowledge and
skills for moving into better jobs or new
careers.
In these ways, today’s best universities
mean so much more to their communi-
ties’ future than just a place for smart
kids and great scientists.
Page - 11
2008 Economic Crisis
In 2008, a global economic crisis was suggested by several important indi-
cators of economic downturn worldwide. These included high oil prices,
which led to both high food prices (due to a dependence of food pro-
duction on petroleum,
crop products
and biodiesel
native to pe-
global inflation;
credit crisis leading
large and well established investment banks as well as commercial banks
in various nations around the world; increased unemployment; and the
possibility of a global recession.
High commodity prices
Medium term crude oil prices, (not ad-
justed for inflation). The decade of the
2000s saw a commodities boom, in which
the prices of primary commodities rose
again after the late-twentieth century
commodities recession of 1980-2000. But
in 2008, the prices of many commodities,
In 2008, the prices of many commodities, no-
tably oil and food, rose so high as to cause
genuine economic damage, threatening stag-
flation and a reversal of globalisation.
notably oil and food, rose so high as to
cause genuine economic damage, threat-
ening stagflation and a reversal of globali-
sation.
In January 2008, oil prices surpassed
$100 a barrel for the first time, the first
of many price milestones to be passed in
the course of the year. By July the price
of oil reached as high as $147 a barrel
although prices fell soon after.
The food and fuel crises were both dis-
cussed at the 34th G8 summit in July.
Sulfuric acid (an important chemical
commodity used in processes such as
steel processing, copper production and
bioethanol production) increased in price
6-fold in less than 1 year whilst producers
as well as using food
such as ethanol
as an alter-
troleum) and
a substantial
to the bankruptcy of
Ms. Sabahat Ali (Corporate Law Student, USA)
of sodium hydroxide have declared force
majeur due to flooding, precipitating simi-
larly steep price increases.
In the second half of 2008, the prices of
most commodities fell dramatically on
expectations of diminished demand in a
world recession.
Trade
In mid-October 2008, the Baltic Dry In-
dex, a measure of shipping volume, fell
by 50% in one week, as the credit crunch
made it difficult for exporters to obtain
letters of credit.
Inflation
In February 2008, Reuters reported that
global inflation was at historic levels, and
that domestic inflation was at 10-20 year
highs for many nations. “Excess money
supply around the globe, monetary eas-
ing by the Fed to tame financial crisis,
growth surge supported by easy mon-
etary policy in Asia, speculation in com-
modities, agricultural failure, rising cost of
imports from China and rising demand of
food and commodities in the fast growing
emerging markets,” have been named as
possible reasons for the inflation.
In mid-2008, IMF data indicated that in-
flation was highest in the oil-exporting
countries, largely due to the unsterilized
growth of foreign exchange reserves, the
term “unsterilized” referring to a lack of
monetary policy operations that could
offset such a foreign exchange interven-
tion in order to maintain a country´s
monetary policy target. However, infla-
tion was also growing in countries clas-
sified by the IMF as “non-oil-exporting
LDCs” (Least Developed Countries) and
“Developing Asia”, on account of the rise
in oil and food prices.
Inflation was also increasing in the devel-
oped countries, but remained low com-
pared to the developing world.
Unemployment
The International Labour Organization
predicted that at least 20 million jobs will
have been lost by the end of 2009 due to
the crisis - mostly in “construction, real
estate, financial services, and the auto
sector” - bringing world unemployment
above 200 million for the first time.
Return of volatility
For a time, major economies of the 21st
Page - 12
Industrial Option
century were believed to have begun a
period of decreased volatility, which was
sometimes dubbed The Great Modera-
tion, because many economic variables
appeared to have achieved relative sta-
bility. The return of commodity, stock
market, and currency value volatility are
regarded as indications that the concepts
behind the Great Moderation were guid-
ed by false beliefs.
Economic governance
In the final quarter of 2008, the finan-
cial crisis saw the G-20 group of major
economies assume a new significance as
a locus of economic and financial crisis
management.
Number of U.S. household properties
subject to foreclosure actions by quarter
In the final quarter of 2008, the financial cri-
sis saw the G-20 group of major economies
assume a new significance as a locus of eco-
nomic and financial crisis management.
The United States entered 2008 during
a housing market correction, a subprime
mortgage crisis and a declining dollar
value. In February, 63,000 jobs were lost,
a 5-year record. In September, 159,000
jobs were lost, bringing the monthly aver-
age to 84,000 per month from January to
September of 2008.
Possible recession
In the early months of 2008, many ob-
servers believed that a U.S. recession had
begun. As a direct result of the collapse
of Bear Stearns, Global Insight increased
the probability of a worse-than-expected
recession to 40% (from 25% before the
collapse). In addition, financial market tur-
bulence signaled that the crisis will not be
mild and brief.
Alan Greenspan, ex-Chairman of the Fed-
eral Reserve, stated in March 2008 that
the 2008 financial crisis in the United
States is likely to be judged as the harsh-
est since the end of World War II. A chief
economist at Standard & Poor’s, said in
March 2008 he has a worst-case-scenario
in which the country could endure a dou-
ble-dip recession in which the economy
would briefly recover in the summer
2008. Under this scenario, the econo-
my’s total output, as measured by the
December 2008 | industrialoption.com
gross domestic product, would drop by
2.2 percentage points, making it the third
worst recession in the post World War
II period.
The former head of the National Bureau
of Economic Research said in March 2008
he believed the country was then in a
recession, and it could be a severe one.
A number of private economists gener-
ally predicted a mild recession ending in
the summer of 2008 when the economic
stimulus checks going to 130 million
households started being spent. A chief
economist at Moody’s predicted in March
2008 that policymakers would act in a
concerted and aggressive way to stabilize
the financial markets, and that then the
economy would suffer but not enter a
prolonged and severe recession.[citation
needed] It takes many months before the
National Bureau of Economic Research,
the unofficial arbiter of when recessions
begin and end, makes its own ruling.
In the early months of 2008, many observers believed that a
U.S. recession had begun. As a direct result of the collapse
of Bear Stearns, Global Insight increased the probability of
a worse-than-expected recession to 40% (from 25% before
the collapse).
According to numbers published by Bu-
reau of Economic Analysis in May 2008,
the GDP growth of the previous two
quarters was positive. As one common
definition of a recession is negative eco-
nomic growth for at least two consecu-
tive fiscal quarters, some analysts suggest
this indicates that the U.S. economy was
not in a recession at the time. However
this estimate has been disputed by some
analysts who argue that if inflation is taken
into account, the GDP growth was nega-
tive for the past two quarters, making it
a technical recession. In a May 9, 2008,
report, the chief North American econo-
mist for investment bank Merrill Lynch
wrote that despite the GDP growth re-
ported for the first quarter of 2008, “it is
still reasonable to believe that the reces-
sion started some time between Septem-
ber and January”, on the grounds that the
National Bureau of Economic Research’s
four recession indicators all peaked dur-
ing that period.
New York’s budget director concluded
the state of New York was officially in
a recession. Governor David Paterson
called an emergency economic session
of the state legislature for August 19 to
push a budget cut of $600 million on top
of a hiring freeze and a 7 percent reduc-
tion in spending at state agencies already
implemented by the Governor. An Au-
gust 1 report, issued by economists with
Wachovia, said Florida was officially in a
recession.
White House budget director Jim Nussle
said the U.S. avoided a recession follow-
ing revised GDP numbers from the Com-
merce Department showing a 0.2 percent
contraction in the fourth quarter of 2007
down from a 0.6 percent increase and a
downward revision to 0.9 percent from 1
percent in the first quarter of 2008. The
GDP for the second quarter was placed
at 1.9 percent below an expected 2 per-
cent. Martin Feldstein, who headed the
National Bureau of Economic Research
until June and serves on the group’s re-
cession-dating panel, said he believed the
U.S. was in a very long recession and that
there was nothing the Federal Reserve
could do to change it.
In a CNBC interview at the end of July
2008 Alan Greenspan said he believed the
U.S. was not yet in a recession, but that it
could enter one due to a global economic
slowdown.
A study released by Moody’s found two-
thirds of the 381 largest metropolitan ar-
eas in the United States were in a reces-
sion. The study also said 28 states were
in recession with 16 at risk. The findings
were based on unemployment figures and
industrial production data.
In March 2008, Warren Buffett stated in
a CNBC interview that by a “common
sense definition”, the U.S. economy is al-
ready in a recession. Warren Buffett has
also stated that the definition of recession
is flawed and that it should be 3 quarters
Page - 13
Industrial Option
of GDP growth that is less than popula-
tion growth. However, the U.S. only expe-
rienced two consecutive quarters of GDP
growth less than population growth.
Rise in unemployment
On September 5, 2008, the United States
Department of Labor issued a report
that its unemployment rate rose to 6.1%,
the highest in five years. The news report
cited the Department of Labor reports
and interviewed Jared Bernstein, an econ-
omist:
The unemployment rate jumped to 6.1
percent in August, its highest level in five
years, as the erosion of the job market ac-
celerated over the summer. Employers cut
84,000 jobs last month, more than econo-
mists had expected, and the Labor De-
partment said that more jobs were lost in
June and July than previously thought. So
far, 605,000 jobs have disappeared since
January. The unemployment rate, which
rose from 5.7 percent in July, is now at its
highest level since September 2003. Jared
Bernstein, economist at the Economics
Policy Institute in Washington, said eight
months of consecutive job losses had his-
torically signaled that the economy was
in a recession. “If anyone is still scratching
their head over that one, they can stop,”
Mr. Bernstein said. Stocks fell after the re-
lease of the report, with the Dow Jones
industrials down about 100 points after
about 40 minutes of trading.
—New York Times
CNN also reported the news, quoted an-
other economist, and placed the news in
context:
“Job losses are still mild by recession
standards, but the losses are relentless
and they are accumulating,” said Bob Br-
usca of FAO Economics.“If job growth had
paced with population growth during this
year, it would have meant 1.3 million new
jobs would have been created. Instead
605,000 were lost. That means about 2
million fewer people are working than if
the economy were on a steady path. And
that’s a big number.” But while econo-
mists generally study the payroll numbers
most closely, it’s the unemployment rate
that registers with most Americans when
they think about the labor market.
Liquidity crisis
In early July, depositors at the Los Angeles
December 2008 | industrialoption.com
offices of IndyMac Bank frantically lined
up in the street to withdraw their money.
On July 11, IndyMac - the largest mort-
gage lender in the US - was seized by
federal regulators. The mortgage lender
succumbed to the pressures of tighter
credit, tumbling home prices and rising
foreclosures. That day the financial mar-
kets plunged as investors tried to gauge
whether the government would attempt
to save mortgage lenders Fannie Mae and
Freddie Mac. The two were placed into
conservatorship on September 7, 2008.
During the weekend of September 13–14,
Lehman Brothers declared bankruptcy af-
ter failing to find a buyer, Bank of America
agreed to purchase Merrill Lynch, the
insurance company AIG sought a bridge
loan from the Federal Reserve, and a con-
sortium of 10 banks created an emergen-
cy fund of at least $70 billion to deal with
the effects of Lehman’s closure, similar to
the consortium put forth by J.P. Morgan
during the stock market panic of 1907
and the crash of 1929. Stocks on “Wall
Street” tumbled on September 15.
On September 16, news emerged that
the Federal Reserve may give AIG an $85
As of October 2008, stocks in North America, Europe, and the
Asia-Pacific region had all fallen by about 30% since the begin-
ning of the year. The Dow Jones Industrial Average had fallen
about 37% since January 2008.
billion (£48 billion) rescue package; on
September 17, 2008, this was confirmed.
The terms of the rescue package were
that the Federal Reserve would receive
an 80% public stake in the firm. The big-
gest bank failure in history occurred on
September 25 when JP Morgan Chase
agreed to purchase the banking assets of
Washington Mutual.
The year 2008 as of September 17 has
seen 81 public corporations file for bank-
ruptcy in the United States, already higher
than the 78 in 2007. Lehman Brothers be-
ing the largest bankruptcy in U.S. history
also makes 2008 a record year in terms
of assets with Lehman’s $691 billion in as-
sets all past annual totals. The year also
saw the ninth biggest bankruptcy with the
failure of IndyMac Bank.
The Wall Street Journal states that ven-
ture capital funding has slowed down
which in the past led to unemployment
and slowed new job creation.
Financial markets
January 2008 was an especially volatile
month in world stock markets, with a
surge in implied volatility measurements
of the US-based S&P 500 index, and a
sharp decrease in non-U.S. stock market
prices on Monday, January 21, 2008 (con-
tinuing to a lesser extent in some markets
on January 22). Some headline writers
and a general news columnist called Janu-
ary 21 “Black Monday” and referred to a
“global shares crash,” though the effects
were quite different in different markets.
American stock markets were closed on
Monday, January 21 for Martin Luther
King, Jr. Day. Seemingly in response to the
fall in non-U.S. markets, the U.S. Federal
Reserve announced a surprise rate cut
of 0.75% on Tuesday at 8 a.m. This rate
cut is believed to have been influential in
preventing large declines in the American
stock markets, with the Dow Jones In-
dustrial Average down only 1.1% for the
day, never closing that week worse than a
1.6% decrease from the previous Friday,
and indeed closed up for the week. Later
it was announced that Société Générale,
one of the largest banks in Europe, ac-
cused its employee Jérôme Kerviel of
fraudulent trades costing it €4.9 billion,
and causing it to sell approximately €50
billion in European equity derivatives
from January 21–23.
The effects of these events were also
felt on the Shanghai Composite Index in
China which lost 5.14 percent, most of
this on financial stocks such as Ping An In-
surance and China Life which lost 10 and
8.76 percent respectively. Investors wor-
ried about the effect of a recession in the
US economy would have on the Chinese
economy. Citigroup estimates due to the
number of exports from China to Amer-
ica a one percent drop in US economic
growth would lead to a 1.3 percent drop
in China’s growth rate.
Market downturn Fall 2008
As of October 2008, stocks in North
America, Europe, and the Asia-Pacific
region had all fallen by about 30% since
the beginning of the year. The Dow Jones
Page - 14
Industrial Option
Industrial Average had fallen about 37%
since January 2008.
There were several large Monday de-
clines in stock markets world wide dur-
ing 2008, including one in January, one in
August, one in September, and another in
early October.
The simultaneous multiple crises affecting
the US financial system in mid-September
2008 caused large falls in markets both in
