International Islamic University Islamabad Faclty of Management Sciences Bba 17 A Asma.C

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INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD

FACLTY OF MANAGEMENT SCIENCES
BBA 17 A
ASMA.C
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“GLORY TO ALLAH”
Glory to Allah, the Highest, who is exalted and sublime because of his Power and Might, who is near to
everything owing to. His Benevolence and Mercy. He is bestowed of rewards and honor and Dispeller of
calamities and misfortunes. Seek his help to assume piety in life, and seek its help to gain his Blessing because
Piety will act as your shield and defense and in life after death as your Guide to Paradise.
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“DEDICATIONS”
Dedicated to our beloved parents and family who gave us opportunity and full encouragement to get acquainted
the knowledge and to all of those, whose prayers always pave the way to success for us.
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“ACKNOWLEDGEMENT”
We thank to Almighty Allah for giving us knowledge, power and strength to accomplish this task. We learned a lot while doing
this project and this will certainly help us in our forth coming life.
Many special thanks to our teacher SIR IMRAN QURESHI who assigned this project to us assist us and very helpful to
understand the project
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“PROJECT IN BRIEF”
PROJECT TITLE: EXPANSION OF BUSSINESS.
SUPERVISED BY: SIR IMRAN QURESHI
TOOL USED: MS WORD
OPERATING SYSTEM: WINDOWS 2007/XP

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“CERTIFICATION”
It is certified that the contents and form of this assignment is submitted by the student of BBA (HONS.) 17-A has
been found satisfactory for the requirements of supervisors.
Signature of teacher: ______________

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Table of contents
Countries selected……………………………………………………………………………………………………………………………………………………………………………………….11
New Constitution in 2008.................................................................................14

ADMINISTRATIVE DIVISIONS......................................................................................................................................................................................................................... 15
Turkmen Language…………………………………………………………...18
IRAN…………………………………………………………………………………………………………………………………………………………………………………………………………19
POLITICAL CONDITIONS................................................................................................................................................................................................................................ 21
KOHENOOR SUPPLIES FOLLOWING PRODUCTS TO WALMART................................................................................................................ 69
 VALUE ADDED TEXTILES...................................................................................................................................................................... 69
 BED LINENS........................................................................................................................................................................................... 69
 SPORTS WEAR....................................................................................................................................................................................... 69
SALES POLICIES:.......................................................................................................................................................................................... 70
TECHNIQUES............................................................................................................................................................................................... 70
SALES PROMOTION:.................................................................................................................................................................................... 70
SALES PROCEDURE:.................................................................................................................................................................................... 70
KOHINOOR INDUSTRIES LTD. MAKING TWO TYPES OF SALES I.E. LOCAL AND FOREIGN SALES..........................................................70
A) LOCAL SALES:.......................................................................................................................................................................................... 70
THE KOHINOOR INDUSTRIES LTD. MAKING LOCAL SALES IN THREE WAYS, AS DIRECT SELLING BY THE MILLS, SALES THROUGH
AGENT AND SALES BY DISTRIBUTORS....................................................................................................................................................... 70
I) DIRECT SALES:......................................................................................................................................................................................... 70
THE DIRECT SALES ARE MADE BY THE MILLS TO THE CUSTOMERS ON PAYMENTS. MOSTLY THE DIRECT SALES ARE MADE ON CASH
BASIS............................................................................................................................................................................................................ 70
II) SALES THROUGH AGENTS:..................................................................................................................................................................... 70
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B) EXPORT SALES:........................................................................................................................................................................................ 71
 EXPORT DOCUMENTS............................................................................................................................................................................ 71
 CONTRACT............................................................................................................................................................................................. 71
 LETTER OF CREDIT................................................................................................................................................................................ 71
 COMMERCIAL INVOICE......................................................................................................................................................................... 71
 PACKING LIST........................................................................................................................................................................................ 71
...................................................................................................................................................................................................................... 71
MARKETING MIX......................................................................................................................................................................................... 72
1. PRODUCT.................................................................................................................................................................................................. 72
2. PRICE........................................................................................................................................................................................................ 72
3. PLACE....................................................................................................................................................................................................... 72
4. PROMOTION............................................................................................................................................................................................. 72
PRODUCT...................................................................................................................................................................................................... 72
BLENDING RATIO......................................................................................................................................................................................... 72
IN PC RATIO IS 75:25 AND IN PV RATIO IS 85:15, USUALLY YARN OF 23, 26, 38, 44 COUNT IS MADE........................................................73
KI MAIN COMPETITORS ARE NISHAT GROUP, SAPPHIRE GROUP, SITARA GROUP ETC. CUSTOMERS ARE LENGTH CONSCIOUS I.E.