the US and elsewhere. Numerous indica-
tors of risk and of investor fear (the TED
spread, Treasury yields, the dollar value of
gold) set records.
Russian markets, already falling due to
declining oil prices and political tensions
with the West, fell over 10% in one day,
leading to a suspension of trading, while
other emerging markets also exhibited
losses.
On September 18, UK regulators an-
nounced a temporary ban on short-selling
of financial stocks. On September 19 the
United States’ SEC followed by placing a
temporary ban of short-selling stocks of
799 specific financial institutions. In addi-
tion, the SEC made it easier for institu-
tions to buy back shares of their institu-
tions.
On September 22, the Australian Securi-
ties Exchange (ASX) delayed opening by
an hour [161] after a decision was made
by the Australian Securities and Invest-
ments Commission (ASIC) to ban all
short selling on the ASX. This was re-
vised slightly a few days later.
Causes of the crises
On October 15, 2008, Anthony Faiola,
Ellen Nakashima, and Jill Drew wrote a
lengthy article in the Washington Post
titled, “What Went Wrong”. In their in-
vestigation, the authors claim that former
Federal Reserve Board Chairman Alan
Greenspan, Treasury Secretary Robert
Rubin, and SEC Chairman Arthur Levitt
vehemently opposed any regulation of
financial instruments known as deriva-
tives. They further claim that Greenspan
actively sought to undermine the office
of the Commodity Futures Trading Com-
mission, specifically under the leadership
of Brooksley E. Born, when the Commis-
sion sought to initiate regulation of de-
rivatives. Ultimately, it was the collapse
of a specific kind of derivative, the mort-
December 2008 | industrialoption.com
gage-backed security, that triggered the
economic crises of 2008.
On October 17, 2008, attorney Timothy
D. Naegele wrote an article in the Ameri-
can Banker entitled, “Greenspan’s Finger-
prints All Over Enduring Mess,” which
argues that Alan Greenspan’s actions and
inactions triggered the economic crises of
2008. The article discusses ‘the economic
tsunami that has been rolling worldwide
with devastating effects’; and the author
asserts that ‘Greenspan is the architect
of the enormous economic “bubble” that
burst globally’. The author cites Giulio
Tremonti, Italy’s Minister of Economy and
Finance, who said: “Greenspan was con-
sidered a master. Now we must ask our-
selves whether he is not, after [Osama]
bin Laden, the man who hurt America the
most.”
While Greenspan’s role as Chairman of
the Federal Reserve has been widely dis-
cussed (the main point of controversy
remains the lowering of Federal funds
rate at only 1% for more than a year
which, according to the Austrian School
of economics, allowed huge amounts of
“easy” credit-based money to be injected
into the financial system and thus create
Many libertarians, including Congressman and former
2008 Presidential candidate Ron Paul and Peter Schiff
in his book Crash Proof, predicted the crisis prior to its
occurrence.
an unsustainable economic boom), there
is also the argument that Greenspan ac-
tions in the years 2002-2004 were actual-
ly motivated by the need to take the U.S.
economy out of the early 2000s reces-
sion caused by the bursting of dot-com
bubble - although by doing so he did not
help avert the crisis, but only postpone it.
Many libertarians, including Congressman
and former 2008 Presidential candidate
Ron Paul and Peter Schiff in his book
Crash Proof, predicted the crisis prior to
its occurrence. They are critical of theo-
ries that the free market caused the crisis
and instead argue that the Federal Re-
serve’s printing of money out of thin air
and the Community Reinvestment Act are
the primary causes of the crisis. However
Alan Greenspan himself has conceded he
was partially wrong to oppose regulation
of the markets, and expressed “shocked
disbelief” as the failure of the self inter-
est of the markets, which according to
neo-liberal economic theory should have
protected shareholder equity.
It has also been argued that the root
cause of the crisis is overproduction of
goods caused by globalization. Professor
Herman Daly suggests that it is not ac-
tually an economic crisis, but a crisis of
overgrowth beyond sustainable ecologi-
cal limits.
List of Countries which experienced
recession in 2008
Many countries experienced a recession
in 2008.
Denmark and Iceland went into recession
in the first quarter of 2008, but came out
again in the second quarter.
The following countries went into reces-
sion in the second quarter of 2008: Esto-
nia, Latvia, Ireland and New Zealand.
The following countries went into reces-
sion in the third quarter of 2008: Japan,
Hong Kong, Singapore, Italy and Ger-
many.
As a whole the fifteen nations in the Eu-
ropean Union that use the euro went into
recession in the third quarter.
Official forecasts
On November 3, 2008, according to all
newspapers, the EU-commission in Brus-
sels predicted for 2009 only an extremely
low increase by 0.1% of the BIP, for the
countries of the Euro-zone (France,
Germany, Italy, etc.). They also predicted
negative numbers for the UK (-1.0% !),
Ireland, Spain, and other countries of the
EU. Three days later, the IMF at Washing-
ton, D.C., predicted for 2009 a worldwide
decrease, -0.3%, of the same number, on
average over the developed economies (-
0.7% for the US, and -0.8% for Germany).
Economically, the car industry is especial-
ly concerned; as a consequence, several
countries have already launched immedi-
ate help-packages, each involving several
billions of dollars, euros or pounds.
Page - 15
Industrial Option
Corruption and Bribery: Poverty and
Economic Development Impacts
Corruption and bribery are not victim-
less crimes. They hit the poorest people
hardest and undermines economic devel-
opment.
No country is immune from corruption.
It flourishes where the criminal justice
system and governance are weak, where
decision-making is unaccountable and ac-
cess to decision-makers is dependent on
restricted social networks, where pay is
low and where management controls are
weak.
Poor people are the worst affected
by corruption
The World Bank notes that the poor suf-
fer the most from the petty corruption
for the provision of public services: “Em-
pirical analysis has shown that the poor
pay a higher share of their income on
bribes than the rich” An IMF study shows
that an increase of just 0.78 per cent in
corruption reduces the income growth
of the poorest 20 per cent of the people
in a country by 7.8 per cent a year. The
Final Communiqué from the 2006 G8 St.
Petersburg Summit is clear: “The net ef-
fect of corruption is felt most directly, and
disproportionately, by the poor.”
Corruption compromises the effec-
tiveness of aid
An estimated $100 billion of World Bank
loans have been lost to corruption since
the Bank’s foundation in December 1945;
“In poor countries, [corruption] can kill.
Money meant for drugs for a sick child, or
to build a hospital, can be siphoned off into
overseas bank accounts or to build a luxury
house.”
- Hilary Benn, Former UK Secretary of State for International Development
when other multilateral development
banks are included, the figure rises to
$200 billion. Such ‘leakage’ leads to aid
‘disappearing’ before it reaches the poor.
Corruption diverts expenditure away
from health, education and the mainte-
nance of infrastructure to high ‘kickback’
areas such as new construction and de-
fence
December 2008 | industrialoption.com
The World Bank points out that “while
this corruption hurts society in general, it
hurts the poor most since they are more
vulnerable and dependent on the quality
of governance and state support.”
Corruption creates incentives for invest-
ment in capital-intensive projects at the
expense of labour-intensive industries,
which traditionally employ poorer peo-
ple.
Corruption reduces a government’s tax
revenue by as much as half, thereby re-
ducing income available for reducing pov-
erty
Corruption increases the cost of
projects
In the construction industry, project
costs typically increase by more than 25
per cent as a result of corruption. Simi-
“Bribery and corruption...impede the efforts to re-
duce poverty. In particular, the diversion of funds
through corrupt practices undermines attempts by
citizens to achieve higher levels of economic, social
and environmental welfare.”
- OECD
lar mark-ups have been reported in the
defence and finance sectors. The Asian
Development Bank (ADB) states that
“corruption can add between 20 per cent
and 100 per cent to the procurement of
government goods and services”. Overall
corruption-related losses can total “more
than a country’s foreign debt”.
“Corruption is a key element in
economic under performance
and a major obstacle to poverty
alleviation and development”
- UN Convention against Corruption
Overpriced and poorly planned projects
increase unsustainable nation debt. When
countries cannot keep up with the debt
repayments, cuts in public services fall
disproportionately on poorer people.
The arms trade is the most corrupt busi-
ness in the world. Every year, some $40
billion worth -- give or take a few billion
dollars – of tanks, artillery, bombs, gre-
nades, rocket launchers, attack helicop-
ters, fighters and other lethal weapons
are traded around the world. Of that to-
tal, an estimated $3 billion is thought to
consist of bribes, generally paid through
‘agents’ in the form of ‘commissions’.
Without these bribes, many arms deals
would simply not happen.
Corruption deprives countries of fi-
nance for development
The impacts of corruption on investment
and economic growth are complex. Multi-
lateral Development Banks estimate that
some $400 billion has been looted from
African states and stashed in foreign bank
accounts, around $140 billion from Niger-
ia alone.The African Unions estimates the
$148 billion a year leaves the continent
because of corruption, and 80-90 per
cent of the illicit overflows never return
to the continent. Between $20-40 billion
of corrupt money is estimated to flow
from transition and developing countries
into Western banks annually.
Improved governance benefits poor-
er people
“countries that improve on control of
corruption and rule of law can expect
(on average), in the long run, a four-fold
increase in incomes per capita. Thus, a
country with an income per capita of US
$ 2,000 could expect to attain US $ 8,000
in the long run by making strides to con-
trol corruption. Similarly, such a country
could expect, on average, a 75% reduction
in child mortality”. - World Bank
Page - 16
Industrial Option
5 Super Tips to Get
Rid of Your Public
Speaking Fear
By Charles Wilson, USA
I have seen many people around who
most of the times hesitate to make a
public speech. Many of the times it hap-
pens because those people really have
fear in their minds for public speaking. I
have personally experienced the feeling
of inferiority or fear of not having much
knowledge about the topic of speech.
These are the major reasons for hav-
ing public speaking fear. And after a lot
of hard work and continuous practice I
managed to overcome my public speak-
ing fear. Here are my 5 super tips for you
people who want to get rid of their public
speaking fear.
1) Don’t get scared to make mistakes:
Yes when it comes to public speaking you
are bound to make some minor or ma-
jor mistakes. But it is the part and parcel
of public speech. Don’t be afraid of doing
mistakes during your public speech. Only
thing is that you should learn from your
mistakes and try not to make those next
time when you are presenting. Even if you
make a mistake during your speech then
don’t get panic and try to remain calm
and cool which will definitely help you to
present yourself in a better way.
2) Be creative and select your topic which
you are most passionate about: When
you are going to present yourself in pub-
lic speaking, it is the primary thing that
the topic of the speech should be the one
which you know very well and you have
a real passion about that topic. Because
when you are going to speak about that
topic then your heart and mind will pro-
duce the most effective and most creative
presentation you have ever presented.
This is very important as you already are
very confident and well knowledgeable
about the subject and your audience will
also take keen interest in your presenta-
tion.
3) Build a strong, positive attitude in
yourself: When it comes to any kind of
public speech it is mandatory that you
should have the requisite confidence in
yourself and you should have as strong
belief in your abilities. This will only come
when you will look at yourself as a most
December 2008 | industrialoption.com
knowledgeable and highly positive person
in your life. So it is the most important
factor in making your public speech suc-
cessful and without any fear.
4) Practice in front of your mirror: This
is the most successful idea behind mak-
ing your public speech successful. This
activity will really boost your confidence
because you have already rehearsed what
you want to speak in front of your audi-
ence.And this is the most successful tech-
nique which many well known speakers
were using it. This is the most important
confidence building method I have ever
seen in my life. Believe me after 4-5 prac-
tice sessions in front of your home mir-
ror; it will tremendously increase your
confidence and belief in yourself.
5) Use props creatively during your pres-
entation:This is truly confidence boosting
method.You get enough time to calm your
nerves and build confidence in yourself as
you effectively use props during presenta-
tion. Using PowerPoint slides and other
props gives your audience visual aid to
make them comfortable with the topic
and that can also increase the interest
of your audience in the topic and most
importantly it gives you enough time to
prepare yourself with the next points to
be delivered which also reduces the fear
and nervousness in your mind.
By applying these simple tips you can eas-
ily overcome your public speaking fear
and can confidently present yourself in
front of your audience.
SWOT Analysis- To
Make Your Business
More Profitable
By Crack Marketing, USA
SWOT Analysis is a well-known method
for describing a business or business
propositions in terms of those factors
that can have the maximum impact. The
business owner does this analysis in order
to improve the current position of the
business. The Strengths and Weaknesses
of the business are considered to be the
internal aspects of a business, such as the
quality of the product or the manage-
rial skills. Whereas the Opportunities and
Threats are the external factors, like the
development of a completely new market
or the arrival of new competitors.
The strengths and weaknesses of a
business can be found in the follow-
ing:
. Management sector: The over de-
pendence of an employee on a manager
or an owner is one of the major weak-
nesses in a business that often leads to
the requirement of more managers. This
area needs to be worked upon in order
to reduce the expense of the organiza-
tion and to improve the business.
. The work force: The difficulty in find-
ing skilled staff as well as the employee
turnover has to be handled efficiently to
help a business grow successfully.
. Sales: The strength of sales, how de-
pendent your sales are on external fac-
tors, and cyclical sales are some of the
factors that affect the business.
. Financial: The factors affecting the fi-
nancial condition of your business deter-
mine its strengths and weaknesses. The
major aspects related to finance are the
flow of cash, time to collect on invoices,
and the ease of obtaining loans.
. Operations: Strengths and weaknesses
are also determined by the internal effi-
ciency as well as the speed of manufac-
ture and delivery of goods.
Opportunities and threats are found
in the following categories:
. Threats posed by the new rivals in
the market: A new entrant in the mar-
ket, selling a similar product or service,
is considered to be one of the greatest
threats, as you might not have a patent
that could put a brake on new competi-
tors.
. Bargaining power of suppliers: Sup-
pliers can pose a major threat for the
business as they might force you to take
large deliveries. Many times they are also
difficult to find, or the supply may not be
available.
. Customer influence: There are some
businesses that rely on a handful of cus-
tomers, which include a lot of late pay-
ers. In addition, many customers bar-
gain for lower prices. (Cont Page - 22)
Page - 17
Industrial Option December 2008 | industrialoption.com