THEY LIKE THE YARN FOR WHICH PER COUNT LENGTH IS MORE........................................................................................................... 73
PRICE............................................................................................................................................................................................................ 73
THERE ARE FOUR BASIC FACTORS WHICH CAN EFFECT THE PRICE OF YARN.........................................................................................73
I) SEASONAL IMPACT................................................................................................................................................................................... 73
II) SUPPLY & DEMAND................................................................................................................................................................................. 73
III) QUALITY OF THE PRODUCT................................................................................................................................................................... 73
IV) QUALITY OF COMPETITOR'S PRODUCTS.............................................................................................................................................. 73
DISTRIBUTION............................................................................................................................................................................................. 74
PARALLEL DISTRIBUTION........................................................................................................................................................................... 75
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COUNTRIES CONSIDERED FOR

SELECTION
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L
h
ig
rew
o
M
IRAN AND
TURKMENISTAN ARE
SELECTED
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REASONs FOR SELECTION

 availability of raw material i.e. cotton
 cheap labor rates
 energy resources
Turkmenistan
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Flag Description
Green field with a vertical red stripe near the hoist side, containing five tribal gulls (designs used in producing carpets) stacked above two crossed
olive branches; five white stars and a white crescent moon appear in the upper corner of the field just to the fly side of the red stripe; the green color
and crescent moon represent Islam; the five stars symbolize the regions or welayats of Turkmenistan; the gulls reflect the national identity of
Turkmenistan where carpet-making has long been a part of traditional nomadic life
Note: the flag of Turkmenistan is the most intricate of all national flags
PEST ANALYSIS
POLITICAL ANALYSIS
The politics of Turkmenistan takes place in the framework of a presidential republic, whereby the President of Turkmenistan is both head of state and
head of government. Turkmenistan has a single-party system, but has, according to the government, begun a transition towards a multi-party system.
Turkmenistan is sometimes described as a "reclusive ex-Soviet nation".After 69 years as part of the Soviet Union (including 67 years as a union
republic), Turkmenistan declared its independence on 27 October 1991.
President for Life Saparmurat Niyazov, a former bureaucrat of the Communist Party of the Soviet Union, ruled Turkmenistan from 1985, when he
became head of the Communist Party of the Turkmen SSR, until his death in 2006. He retained absolute control over the country after the dissolution
of the Soviet Union. On 28 December 1999, Niyazov was declared President for Life of Turkmenistan by the Mejlis (parliament), which itself had
taken office only a week earlier in elections that included only candidates hand-picked by President Niyazov; no opposition candidates were
allowed.The Democratic Party of Turkmenistan is the only one legally permitted. Political gatherings are illegal unless government sanctioned.
New Constitution in 2008
In September 2008, the People's Council unanimously passed a resolution adopting a new Constitution. The latter will result in the abolition of the
Council and a significant increase in the size of Parliament in December 2008. The Constitution also enables the formation of multiple political
parties. President Gurbanguly Berdimuhamedow has stated that "The new constitution corresponds to all international and democratic norms".