Achievement
‘China trip to help bolster ance for setting up
a Pak-China Cultural
An MoU was also signed during Shahbaz’s
visit to the famous Shen Zen Industrial
economy’ Centre in Lahore. A
number of memo-
Park with a view to establish a similar
park in Punjab. During his visit to Hong
The visit to China has been successful randums of under- Kong, the chief minister said that his gov-
and will leave a far-reaching impact on the standing (MoU) were also signed for joint ernment intends to set up 50-megawatt
economy of Punjab as well as the country, ventures in steel production, coal and raw solar energy power projects in Punjab
Punjab Chief Minister Shahbaz Sharif said
on Saturday. Shahbaz was said was talking
to reporters at the Lahore airport upon
his arrival from China. He said that dur-
ing his stay in China, a number of agree-
ments were signed in the agriculture, in-
dustrial and power sectors that will prove
beneficial for Pakistan, adding that China
and Pakistan have deep-rooted relations,
which are strengthening with time. Dur-
ing his visit, the chief minister tried to
seek co-operation of Chinese investors
in agriculture, irrigation, power genera-
tion, infrastructure development, educa-
tion and the uplift of other sectors. He
also discussed setting up of an industrial
estate in Sheikhupura. During his meeting
with China’s Vice Minister for Agriculture,
Niu Dun, matters regarding construction
of new dams, drip irrigation system, pesti-
cides and increase in agricultural produc-
tion in Punjab were discussed. Prospects
for co-operation in agriculture, power
generation, infrastructure and training iron mining and wastewater management. and assured independent power produc-
of manpower were also explored. Shah- Matters regarding cultivation in desert ar- ers of Hong Kong of purchasing all elec-
baz also assured China of Punjab gov- eas of Cholistan and Bahawalpur through tricity that would be produced by them.
ernment’s full co-operation and assist- drip irrigation were also deliberated upon.

Attention
Unfortunately, at SCCI we face numerous prob- 6. Educational and Vocational Institutions
lems and thereby request Chief Minister to pay 7. Entertainment Parks
his kind attention to following as well. 8. Transportation
9. Fire Brigade Station
1. Health Care Centers 10. Drainage Facility with Filtration Plant
2. Community Centers 11. Inauguration of Motorway
3. Trauma Center 12. Sports Grounds
5. Employee Resident Colonies 13. Gas & Electricity Problems

Many Thanks
The SCCI President Mr. Manzoor Malik, Vice Presidents and Executive
Committee members have thanked to all government officials, nation-
wide chambers and associations who have congratulated us on success
of SCCI Elections 2008 and offered their full support.
Page - 18
Industrial Option December 2008 | industrialoption.com

Elected Office Bearers Sheikhupura Chamber of Commerce &

Industry for the period of 2008-2009

President
Mr. Manzoor Ul Haq Malik

Vice President Vice President

Muhammad Tariq Iqbal Mughal Amjad Nazir Butt
Mughal Steel Mills, Pvt. Ltd. Madina Trading company

Woman Member
Mrs. Qaisara Zulfiqar
Al-Aziz Paper Mill, Narowal Road, Muridkay

Page - 19
Industrial Option December 2008 | industrialoption.com

Elected Office Bearers Sheikhupura Chamber of Commerce &

Industry for the period of 2008-2009
Executive Members
NO Associate Class Corporate Class
1 Sheikh Abdul Hafeez Ali Abbas
M/s S. Abdul Ghafoor & Sons Sheikhupura Mandiali Paper Mill Pvt. Ltd.

2 Imtiaz Ashraf Aulakh Muhammad Saeed

Aulakh Commission Shop Sheikhupura Premier Paper Mills Ltd.

3 Muhammad Ramzan Ch. Zahid Hafeez

Hassan Board Industries GT Road Kala Shah Kaku Zahid Hafeez & Brothers

4 Haji Muhammad Ilyas Faraz Ahmad Malik

Farooq Abad Malik Board & Paper Pvt. Ltd.

5 Haji Muhammad Ramzan Muhammad Shoaib

Al-Hamd Cloth House Sheikhupura Al-Munawar PVC Pvt. Ltd.