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Freedom of association
Formally, according to the Constitution, citizens of Turkmenistan have the right to set up political parties and other public associations, acting within
the framework of the Constitution and laws, and public associations and groups of citizens have the right to nominate their candidates in accordance
with the election law.
Administrative divisions
Turkmenistan is divided into five provinces welayatlar (singular – welayat): Ahal Province (Aşgabat), Balkan Province (Balkanabat, formerly
Nebitdag), Daşoguz Province (formerly Tashauz), Lebap Province (Turkmenabat), Mary Province
ECONOMIC ANALYSIS
Turkmenistan is largely a desert country with intensive agriculture in irrigated oases and sizeable gas and oil resources. One-half of its irrigated land
is planted in cotton; formerly it was the world's 10th-largest producer. Poor harvests in recent years have led to an almost 50% decline in cotton
exports. With an authoritarian ex-Communist regime in power and a tribally based social structure, Turkmenistan has taken a cautious approach to
economic reform, hoping to use gas and cotton sales to sustain its inefficient economy. Privatization goals remain limited. From 1998-2005,
Turkmenistan suffered from the continued lack of adequate export routes for natural gas and from obligations on extensive short-term external debt.
At the same time, however, total exports rose by an average of roughly 15% per year from 2003-08, largely because of higher international oil and
gas prices. New pipelines to China and Iran, that began operation in late 2009 or early 2010, will give Turkmenistan additional export routes for its
gas. Overall prospects in the near future are discouraging because of widespread internal poverty, endemic corruption, a poor educational system,
government misuse of oil and gas revenues, and Ashgabat's reluctance to adopt market-oriented reforms. In addition, the global recession and a
contract dispute with Russia that had virtually stopped exports via this major export route for about 9 months slowed Turkmenistan's economy in
2009. In the past, Turkmenistan's economic statistics were state secrets. The new government has established a State Agency for Statistics, but GDP
numbers and other figures are subject to wide margins of error. In particular, the rate of GDP growth is uncertain. Since his election, President
BERDIMUHAMEDOW unified the country's dual currency exchange rate, ordered the redenomination of the manat, reduced state subsidies for
gasoline, and initiated development of a special tourism zone on the Caspian Sea. Although foreign investment is encouraged, numerous bureaucratic
obstacles impede international business activity.
SOCIAL ANALYSIS
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Although it is not a basis for political groupings, the rather vague phenomenon of tribal identity is a complex social phenomenon that retains
important influence at the end of the twentieth century. The Soviet era added an element of cohesion to a previously loose and unassertive set of
social loyalties among Turkmen.
Social Classes
Turkmen society recognizes a class structure, ideologically based on Marxist doctrine, composed of intelligentsia, workers, and peasants. In practical
terms, the intelligentsia and peasantry consist of Turkmen, while the worker class is the domain of Russians. Power and some wealth are associated
with the Western-oriented intelligentsia, who hold the key positions in government, industry, and education. Most intelligentsia are educated in
Russian language schools, often complete higher educational institutions in Russia, speak Russian as their language of choice, and are concentrated
in urban centers, especially in Ashgabat.
Although many members of the intelligentsia favor cultural revival, more support restricting nationalist manifestations and the role of Islam in
society. Many who are atheists and have identified with Soviet ideals harbor anxieties that distance from traditional values and especially from the
Turkmen language will limit their career potential in the post-Soviet era.
Kinship
Before the Soviet period, the Turkmen were organized into a segmentary system of territorial groups that Western scholars loosely designate as
tribes. These groupings featured little sharp social stratification within or strong unity among them. Tribal structure always has been complex, and the
Turkmen-language terminology used to designate lineage affiliation sometimes is confusing. Generally, the largest groupings, which may be
equivalent to what Western scholarship labels "tribes," are called khalk , il , or taipa in Turkmen. Smaller lineage groups are equivalent to Western
terms like "clans," "subtribes," or "branches." The smallest affiliations are equivalent to subclans or lineages in Western terminology.