6 Ch. Nadeem Safdar A.R Khan

Model Soap Factory, Sheikhupura Super Theramics

7 Sohail Iqbal Mian Haseeb Haroon

M. Iqbal Hussain & Company Sheikhupura AHN Steels Pvt. Ltd.

8 Ch. Tahir Majeed Mian Mohammad Sana Ullah Salman

Ch. Tahior Majeed & Co. Sheikhupura Ajmair Traders (National Pipe).

9 Malik Mushtaq Ahmad Sammi Farooq

Sky Interbnational, Muridkay Jammal PVC pvt ltd.

10 Haji Abdul Kareem Khuram Javed Mughal

Ch. Muhammad Baqar Khan & Company, Jhabran. Al-Bashir Steel Mills Pvt. Ltd.

Page - 20
Industrial Option December 2008 | industrialoption.com

Event

LCCI PIAF FOUNDER DELEGATE VISITS SCCI

Page
Page -- 21
21
Industrial Option
(See Page 17) In such cases, the business
tends to either face the threat of loss of
customers or of being unprofitable.
. Substitution: People often get bored
using a particular brand of product and
tend to opt for a change.The market usu-
ally has a number of similar products of
similar quality. So the major threat is that
people might try a product other than
yours, and eventually end up substituting
your product with it.
You can use two methods to grade these
strengths, weaknesses, opportunities or
threats, namely, pictorial and numerical.
If you opt for the pictorial way, you need
to first create four sectors on a writing
pad, putting the titles Strengths, Weak-
nesses, Opportunities and Threats in each
sector, and a large question mark in the
center. Now place each of the SWOTs in
each sector, with the most problematic
factors being farthest away from the ques-
tion mark, and the better factors closer
to it. The closer the display is bunched
towards the center of the grid, the better
the shape of your business.
However, if you pick the numerical meth-
od of assessment, you need to rate each
item from 1 to 5 according to how im-
portant each is to your business. In this
rating, 5 is considered to be the most
important. Besides, each factor should
also be rated from A to E according to its
impact on the business, where E would
indicate the highest impact. Then, check
how many Es and 5s you end up with. If
there are bad factors then you need to
change or work on them. And, if there are
strengths and opportunities, then it is im-
portant to build upon those factors. This
would help to boost your business.
IBM, Academics Seek to
Create a Computer That’s
More Like Us
By Erika Morphy
Computers can calculate at speeds and
scales that far outstrip what an ordinary
person can manage, but they still aren’t
anywhere near as complex as a human
brain. IBM and five major universities plan
to change that through a DARPA-funded
December 2008 | industrialoption.com
initiative designed to build a computer
that can mimic the way the mind works.
IBM (NYSE: IBM) and five universities
are receiving funding from a government
agency to build a supercomputer -- but
not just any supercomputer. They’ve been
tasked with building hardware and soft-
ware that mimics the human brain.
“There are no computers today that can
even remotely approach the robust and
versatile functionality of the brain,” said
Dharmendra Modha, manager of cogni-
tive computing at IBM Research.
“The mind is a collection of mental proc-
esses dealing with sensation, perception,
action, cognition, emotion and interac-
tion,” he told TechNewsWorld. “It can
integrate senses such as sight, hearing,
touch, taste and smell. And it can act in
a context-dependent way in real-world
complex environments in the presence of
ambiguity, while requiring very low power
consumption and being very compact.”
Cognitive computing, explained Modha, is
the quest to engineer mind-like intelligent
business machines by reverse engineering
the computational function of the brain
and packaging it in a small, low-power
chip.
DARPA Funding: IBM and top research-
ers from Stanford University, University
of Wisconsin-Madison, Cornell Univer-
sity, Columbia University Medical Center
and University of California-Merced have
received US$4.9 million in funding from
the Defense Advanced Research Projects
Agency for the first phase of DARPA’s
Systems of Neuromorphic Adaptive Plas-
tic Scalable Electronics, or SyNAPSE, ini-
tiative.
The research will build on the IBM cogni-
tive computing team’s recent work with
the BlueGene supercomputer: the near-
real-time simulation of a brain the size of
a small mammal, using cognitive comput-
ing algorithms to develop mathematical
hypotheses of brain function and struc-
ture.
Besides Modha, other members of the
team include Stanford University’s Kwa-
bena Boahen, H. Phillip Wong and Brian
Wandell; University of Wisconsin-Madi-
son’s Gulio Tononi; Rajit Manohar of
Cornell; Columbia’s Stefano Fusi; and
Christopher Kello of the University of
California-Merced. IBM researchers in-
clude Stuart Parkin, Chung Lam, Bulent
Kurdi, J. Campbell Scott, Paul Maglio, Si-
mone Raoux, Rajagopal Ananthanaray-
anan, Raghav Singh, and Bipin Rajendran.
Artificial Intelligence vs. Cognitive
Computing: The goal of cognitive com-
puting is to engineer holistic intelligent
machines that can connect huge amounts
of sensory data.
“The underlying issue driving this is that
as computers become used for increas-
ingly complex and large problems, you run
into some serious challenges with how to
approach those problems in traditional
linear computational fashion,” Charles
King, principal with Pund-IT , told Tech-
NewsWorld.
“Artificial intelligence starts with a prob-
lem -- not a question -- and then seeks to
develop an algorithm to solve that prob-
lem. Cognitive computing approaches it
backwards; the idea is to create a mecha-
nism that is capable of acting like a brain
for assembling pieces of complex puzzles
and then speed decision making.”
Real world applications might include a
computer that can assemble and digest
the massive volumes of information from
the global financial system -- and then
make decisions based on that input, King
said. “It is virtually impossible for a human
to make that kind of calculation.”
Another possibility might be an applica-
tion that can identify areas of the world
that will be affected by climate change to a
much higher degree of accuracy, suggest-
ed King. Sensors can now be deployed by
the millions to measure changes in ocean
levels -- but there is no way to effectively
monitor and then analyze all of that data.
On the consumer level, Modha said, it
is conceivable that a small device -- an
“iBrain,” let’s call it -- could be developed
to alert the user when something unto-
ward happens, based on the sensory in-
formation it receives. For instance, a port-
able device could monitor an unoccupied
home and alert the homeowner when a
system or situation requires attention.
Page - 22
Industrial Option
News & Views
Pakistan to add $1bn in
reserves during December:
official
ISLAMABAD: Pakistan would be able
to avail $ 1 billion from other than the
IMF donors including $ 500 million from
World Bank and $ 450 million from Asian
Development Bank, Aaj TV reported.
Finance Ministry would be able to add
$ 1 billion in our reserves in addition to
the IMF’s $ 3.1 billion to be reaching here
within next 24 hours, as transaction takes
almost 48 hours to complete after Fund
Board approval, says a Finance Ministry
official on condition of anonymity.
Zardari, Khalifa discuss
strategic, trade partner-
ship
ABU DHAB: President Asif Ali Zardari
and President Sheikh Khalifa bin Zayed al
Nahyan of the United Arab Emirates on
Monday expressed their resolve to up-
grade and further strengthen their exist-
ing bilateral ties, particularly in trade and
economic fields for the mutual benefit of
two brotherly countries.
President Zardari who arrived here in the
UAE capital on a two-day official visit on
Monday, held wide-ranging talks with the
UAE President, with focus on establishing
a comprehensive strategic and economic
partnership between the two countries.
The two leaders held in-depth discussion
that covered bilateral ties and the regional
and international issues of mutual inter-
est. They expressed satisfaction over the
existing co-operation between Pakistan
and the UAE in various fields and pledged
to further strengthen their mutual ties
particularly in trade and investment.
During the one-on-one and bilateral talks,
December 2008 | industrialoption.com
the two sides agreed on the need to ex-
pand, strengthen and take their bilateral
cooperation in diverse fields to the level
which commensurate their warm, deep-
rooted and historic ties that dates back
to the formation of UAE in 1971.
During the talks, President Zardari was
assisted by Foreign Minister Shah Mah-
mood Qureshi, Advisor on Finance Shau-
kat Tareen, Advisor on Interior Rehman
Malik, the BOI Chairman and Ambassador
at large Javed Malik.
The UAE President was assisted by mem-
bers of his cabinet. In the delegation level
talks, there was unanimity of views on
various bilateral matters with focus on
encouraging the UAE public and private
investment in joint ventures in the fields
of energy, agriculture, construction and
infrastructure development.
President Zardari and the UAE President
also discussed the peace and security
situation in the region and stressed the
need of joint efforts to improve the se-
curity situation, which is imperative for
peace and development in the region as
well as in the world.
President Zardari said there was a need
of increased co-ordination among the in-
ternational community for peace and se-
curity in the world.With the world having
turned into a global village and impacted
by the incidents in Afghanistan and Iraq,
no one can remain indifferent from such
a situation, he added. The UAE President
showed his keen interest in the peace and
security of the region, particularly in Paki-
stan and Afghanistan.
President Zardari mentioned the recent
meeting of the Friends of Pakistan Forum
in Dubai and appreciated the efforts and
role of UAE in supporting Pakistan at the
Forum, for the provision of financial as-
sistance to the South Asian nation, which
was facing the economic crisis.
The two leaders recalled the historic,
brotherly and warm relations between
Pakistan and UAE at the people to people
and leadership level, which were found-
ed by Shaheed Zulfiqar Ali Bhutto and
late Sheikh Zayed bin Sultan Al Nahyan
and were nurtured during the tenures
twice elected Prime Minister of Pakistan
Shaheed Mohtarma Benazir Bhutto.
They expressed the confidence that now
with Asif Ali Zardari becoming the Presi-
dent of Pakistan these warm relations will
further strengthen. The two Presidents
recalled the farewell meeting between
Shaheed Benazir Bhutto and Sheikh Kha-
lifa, when she left the UAE for Pakistan
to launch a campaign for her party and
participate in the general elections.
They also mentioned the joint photo-
graphs of the leaders of two families in-
cluding Shaheed Zulfiqar Ali Bhutto and
Shaheed Benazir Bhutto with the UAE
leadership, which will continue to revive
the past memories. President Sheikh
Khalifa bin Zayed Al Nahyan also hosted
a lunch in honour of Pakistan leader and
his delegation.
Later in the evening the UAE President
paid a courtesy call on President Zard-
ari along with his cabinet members at
the Emirates Palace. The two leaders
remained together for quite some time,
exchanged pleasantries and discussed
matters of bilateral interest. Member of
Pakistan delegation were also present in
the meeting.
Terming President Zardari’s visit very suc-
cessful, Advisor on Interior Rehman Ma-
lik said that the reception and hospitality
exhibited by the UAE side as well as the
UAE President’s rare gesture of receiving
Pakistani leader at the airport and pay-
ing a courtesy call after the official talks
shows the close and warm relationship
between the two leaders.
During the course of discussion including
on Pakistan’s growing energy needs, he
said, President Zardari desired for early
transportation of the 400 megawatt pow-
er plant to Pakistan, which the UAE had
already offered. Earlier, on his arrival at
Al-Mushef Palace, President Zardari was
accorded a warm welcome. A smartly
turned-out contingent of the UAE armed
forces presented a guard of honour to
the Pakistan leader. President Zardari in-
spected the guard of honour.
The national anthems of the two coun-
tries were also played on the occasion.
Sheikh Khalifa bin Zayed Al Nahyan intro-
duced the Pakistani leader with the UAE
Page - 23
Industrial Option
News & Views
dignitaries.While President Zardari intro-
duced the UAE President with Pakistani
delegation.
President Asif Ali Zardari was also given
a rousing red-carpet welcome when he
arrived at Amiri Airport of Abu Dhabi.
UAE President Sheikh Khalifa bin Zayed
Al Nahyan, in a rare gesture, along with
his cabinet members received the Paki-
stani leader, who was paying his first of-
ficial visit to the UAE after assuming the
office of the President.
Later President Zardari and President
Sheikh Khalifa drove to Al-Mushef Palace
for official talks in the same car, which
showed the love, affection and respect,
which the UAE leadership has for Paki-
stani leadership.
Advisor to PM on Interior Rehman ac-
companied the President, while Foreign
Minister Makhdoom Shah Mahmood
Qureshi,Advisor on Finance Shaukat Tarin,
Chairman BOI Salim Mandviwala and Am-
bassador at large Javed Malik joined him
in Abd Dhabi.
During his two-day stay in Abu Dhabi the
President will also hold meetings with the
heads and chief executives of UAE based
major companies to seek investment in
various sectors particularly in energy, ag-
riculture and infrastructure projects in
Pakistan.
IMF approves $7.6 billion
package
ISLAMABAD: International Monetary
Fund (IMF) on Monday approved $7.6
billion bailout package for Pakistan, Aaj
TV reported. Pakistan is likely to get be-
tween $3.5 billion and $4 billion initially
while the rest will be distributed in six
equal instalments. The money is likely to
be transferred to the State Bank of Paki-
stan’s account in the US Federal Reserve
in New York.
The disbursement takes 48 to 72 hours,
which means that Pakistan will have the
money by Thursday. Pakistan, after seven
December 2008 | industrialoption.com
years’ gap, has finally re-entered the Inter-
national Monetary Fund (IMF) programme
to receive $7.6 billion for replenishing its
fast depleting reserves, after its friends,
multilaterals and other donor agencies
and international financial institutions
showed reluctance to help it financially.
Shaukat Tarin, Advisor to Prime Minister
on Finance made it clear that this fund
would not be used for any non-develop-
ment expenditures and stock markets,
saying that the loan would be utilised for
maintaining the declining foreign reserves,
besides overcoming its balance of pay-
ments crisis. He said that the IMF financ-
ing facility would give confidence not only
to the markets and the investors but also
to other IFIs and friends.
Gilani assures foreign busi-
nessmen of full security
KARACHI: Prime Minister Syed Yousuf
Raza Gilani has assured foreign business-
men to provide maximum possible secu-
rity to them and their businesses in Paki-
stan. He was speaking at the inauguration
of 5th International Defence Exhibition
and Seminar (IDEAS) 2008 at Karachi
Expo Centre here Monday.
“We would like to seek the understand-
ing of our foreign friends that the main
objective of the terrorists is to harm
Pakistan by incapacitating its economy.
They seek to spread terror amongst our
foreigner friends to force them to leave
or avoid Pakistan and thus cause capital
flight, and declining foreign investment in
our country,” he added.
Sindh Governor Dr Ishrat-ul-Ebad Khan,
Chief Minister Syed Qaim Ali Shah, Chief
of the Army Staff General Ashfaq Pervez
Kayani, State Minister for Defence Abdul
Qayoom Khan Jatoi and Director Gener-
al, Defence Export Promotion Organisa-
tion (DEPO) Major General Muhammad
Farooq were also present on the occa-
sion.
The Prime Minister said because of Paki-
stan’s pivotal role in the campaign against
terrorism and extremism, there had been
negative stereotyping of Pakistan in the
international media, by spreading gossip
and despondency and gloom.
This negative stereotyping against Paki-
stan, nonetheless betrays a fundamental
disconnect between the perception and
reality, he observed. Prime Minister Gilani,
however, noted that these images couldn’t
dampen Pakistan’s will and resolve to be
true and honourable to ourselves and the
world.
Pakistan has continued to sacrifice on ac-
count of its undeterred determination to
fight the evil forces of extremism and ter-
rorism for peace, security and economic
well-being of its own people as well as the
people of the rest of the world.
Yousuf Raza Gilani expressed pleasure
over the large participation by foreign
firms and dignitaries in IDEAS 2008 and
said it was a proof that in spite of Paki-
stan’s campaign against terror, the busi-
ness and economic activities in the coun-
try remain unaffected and the enemies of
peace in Pakistan and the world at large
will not be able to succeed in their nefari-
ous designs.
The Prime Minister reiterated that to
counter the present difficulties that Pa-
kistan was facing as a direct consequence
of its campaign against terrorism and as a
result of world economic crisis, we would
like to increase foreign investment in the
country to generate higher level of em-
ployment and diversify our exports by
gaining enhanced market access in the
friendly countries.
He said Pakistan’s defence industry is to
play an important role in our export di-
versification campaign. Pakistan can now
meet most of the defence equipment
needs of our friendly countries in Asia,
Middle East, Africa and South America.
Prime Minister Gilani said he would like
to urge the participants to visit the coun-
try’s defence production facilities and
interact with our manufacturers with a
view to exploring development of mutu-
ally beneficial defence co-operation links
between our countries.
Page - 24
Industrial Option
Article
Micro-financing: an innovative ap-
plication of social networking.
Selected & Edited by Mr. Imran Aziz, CEO RAD Federation
In its short history, micro-financing has be-
come known as a proven tool for enabling
the poor to gain a small measure of eco-
nomic traction.
Less known is the fact that the institu-
tions providing micro-financing, such as
those described in this article, can im-
prove their own performance as well.
These authors have written an excellent
informal case study that highlights the
very significant benefits that flow to both
borrowers and lenders in a micro-financ-
ing relationship.
In September 2000, the United Nations
unanimously adopted the Millennium De-
velopment Goals to alleviate poverty and
its derivatives, such as the need to achieve
universal primary education, promote
gender equality and empower women,
combat deadly diseases, reduce child
mortality and improve maternal health,
and ensure environmental sustainability.
Microfinance (1) institutions (MFIs), for
example, banks, non-government organi-
zations (NGO), and government agen-
cies, are one such vehicle used to achieve
these goals. By far, microfinance has been
able to provide financial and non-finan-
cial services to the “unbankable” (poor
or marginalized) to not only establish fi-
nancial independence, but also reap the
benefits of added income and work secu-
rity, food security, and social security (at
least health care, child care and shelter).
According to Nobel Prize Winner, Profes-
sor Muhammad Yunus, microfinance is a
“social business” that “creates economic
and social development from below.”
However, one of the legitimate questions
asked at the most recent United Nations
Global Compact and Academy of Man-
agement Conference at Case Western
University (2006) was that if, presum-
ably, microfinance has reached a tipping
point, what else can microfinance institu-
tions do to help the impoverished while
enhancing their own performance? What
December 2008 | industrialoption.com
mechanisms and structures are currently
being used and can be improved upon to
accrue additive benefits and accomplish
a sustainable growth model for both the
borrowers and microfinance institutions?
This article attempts to answer these
questions by referring to the best struc-
tural practices adopted by two pioneering
microfinance institutions--Grameen Bank
of Bangladesh and Self-Employed Women
Association (SEWA) of India--that have
helped them manage and implement their
changing roles, activities, portfolios, and
responsibilities over the years.These insti-
tutions have been transformed from pro-
viders of micro-credit to the impoverished
Professor Yunus made the Grameen Bank
famous for micro--credit--giving small loans
to people so that they can invest in produc-
tive assets to improve their socio-economic
status.
to developers of business-social ventures
and providers of support programs and
non-financial services. Using the social
network (2) theory, we propose an insti-
tutional network model based on existing
structural models used by Grameen Bank
and SEWA. This innovative model will de-
velop optimal social channel capacity that
may allow both clients (borrowers) and
microfinance institutions to effectively
manage relationships while systematically
disseminating and assimilating essential
knowledge and information and hence,
reap maximum benefits. Furthermore, the
model can be imitated by other develop-
ing organizations as it may assist them to
understand how institutional boundaries
can be extended to experience growth
and increased performance. Figure 1 illus-
trates the proposed institutional network
framework.
Microfinance institutions: Role
Models
Grameen Bank
Professor Yunus made the Grameen Bank
famous for micro--credit--giving small
loans to people so that they can invest in
productive assets to improve their socio-
economic status. Since Muhammad Yunus
founded the Grameen Bank in 1976, it has
provided micro-loans worth more than
$4 billion to three million of the poor-
est rural village residents in Bangladesh.
Grameen’s borrowers, 95 percent of
whom are women and mostly illiterate,
have helped make the bank profitable by
maintaining a 98 percent loan repayment
rate.The Grameen Bank has become a to-
tally self-financing operation that stopped
accepting donor contributions six years
ago. Expanding beyond micro credit,
Grameen Bank has explored an emerging
trend for eradicating poverty by develop-
ing business-social ventures. For example,
Grameen’s first business-social venture
evolved as Grameen’s Fisheries and Live-
stock Foundation, a joint venture with
local farmers, whereby the latter used
their farming expertise to fertilize the
fishponds. Grameen, in turn, gives farmers
the technology and training they need to
practice sustainable fish farming and live-
stock husbandry. As a result of the equal
partnership, 4,000 farmers created small
enterprises not only in fishing but also in
dairy farming, production of biogas from
animal manure, forestry, and agriculture.
More recently, Grameen Bank made the
leap from rural banking and agricultural
enterprises into high technology with the
‘GrameenPhone’ venture. It has grown
to be the largest cellular phone company
in all countries in south Asia, with more
than one million subscribers in Bangla-
Page - 25
Industrial Option
desh, and has earned after-tax profits of
about US$50 million in 2002. The “phone
ladies” that resell airtime bought in bulk
by GrameenTelecom, earn an average an-
nual income of US$800, an amount that
is twice Bangladesh’s per capita annual
income.
The progression and succession from
December 2008 | industrialoption.com
1972. It is an organization of poor, self-
employed women workers (unprotected
and unorganized labor force) who earn
a living through their own labor or small
businesses. SEWA recognizes the need
for supportive services like savings and
credit, health care, childcare, insurance,
springboards for several trades associa-
tions:
(1) hawkers, vendors and small business
women,
(2) home-based workers like weavers,
potters, bidi (cigarette) and agarbatti (in-
cense) etc.,

a microfinance bank, from providing (3) manual laborers & service providers
in agriculture, construction, etc. and
micro-credit to the poor to a social (4) producers who invest their labor and
enterprise, is largely attributable to capital to carry out their businesses, for
example, agriculture, cattle-breeders, salt
the women stakeholders. workers, cooking, etc.

SEWA is governed a by two-tier level of

The progression and succession from a
microfinance bank, from providing mi-
cro-credit to the poor to a social enter-
prise, is largely attributable to the women
stakeholders, who are also Grameen bank
borrowers.The Grameen bank model has
helped develop social relationships within
and across groups of women borrowers
and the bank, hence allowing stakehold-
legal aid, capacity building, and communi-
cation services. It has helped women take
a number of initiatives in organizing these
services for themselves and their SEWA
sisters. They provide these services in a
decentralized and affordable manner, at
the doorsteps of workers. Further, sup-
portive services can be and are them-
selves a source of self-employment. For
elected representation. The members of
each trade elect their representatives
based on the ratio of 1 representative
per 100 members. These representatives
then form the Trade Council. In addition,
and parallel to the Trade Council, are
Trade Committees in each trade. Trade
Committees and Trade Council work
very closely together to get feedback

In our opinion, the success and sustainability of SEWA and Grameen

Bank are largely attributable to the team-based methodologies
they adopt. Expanding on the concepts of sub-sectors and the
feedback mechanism while integrating the theoretical knowledge
of social networks, we have developed an institutional network
model to depict the symbiotic relationship between clients and
microfinance. Our proposed model can be replicated and may be
instituted not only by microfinance institutions but also by other
developmental agencies.
ers to reap the benefits of social capital example, midwives charge for their serv- from each other. Every three years the
and social power. Women in the villages ices and home workers collect fees for Trade Council elects an Executive Com-
hold regular meeting to discuss their taking care of young children. Also, wom- mittee of 25 members. The representa-
progress, concerns, and issues, as well as en are ready to pay for the services, which tion on the Executive Committee reflects
to make payments to the Grameen bank in turn results in the financial viability of the proportion of the membership. The
representative. The latter, in turn, feeds the support services. They do not have office-bearers of the Trade Union are
collected data and information to the to be totally dependent on subsidies and elected from among the executive mem-
central office. Moreover, the Grameen grants. Some support services like sav- bers. It has become a practice to elect the
Bank’s borrowers--poor women--own ings and credit, health and childcare have president from the trade with the largest
the bank. They control 92 per cent of formed their own co-operatives that have membership.
its shares (the balance is owned by the gained operational self-sufficiency. SEWA
government) and 9 of the 13 members of bank has achieved social entrepreneur- The institutional network
the bank’s board of directors are elected ship through financial viability for many The institutional network consists of two
from among these bank borrowers, allow- years now, while the other cooperatives networks, focal and principal networks.
ing them to participate in its governance are steadily moving towards this. For each we identify the actors (clients/
and strategic development. SEWA has identified four types of self- borrowers); network goals and objec-
SEWA is a trade union registered in employed women workers which can be tives; and their characteristics. They are
Page - 26
Industrial Option
all said to commonly enjoy informational
advantages.
Focal network
Formal sub sectors are analogous to focal
networks and may consist of clusters of
20-30 actors in the same or related busi-
nesses, such as garment, poultry, dairy,
etc., similar to the ‘trade committees’ in
SEWA’s organization structure. To main-
tain stability and solidity within the focal
Critical problems that may surface
among clients in these networks are
their social and business likes, dislikes
and preferences.
network, to orchestrate decisions for the
network, and to be represented in lo-
cal communities, an administrative “hub”
in each of the focal networks should be
established; a very limited role-played by
the member secretary in SEWA’s model.
Network orchestration is likely to be the
key role performed by the “hub” and is
defined “as a set of deliberate, purpose-
ful actions undertaken to create value
(expand the pie) and extract value (gain
a larger scale of the pie) from within and
outside the institutional network. “This
hub should consist of two or three ac-
tors from the focal network, who may be
elected.
Critical problems that may surface among
clients in these networks are their social
and business likes, dislikes and prefer-
ences. This may create a biased envi-
ronment, which may hinder the success
and progress of the network. Negative
conflict may be one of the precursors
to negative relationships but if positive
conflict arises in a network, it is generally
considered beneficial. Nonetheless, other
factors, such as personality traits, percep-
tion of inequity, selective perception, halo
effect, lack of group association, etc. may
also trigger negative relationships.
Network goals and objectives.
The focal networks are likely to perform
both proactive and reactive advisory
roles. The proactive approach allows the
December 2008 | industrialoption.com
actors within the focal networks to share
amongst themselves task-related issues
and collectively make decisions to over-
come specific, practical obstacles such
as acquiring retail licenses, establishing
transport system, enhancing buyer pow-
er by combining orders and -economiz-
ing value chain activities. Moreover, their
advisory capacity may be extended to
formulating and implementing strategies
necessary for business growth. The focal
networks can also take a proactive ap-
proach to eliminate bottlenecks and re-
duce uncertainties, as it will be beneficial
for the entire network, not simply one or
two actors in the network.These accrued
benefits may be operational and strate-
gic in nature. For example, it will be con-
sidered operational in a transportation
focal group, when the hub negotiates a
deal with different wholesalers to deliver
products to several different destinations
at the same time. The communal impact
of this decision will help the network at-
tain economies of scale, employment for
all, and increased profitability. Logistically,
actors can share routes and deliveries to
reduce expenses. Decisions are of a stra-
tegic nature, if a garment or apparel fo-
cal network launches a line of designer
clothing by forming alliances with fabric,
tie and dye, and/or embroidery suppliers
and if need be vertically integrate into
these businesses.
On the other hand, the network’s reac-
tive approach helps resolve everyday
glitches and hindrances that individual ac-
tors may face. Micro-level businesses sur-
vive on day-to-day transactions and loss
of a day’s work can considerably reduce
their profitability. The administrative hub
and the lateral linkages created within
the networks may reduce these anoma-
lies by providing immediate assistance
and advice, normalizing everyday work. In
general, it is essential for actors to clearly
understand the advisory roles each one
plays within their respective focal net-
work. For example, in their monthly or
biweekly meetings, they should all proac-
tively discuss prioritized agendas. They
are likely to benefit most by collectively
addressing the issues or concerns on the
agenda and finding remedial solutions be-
sides learning private lessons and using it
in their favor. The administrative hubs, on
the other hand, are likely to facilitate and
monitor discussions, schedule time lines,
and equally distribute implementation
responsibilities, if it is for the common
good of the entire network. The hubs can
also act as payment collectors for micro-
finance institutions. After a period of time
these networks will be transformed into
friendship networks (4), in which women
in the network may provide informal ad-
vice, social support, and mentoring serv-
ices.
Network characteristics.
Two types of linkages exist within the fo-
cal network--formal central linkages be-
tween the administrative hub and actors,
and informal lateral relationships among
actors. It can be fairly stated that focal
networks can accomplish their goals and
objectives through central ties that are
highly cohesive, strong, and dense. The
characteristics of informal lateral linkages
may be different in urban and rural set-
tings. Due to geographic dispersion in an
urban setting, the horizontal linkages may
initially be sparse and weak but may be-
come dense and cohesively strong over-
time. On the other hand, lateral linkages
are likely to be strong to begin with in
rural setting due to geographic proximity.
As actors in individual focal networks are
in the same or related businesses, they re-
quire access to the same or similar pool
of resources and knowledge; therefore,
the possession of redundant, fine-grained
information may be prolific. This informa-
tional gain can help reduce environmental
uncertainty, prescribe solutions to exist-
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Industrial Option
ing and potential problems, and augment
business growth Simply put, cohesion, den-
sity, and strength of relationship between
administrative hub and actors within the
focal network are likely to encourage ef-
fective communication, cooperation, and
the sharing and exchange of information.
Prolonged positive impact comes from
the development of trust and, and in turn,
social capital. Network intensity develops
over time but the benefits may be reaped
for years to come. However, there may
be drawbacks associated with cohesive
and dense networks.These include rivalry
and negative conflict within the network,
which may have severe repercussions for
business development and harmony.
Principal Network
Paralleling the board of directors of the
Grameen Bank and the executive council
of SEWA, the advisory principal network
should be comprised of the administra-
tive hubs of the individual focal networks
and the respective microfinance institu-
tion, which may be considered the hub
of the principal network. Hub may be
considered as the key actor, the triggering
entity, and/or the strategic center, and is
likely to possess prominence and power,
gained through individual attributes, and
from the knowledge and information
achieved through their presence in their
respective external networks and their
affiliations with other world organiza-
tions. This would allow them to earn a
central, advisory position in the principal
network structure and subsequently, per-
form a leadership and governance role in
pulling together dispersed resources and
capabilities of network members i.e. focal
networks. Formal institutionalization is
decisive for its success.
Network’s goals and objectives
It is fundamental that the representative
of the focal networks and their respec-
tive microfinance institution meet peri-
odically, at least once every quarter, for
the former to submit and share progress
report, goals and achievements, current
endeavors and work in progress, and
future aspirations. More specifically, indi-
vidual focal networks can share informa-
tion about the obstacles and hindrances
their businesses experience, the solu-
tions and interventions to the problems,
the results achieved pertinent to their
respective industries, and their growth
strategies and tangents. This may be for
December 2008 | industrialoption.com
the common and private good of all fo-
cal networks in diverse industries and for
microfinance institutions, which, because
of the broad information base attained
from the diverse sources, will remain well
informed of opportunities and impending
disasters (access benefits) and hence de-
termine their own future direction. It will
also encourage microfinance institutions
to act as connectors to build coopera-
tive relationships among different focal
networks. For example, if microfinance
institutions ascertain that a new opportu-
nity is created in one of the focal groups,
which may be catered to by the skills of
another focal group, they can connect
them appropriately (timing and referral).
Furthermore, eruption of lateral linkages
among independent focal networks can
give them the opportunity to share com-
plementary skills, allowing for economies
of specialization. This reduces duplication
of time and effort, costs, and relational
risks that focal networks may otherwise
independently experience.
Even though focal networks may be con-
sidered the backbone of the institutional
network, the principal network is the in-
terface of the institutional network. The
role of the principal network, in general,
is to enhance reputation, lengthen the
shadow of the future, and build multiplex-
ity within the institutional network. Thus,
representatives from the principal net-
work should seek legitimacy and recogni-
tion within the country and microfinance
community at large by attending and par-
ticipating in conferences, developing and
promulgating programs and initiatives,
and maintaining transparency at the net-
work level. They should also build robust
strategic alliances with other similar insti-
tutions and government agencies.
Network characteristic
As in focal networks, principal networks
are also likely to consist of formal cen-
tral linkages between microfinance insti-
tutions and focal networks, and informal
lateral linkages among focal networks.
The former may be characterized as
strongly connected, dense networks with
structural holes, as this would allow most
appropriate implementation of network
goals and objectives. The latter are likely
to be sparse with weak connections. For
example, due to the prevalence of indus-
trial diversity in this network, the actors
are mostly disconnected, dispersed, and
share only weak ties but are held together
by microfinance institution as the prime
connector. The structural holes that ex-
ist in the principal networks permit the
microfinance institution to collect non-
redundant, critical information of plausi-
ble bottlenecks and interventions used by
different focal networks, and to dissemi-
nate the gathered information to others
within the principal network, reducing du-
plication of resources and learning curve
effects. A caveat here is that as focal net-
works belong to different industries, the
learning implications of one industry may
not be carried over to another in totality.
Nevertheless, with amendments, private
synergies can be attained.
We hope that this article will offer new
insights for future policy makers. First,
the social institutional network proposed
confirms that development should be
grounded in the social, cultural, and eco-
nomic needs and priorities of the society.
This highlights the importance of the bot-
tom up approach and in turn, ensures that
microfinance institutions have a stake in
the future of their business commu-
nity. Both the Grameen Foundation and
SEWA acknowledge and appreciate that
the best development ideas come from
the clients themselves. Second, the non-fi-
nancial services and support packages of-
fered by microfinance institutions would
create a skilled working class and improve
the quality of labor and their access to
productive resources. Third, the methods
and technical services employed should
be simple so as to reduce the demand for
highly skilled labor and management for
the project to attain self-sustainability. Fi-
nally, the feedback mechanism developed
could be used to educate future clients
to operate and function more efficiently,
subsequently allowing the next batch of
clients do better and follow economies
of scale. The focal and principal networks
can eventually build up business alliances
where the buying and selling power of
borrowers gives them social power as
well. In short, this symbiotic relationship
not only improves the socio-economic
status of the poor but also augments the
performance of microfinance institutions
for them to attain sustainability.
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Industrial Option December 2008 | industrialoption.com