In the past, Turkmen tribes remained relatively isolated and politically independent from one another. All tribes possessed specific distinguishing
features. Their dialects differed greatly, and in terms of material culture each large tribe had a unique carpet pattern, clothing, headgear, and brand of
identification.
Although Soviet nationality policy was somewhat successful in diluting tribal consciousness, tribal identity remains a factor in present-day social
relations. Except in such urban areas as Chärjew and Ashgabat, virtually all Turkmen have a knowledge of their parents' and consequently their own
tribal affiliation. A Turkmen's tribal affiliation still is a reliable indicator of his or her birthplace, for example. Lineage still may play a role in the
arranging of marriages in rural areas. In Soviet Turkmenistan, the membership of collective and state farms often was formed according to clan and
tribal affiliation. Although kinship undoubtedly retains significance in contemporary Turkmen society, attempts to use tribal affiliation as the
determining factor in such realms as current politics usually are not instructive.
Until the Soviet period, the Turkmen lacked paramount leaders and political unity. The Turkmen rarely allied to campaign against sedentary
neighbors, nor did they form a unified front against the Russian conquest. Unlike other Central Asian peoples, the Turkmen recognized no
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charismatic bloodline. Leaders were elected according to consensus, and their authority was based on conduct. Raids and other military pursuits
could be organized by almost any male, but the power he exercised lasted only as long as the undertaking. Turkmen tribal structure did include a
leader or chief (beg ), but these positions, too, were mostly honorary and advisory, based on kinship ties and perceived wisdom. Real power was
located among the community's older members, whose advice and consent usually were required prior to any significant endeavor. Although women
rarely assumed prominent political rank and power, there were instances of influential female leaders in the nineteenth century.
The Family
Prior to Soviet rule, the extended family was the basic and most important social and economic unit among the Turkmen. Grouped according to clan,
small bands of Turkmen families lived as nomads in their traditional regions and consolidated only in time of war or celebration. In most cases, the
families were entirely self-sufficient, subsisting on their livestock and at times on modest agricultural production. For some groups, raiding sedentary
populations, especially the Iranians to the south, was an important economic activity.
Although Soviet power brought about fundamental changes in the Turkmen family structure, many traditional aspects remain. Families continue to
be close-knit and often raise more than five children. Although no longer nomadic, families in rural areas still are grouped according to clan or tribe,
and it is the rule rather than the exception for the inhabitants of a village to be of one lineage. Here, also, it is common for sons to remain with their
parents after marriage and to live in an extended one-story clay structure with a courtyard and an agricultural plot. In both rural and urban areas,
respect for elders is great. Whereas homes for the elderly do exist in Turkmenistan, Turkmen are conspicuously absent from them; it is almost
unheard of for a Turkmen to commit his or her parent to such an institution because grandparents are considered integral family members and sources
of wisdom and spirituality.
The marriage celebration, together with other life-cycle events, possesses great importance in Turkmen society. In rural areas especially, marriages
are often arranged by special matchmakers (sawcholar ). Aside from finding the right match in terms of social status, education, and other qualities,
the matchmakers invariably must find couples of the same clan and locale. Most couples have known each other beforehand and freely consent to the
marriage arrangement. Divorce among Turkmen is relatively rare. One important custom still practiced in Turkmenistan is the brideprice (kalong ).
Depending on region and a family's wealth, the bride's family may demand huge sums of money from the groom in return for the bride's hand in
marriage.
The role of women in Turkmen society has never conformed to Western stereotypes about "Muslim women." Although a division of labor has existed
and women usually were not visible actors in political affairs outside the home, Turkmen women never wore the veil or practiced strict seclusion.
They generally possessed a host of highly specialized skills and crafts, especially those connected with the household and its maintenance. During the
Soviet period, women assumed responsibility for the observance of some Muslim rites to protect their husbands' careers. Many women entered the
work force out of economic necessity, a factor that disrupted some traditional family practices and increased the incidence of divorce. At the same
time, educated urban women entered professional services and careers
TECHNOLOGICAL ANALYSIS
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The Turkmen Academy of Sciences, headquartered in Ashkhabad, has 8 attached institutes concerned with natural sciences and technology. In
addition, six independent institutes conduct medical research. In 1991, the Academy of Agricultural Sciences was established, and in 1992, the
Academy of Medical Sciences was created, both in Ashkhabad. The Turkmen A.M. Gorkii State University, founded in 1950 at Ashkhabad, has
faculties of physics, mathematics, and biology. Also in the same city are the Turkmen Agriculture Institute, the Turkmen Polytechnic Institute, and
the Turkmen State Medical Institute (founded in 1932).
PROMOTION OF INFORMATION AND COMMUNICATION TECHNOLOGY IN TURKMENISTAN PICTT

The Promotion of Information and Communication Technology in Turkmenistan (PICTT) program, administered by IREX under USAID’s Global
Civil Society Leader with Associates was launched in 2009. The PICTT program currently provides a wide variety of ICT trainings for higher
education institutions’ (HEI) educators, students, and administrators, helps to prepare educators and students to use computer technologies and
Internet in the classroom, and furthers their professional development, all through the Internet Center for Interactive Multimedia Learning (ICIML) in
the Institute of Language and Literature named after Magtymguly. Educators and government representatives have access to the Internet, peer
networking, training, pedagogical materials, and technical assistance.
Moreover, PICTT will introduce educators to multimedia classrooms, assist teachers in improving curricula that develops students’ ICT skills, and
provide e-library access to educational catalogs and other resources. Planned initiatives include:
Turkmenistan Culture and Language

The culture the Turkmen is slightly different from the cultural traditions of the neighboring Muslim states of Central Asia. The reason to this is that
the ancestors of the Turkmen were nomadic tribes whereas the lands of modern Tajikistan and Uzbekistan were populated by settled tribes of
farmers. This particular fact reflected on such aspect as cultural development of the Turkmen people. The basic cultural milestones of Turkmenistan
are related to the traditions of Turkic-speaking oguzs. The latter go back to the pre-Islamic period. The oguzs' traditions found their reflection in
literature, music, folklore of the Turkmen.
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The most known source of that period is the national oguz epos "Oguz-nameh" also belonging to the cultural legacy of the Turkmen, Azerbaijanis
and Turks. It was passed orally from generation to generation and was written down in the mid-16th century. Another epic monument is the poem
"Kitabi Dede Korkud" which reflected pre-Islamic tribal culture of the oguzs and the influence of Islam in the 11th - 12th centuries. Epic poems were
performed by national singers-storytellers. Along with the introduction of Islam Arabian writing spread in Central Asia. However Turkmen poetry
used chagatai language (very similar to Persian) widely accepted in Central Asia. It was the chagatai language that was used by Turkmen literature.
This language was also used by great Turkmen poets of the 18th century.One of the greatest national poets of Turkmenistan was Makhtumkuli (1730-
1880s). Before Makhtum kuli Turkmen poetry was very similar to Persian that is in the form of Sufi philosophical treatises in poetic form.
Makhtumkuli and his followers started creating their works going beyond the narrow limits of the conventions characteristic to Persian poetry. While
doing this the widely used the motives of Turkmen national poetry and its epic traditions. Seitnazar Seyidi (1775-1836) and Kurbandurdy Zelili
(1780-1836) are considered Makhtumkuli's successors.
Turkmen Language
Turkmen spoken language developed on the basis of dialects of Turkic tongues, western oguz dialects in particular. It was also influenced by kipchak
and old Uzbek (chagatai) languages. In 1928 Arabian alphabet was replaced by Latin, in 1940 Latin alphabet was replaced by Russian. Literary
Turkmen language formed in the 20th century under the influence of tekhin tribal dialect. Modern Turkmen writing is based on Cyrillic, but in the
21st century it is going to be replaced Latin.