Debate
On Financial & Economic Crisis
Sponsored by Sheikhupura Chamber of Commerce & Industry (SCCI)

Questions &
Pointers
“The ‘financial crisis’ is not confined only to the have left many countries fiscally vulner-
able
United States. As economic turmoil spreads to glo-
bal markets, world leaders are reacting to the U.S. Question: How Poor and middle-in-
come countries are helped to limit
“bailout plan”. Stock markets around the world the damage and prepare for recov-
have plummeted and fears of a global recession are ery.
Pointer 1: Drawing on international as-
increasing. sistance where necessary
Question: Do you think that the fi- a projected 6.4% Pointer: 2 Investing in infrastructure and
nancial crisis is spreading rapidly to Pointer 2: Private capital flows are ex- safety nets
the previously resilient developing pected to drop from $1 trillion in 2007 Pointer 3: Continuing to improve their
world? to $530 billion in 2009 business climate and attract investors
Pointer 1: Global trade is forecast to Pointer 3: Remittances that workers send
shrink in 2009 for the first time since to home countries are projected to de- Question: Do the Global problems
1982 cline call for multilateral solutions?
Pointer 2: Foreign investment and short-
term credit are drying up Question: What is the reason that Pointer 1: Leaders need to craft policies
Pointer 3: Developing country exports Before the financial crisis hit, many that bring more countries into the eco-
are falling; large amounts of capital have countries were already suffering a nomic mainstream
been withdrawn food and fuel crisis? Pointer 2: Opportunities and responsibili-
Pointer 1:100 million people have fallen ties for the new global economy must be
Question: Why Many developing into extreme poverty, according to Bank shared
countries face sharply tighter credit estimates Pointer 3: The international community
and higher interest rates? Pointer 2: Another 44 million children are needs to look beyond financial rescue to
Pointer 1: GDP growth in developing malnourished the human side of the crisis
countries is expected to fall to 4.5% from Pointer 3: Measures to offset rising prices
SEND COMMENTS TO: EMAIL & BLOG:
Sheikhupura Chamber of Commerce & Industry Blog: http://blog.scci.net.pk
23-KM, Lahore Sheikhupura Road, Qila Satar Shah, Sheikhupura Email: debate@scci.net.pk
Phone: 042-7971367 Fax: 042-7970667 Website: http://www.scci.net.pk
Page - 29
 I am happy to
be sacrificed!
Now more than ever in Sheikhupura district, our neigh-
bors, co-workers and friends are living on the edge –
some for the first time in their lives. Trapped between
layoffs, foreclosures and skyrocketing costs for basic
needs, families are struggling. This is the time for the
Sheikhupura Industrialists & Business Community to
come together.
Donate Generously to People
arround you! Help them to
recover from poverty.
Do not miss the opportunity on the festival of Eid -ul-Adha

A public service advertisement by Sheikhupura

Chamber of Commerce & Industry
Page - 30
Industrial Option December 2008 | industrialoption.com

RESOLUTION Sheikhupura Chamber of Commerce & Industry

of signature of Mian Mohammad Yousaf Ex-President SCCI as
the signatory to the Chambers account No.1464 Bank of Pun-
jab Kot Abdul Malik Branch, Sheikhupura.

It is further resolved that Mr. Naveed Anwer Sheikh of Crescent

Art Fabrics, a corporate member of the chamber shall be the
new Signatory to operate the above said account.The specimen
signature of Mr. Naveed Anwer Sheikh, dully attested by the ex-
isting signatories is attached with this resolution.

It is further resolved that signature of any two signatories shall

be sufficient for withdrawal of money from the said account.

1. Manzoor-ul-Haq Malik

2. Mohammad Tariq Iqbal Mughal

It is resolved by the meeting of the Executive Committee of
“The Sheikhupura Chamber of Commerce & Industry” that a
member of the Executive Committee shall be replaced in place

Affidavit
We, The promoters and signatories of Memorandum & Articles of Association of The Sheikhupura Chamber of Commerce &
Industry 6 out of total 8 members , a body corporate registered u/s 42 of the Companies Ordinance 1984, do hereby solemnly
declare & affirm;

1. That the Chamber has submitted form 27 and 29 dated 14-04-2008 has properly been tendered after the election has
held.
2. That new appointments of Secretary, Auditor, Legal Advisor, Corporate Advisor and Chief Accountant were made after
the cessation of the old appointment.
3. That all the matters of the Sheikhupura Chamber are running smoothly and we are satisfied with its working.
4. That in one year’s time, the membership has arisen to 182 members in associate class and 66 in corporate class. The
membership is open and business community in approaching for new memberships.(List of Members attached)
5. That the AGM held is December 2007 has approved 23 KM Lahore Sheikhupura Road Qila Satar Shah as its registered
office. Office at Kot Abdul Malik was temporarily kept for receiving post etc was closed. Now there is only one office of
the Chamber at the above address having telephone # 7971967 Fax # 7970667, Web Site: www.scci.net.pk, Email as
Info@scci.net.pk. Bank a/c # 1464 Bank of Punjab Kot Abdul Malik Branch. SECP has been informed through form 21
which is a legal tender. There is no ambiguity in it.
6. That the Chamber has again held the election for the year 2008-09, the result of which in shape of office bearers and
E.C. members is also attached.
7. That all the paragraphs above are correct to the best of our knowledge & belief. Nothing is incorrect and nothing has
been concealed.

Deponents
1. Malik Manzoor-ul-Haq 4. Mian Farooq Ahmad
CNIC# 3520278739393 CNIC# 3520295174463
23-KM, Lahore – Sheikhupura Road, Sheikhupura, Sheikhupura 12-KM, G.T, Road, Sheikhupura

2. Mr. Naveed Anwer, 5. Mr. Muhammad Tariq Mughal ,

CNIC# 3520225028193 CNIC# 3520190570401
23-KM, Lahore – Sheikhupura Road, Sheikhupura, Sheikhupura 17-KM, Lahore – Sheikhupura Road, Lahore.

3. Mr. Shahzad Ali Nagina 6. Mr.Yousaf Malik,

CNIC# 3520281285535 CNIC# 3520253688683
21-KM, Lahore – Sheikhupura Road, Sheikhupura, Sheikhupura 23-KM, Lahore – Sheikhupura Road, Sheikhupura, Sheikhupura

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Industrial Option December 2008 | industrialoption.com

Standing Committees of the Sheikhu-

pura Chamber of Commerce & Industry
for the period of 2008-09
No. Name Standing Committee Company Name

1 Mohammad Tariq Iqbal Mughal Achievement Award Mughal Steel Mill Pvt Ltd
2 Ch Mohammad Arif Agri and Pesticide Ch Stone Crushing
3 Amjad Nazir Butt Agro & Food Process Al Madina Trading Co Skp
4 Mehmood Sami Petroleum Sami Sons
5 Ch. Nadeem Safdar Soap and Detergents Model Soap Factory
6 Rab Nawaz Dyes and Chemicals Ahmad Jannat Enteprises
7 Sabir Pervaiz Miller Industry Seena Grinding
8 A.R.Khan Customs & Import Super Thermax
9 Shahid Saeed Pasha Chemical Processing Premier Chemical
10 Haji Maqsood Gems & Jewelry Maqsood Jewelers
11 Malik Manzoor Industrial Services Industrial Option
12 Sheikh Naveed Anwar Stainless Steel Industry AHN Steel
13 Muzaffar Ahmad Board Industry Malik Board & Paper Mill
14 Haseeb Haroon Collides AHN Collides
15 Mohammad Saleem Butt Pharmaceutical Ameer Pharama
16 Amir Bakhat Azam Cable Industry New Age Cables
17 Tariq Iqbal Mughal Trade Delegation Mughal Steel Mill Pvt Ltd
18 Mian Farooq Ahmad Pipe Industry Jamal Pipe Industry
19 Ms Qaisra Zulfiqar Women Entrepreneur Al Aziz Paper Mill
20 Mian Muhammad Sanaullah WAPDA Dispute Resolution National Pipe
21 M. Waseem Asharaf Rice Export Waseem Traders
22 Sheikh Abdul Hafeez District Government S. Abdul Ghafoor & Sons
23 Imtiaz Asharaf Aulakh Social Welfare Aulakh Commission Shop
24 Syed Abid Shah Education Philanthropist
25 Ali Abbas Chemical Yarn RN Rayon
26 Mohammad Rashid Open end Industry Model Spinning
27 Lala Abdul Waheed Health Usman Traders
28 Khalid Zaman Toor Rice Research Crystal International
29 Malik Mohammad Yusaf Sales Tax InterPack
30 Shehzad Ali Nagina R & D / NGOs Mandiali Paper Mill
31 Abid Mehmood Butt Building H.M. builders
32 Amir Bakhat Azam Environment New Age Cables
33 Ch Mohammad Arif Law & Order Ch Stone Crushing
34 Amjad Nazir Butt Chamber News Al Madina Trading Co
35 Suhail Iqbal Mian Membership Growth Muhammad Iqbal Hussain & Brothers
36 Manzoor Ul Haq Malik Liaison Industrial Option
37 Kamran Khan Pulp & Paper Flying Paper Mill
38 Ch. Mohammad Sadiq Business Dispute Resolving Insha Industries
39 Khalid Taj Sui Gas+ CNG Taj International
40 Mian Shahabul Khan Court Matters Qadria Board
41 Malik Mudassar Public Relation Falcon Packages
42 Khawaja Tariq Packaging( Tin Corrugation ) Ayub Packages
43 Aamir Match Industry Fazal Match Industry
44 Muhammad Younas Shoe Industry Rightway International

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Industrial Option December 2008 | industrialoption.com

Event

LCCI PIAF FOUNDER DELEGATE VISITS SCCI

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Industrial Option December 2008 | industrialoption.com

Event

LCCI PIAF FOUNDER DELEGATE VISITS SCCI

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Industrial Option December 2008 | industrialoption.com

Event

LCCI PIAF FOUNDER DELEGATE VISITS SCCI

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Industrial Option December 2008 | industrialoption.com

Felicitation

Welcome
Sheikhupura Chamber of Commerce & Industry wel-
comes all Chambers, Trade Organizations, associa-
tions on the completion of successful elections and
to those at winning end. SCCI hopes for a better busi-
ness and Industrial Cooperation as it is important to
working in cohesion for the growth and development
of Pakistan.
SCCI office-bearers felicitate Mian Muhammad Idris of Sitara
Chemicals Industries Ltd. as Chairman Standing Committee on
Industry in FPCCI

SCCI office-bearers felicitate Muhammad Ali Mian

The SCCI President Mr. Manzoor Malik and Executive Com-
mittee members have congratulated Mohammad Ali Mian for
his appointment as Chairman Punjab Industrial Estates Develop-
ment and Management Company. In a statement issued here
on Monday, the SCCI office-bearers said that it is a business
friendly decision of the government that would go a long way in
improving infrastructure at industrial estates which is dire need
of the hour.
The SCCI office-bearers also paid tributes to Chief Minister
Punjab for evolving all business-related policies in consultation
with the business community that is the real stakeholder. They
said that the Chief Ministers efforts would help make the prov-
ince a hub of business activities.

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Industrial Option December 2008 | industrialoption.com

Islamic festivals: The spirit behind

Eid -ul-Adha
by Sadaf Farooqi

The Islamic festival of Eid Al-Adha, or
“Festival of Sacrifice” follows close on the
heels of the first Eid festival of the year,
“Eid Al-Fitr”.
The Arabic word “Adha” means “sacri-
fice”, having its root in the word “duha”,
which also means “light” or “illumina-
tion”.
After Ramadan, the month of Shawwaal
ensues, in which most Muslims fast 6 days.
This month is followed by Dhul Qa’dah,
which is the month in which most of the
Muslims who intend to perform Hajj,
start their preparations for the trip, and
eventually reach Saudi Arabia. After the
On the tenth of Dhul Hijjah, pilgrims in
Mina, Saudi Arabia, sacrifice an animal for
the sake of Allah. On the same day, Mus-
lims elsewhere in the world celebrate the
festival of Eid Al-Adha, in which those who
can afford to, also sacrifice an animal to
gain Allah’s pleasure, embodying the sacri-
fice made by Prophet Abraham [peace be
upon him] when he was ordered by Allah
in his dream to sacrifice his son Ismael
[peace be upon him], to which he com-
plied. His spirit of unflinching submission
to Allah is epitomized every year as Mus-
lims indulge in a similar sacrifice.
Eid Al-Adha is celebrated in more or less
the same way as Eid Al-Fitr, except that an
a camel. The more beloved and dear the
animal is to its owner, the more meaning-
ful will be its sacrifice.
This animal should be taken care of, fed
well, respected (it should not be harmed,
or ridiculed in any manner) and nurtured
until the time of sacrifice. Alternatively, if
the Muslim can not afford a separate ram
or goat for himself (or herself), scholars
have allowed 7 Muslims to share in one
cow.
Gain knowledge of the sacrifice rit-
ual:
Muslims should be well-aware of the cor-

“Indeed I turn my face towards The One Who originated

the heavens and the earth; upon the way of Abraham, the
unswerving one, and I’m not of those who commit shirk
[polytheism]. Indeed my salah, my sacrifice, my living and
my dying is for Allah, the Sustainer of the worlds. There is
no associate with Him, and so I have been commanded, and
I am from the ones who submit. O Allah! (This sacrifice) is
from me, for You.”
month of Dhul Qa’dah, comes the month animal is sacrificed on this Eid. rect etiquette and steps of religious sac-
of “Dhul Hijjah”, which literally means, rifice, by seeking knowledge of Islam per-
“Of the Hajj”. This is the month in which Buy and rear a sacrificial animal: taining to this ritual. That is, the owners
Muslims perform Hajj, which is closely should educate themselves in the Islamic
linked to the global festival of Eid Al-Adha The Muslim who can afford to, should buy rules of slaughter, and be present to su-
celebrated by other Muslims all over the a sacrificial animal well before Eid. This pervise this ritual.The basic guidelines are
world. could be a male ram, goat, sheep, cow, or as follows:

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Industrial Option
- The sacrifice should be performed dur-
ing the day-time, not at night.
- The knife to be used to cut the animal’s
throat should be very sharp, so much so
that the least amount of force or pres-
sure is needed to slice the animal’s jugular
vein, so it feels the least amount of pain
when its skin is thus cut.
- The knife should not be shown to the
animal, but the latter should be fed well
and laid down facing the direction of the
“Qiblah” (Muslim direction of prayer -
the Ka’ba) in Makkah.
- The person who will perform the sac-
rifice should be well-versed in their job,
and should not hurt the animal by clumsily
jabbing away at the latter’s throat with a
blunt knife, causing pain and fear. The one
performing the sacrifice should be swift
and deft. He should say “Bismillah Allahu
Akbar” before slicing the animal’s throat.
The owner of the animal should recite
the following dua (invocation) before the
sacrifice (translation):
“Indeed I turn my face towards The One
Who originated the heavens and the
earth; upon the way of Abraham, the un-
swerving one, and I’m not of those who
commit shirk [polytheism]. Indeed my
salah, my sacrifice, my living and my dying
is for Allah, the Sustainer of the worlds.
There is no associate with Him, and so I
have been commanded, and I am from the
ones who submit. O Allah! (This sacrifice)
is from me, for You.”
- The animal dies due to loss of blood.The
blood should be allowed to drain com-
pletely from its body before it is skinned,
disembowelled and chopped. This takes
a good half-hour or so. The test to see
whether the animal’s blood has drained
is to touch the animal’s body; if it is still
warm, it means the blood has not drained
completely.
- It is absolutely forbidden to start skin-
ning and cutting the animal when it is
still alive or writhing. Some butchers, es-
pecially the amateur ones, who want to
make the maximum amount of money on
Eid Al-Adha by slaughtering as many ani-
mals as possible, commit grave errors in
the process of slaughter. They should not
be allowed by the animal-owners to thus
abuse the animal. Moreover, it is imper-
missible for Muslims to consume blood
in any form. If the blood has not drained
from the animal’s body completely before
December 2008 | industrialoption.com
it is cut up, it will remain in the veins in-
side the meat, thus rendering the meat
“haraam” for consumption.
- For larger animals such as cows and
camels, only expert butchers should try
to slaughter them on Eid Al-Adha, and
should be booked well in advance. It has
been noted that when inexperienced peo-
ple try to slaughter these large animals
themselves (as expert butchers are very
busy on this Eid), the latter get scared and
become difficult to tie down and subdue,
at times dashing off, causing injuries and
harm.
Go for Eid prayer after the Fajr
prayer:
This prayer is performed exactly the
same way as for Eid Al-Fitr. The entire
household awakens early and takes a full
bath or ghusl, putting on new clothes and
proceeding to the Eidgah or open prayer-
ground, for the early-morning Eid prayer.
The whole family should attend this
prayer, reciting the following “takbeer” all
the way:
Allahu Akbar Allahu Akbar - Allah is the
Greatest, Allah is the Greatest!
Laa ilaaha illallaahu Allahu Akbar - There
is no god except Allah, Allah is the Great-
est!
Allahu Akbar wa lillaahil Hamd - Allah is
the Greatest and for Allah is The Praise!
The Eid prayer is a couple of units or
rak’ah’s, followed by a sermon, or khut-
bah, by the imam (in some schools of ju-
risprudence, the sermon precedes the Eid
prayer).
The one major aspect of this Eid is not to
eat anything on 10th Dhul Hijjah until the
meat of the sacrificial animal is cooked,
and to partake from it as the first morsel
of food for the day. The Prophet Muham-
mad [may peace and blessings of Allah be
upon him] would thus fast from morning
till the sacrifice, and break his fast with
the meat of the animal. This fast is not
compulsory; it is a sunnah of the Prophet
Muhammad [may peace and blessings of
Allah be upon him], and is thus highly rec-
ommended.
Perform the animal sacrifice as soon
as possible after returning home
from Eid prayer:
After the family returns home, the ani-
mals should be sacrificed. This can be
done in the home verandah or courtyard,
or in a neighborhood ground. In Muslim
countries, animals are slaughtered every-
where, from the roads to the streets. In
non-Muslim majority countries, however,
animals can only be sacrificed at designat-
ed places, with prior permission.
If, for some valid reason, the sacrifice can
not be performed on 10th Dhul Hijjah, it
may be performed on the 11th or 12th
(the days of stay in Mina for the pilgrims
in Saudi Arabia). The reward will diminish
with each passing day, though.
Eat from the meat:
A variety of delicious meat dishes await
the Muslims on Eid Al-Adha! No sooner
than the meat reaches the kitchen, that
the appetizing aroma of mouth-watering
delicacies starts wafting from it.
The recipe served immediately for break-
ing the short 10th Dhul Hijjah morning
fast, is “kaleji” (roasted mutton or beef
liver) with naan-bread or paratha.
For lunch and dinner, main courses of
mutton biryani, pulao, beef nihari, qorma,
and shami kababs are extremely popular
in the Indo-Pak region.
Gift meat to relatives and neigh-
bors:
Muslims send fresh meat to neighbors,
relatives and friends as a sign of sharing
and caring throughout the three days of
Eid Al-Adha.
Give meat to the poor and needy:
It would not be an exaggeration to say
that in most developing Muslim countries,
the poor Muslim populace gets to each
meat just once a year - on Eid Al-Adha.
The spirit of charity runs high as every
Muslim who sacrifices an animal is ea-
ger to share their meat with their poor
brethren. Some better-off families go as
far as dedicating several animals solely for
feeding the poor and hungry on the three
days of Eid.
It is heartening to witness the spirit of
sharing and giving on this Eid, as no Mus-
lim goes hungry during the tiring but joy-
ous days of Eid Al-Adha!
Page - 38
Industrial Option December 2008 | industrialoption.com

Dilemma
Dissection of Pakistan

World Bank, IMF, ADB...

?
Government approaching World Bank, IMF
and others for their economic survival

?
Public worried for their economic survival

A country full of Agricultural, Mineral

and other potential resources for
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Be Pakistani. Develop Pakistan.

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