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IRAN
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Three equal horizontal bands of green (top), white, and red; the national emblem (a stylized representation of the word Allah in the shape of
a tulip, a symbol of martyrdom) in red is centered in the white band; ALLAH AKBAR (God is Great) in white Arabic script is repeated 11
times along the bottom edge of the green band and 11 times along the top edge of the red band; green is the color of Islam and also
represents growth, white symbolizes honesty and peace, red stands for bravery and martyrdom
PEST ANALYSIS
POLITICAL ANALYSIS
The politics of Iran take place in a framework of theocracy guided by an Islamist ideology. The December 1979 constitution, and its 1989
amendment, define the political, economic, and social order of the Islamic Republic of Iran, declaring that Shi'a Islam of the Twelver school of
thought is Iran's official religion.
Iran has an elected president, parliament (or Majlis), and an "Assembly of Experts" (which elects the Supreme Leader of Iran), and local councils. All
of them must be selected by the Guardian Council before being elected. In addition it has "shadow" or "parallel" institutions intended to oversee the
elected officials and "protect the state's Islamic character". The majority of the Iranian political parties are banned.
Political conditions
As in almost all revolutions, the early days of the regime were characterized by political turmoil. In November 1979 the American embassy was
seized and its occupants taken hostage and kept captive for 444 days. The eight year Iran–Iraq War killed hundreds of thousands and cost the country
billions of dollars. By mid-1982, a succession of power struggles eliminated first the center of political spectrum and then the leftists [2][3][4] leaving the
Ayatollah Khomeini and his supporters in power.
Iran's post-revolution challenges have included the imposition of economic sanctions and suspension of diplomatic relations with Iran by the United
States because of the hostage crisis and other acts of terrorism that the U.S. government and some others have accused Iran of sponsoring. Emigration
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has cost Iran "two to four million entrepreneurs, professionals, technicians, and skilled craftspeople (and their capital)." [5][6] For this and other reasons
Iran's economy has not prospered. Poverty rose in absolute terms by nearly 45% during the first 6 years of the Islamic revolution [7] and per capita
income has yet to reach pre-revolutionary levels.[8][9]
The Islamic Republic Party was Iran's ruling political party and for some years its only political party until its dissolution in 1987. Iran had no
functioning political parties until the Executives of Construction Party formed in 1994 to run for the fifth parliamentary elections, mainly out of
executive body of the government close to the then-president Akbar Hashemi-Rafsanjani. After the election of Mohammad Khatami in 1997, more
parties started to work, mostly of the reformist movement and opposed by hard-liners. This led to incorporation and official activity of many other
groups, including hard-liners. The Iranian Government is opposed by a few armed political groups, including the Mojahedin-e-Khalq, the People's
Fedayeen, and the Kurdish Democratic Party.
ECONOMIC ANALYSIS
Iran's economy is marked by an inefficient state sector, reliance on the oil sector, which provides the majority of government revenues, and statist
policies, which create major distortions throughout the system. Most economic activity is controlled by the state. Private sector activity is typically
limited to small-scale workshops, farming, and services. Price controls, subsidies, and other rigidities weigh down the economy, undermining the
potential for private-sector-led growth. Significant informal market activity flourishes. The legislature recently passed President Mahmud AHMADI-
NEJAD's bill to reduce subsidies, particularly on food and energy. The bill would phase out subsidies - which benefit Iran's upper and middle classes
the most - over three to five years and replace them with cash payments to Iran's lower classes. This is the most extensive economic reform since the
government elevated gasoline rationing in 2007. However, previous government-led efforts to reform subsidies - such as in the 1990s under former
president Hashemi RAFSANJANI - were met with stiff resistance and violent protests. High oil prices in recent years allowed Iran to greatly increase
its export earnings and amass nearly $100 billion in foreign exchange reserves. But with Iran's oil export price from March to December 2009
averaging just $55 per barrel and with a slight decline in oil production over the past four years, the Iranian government is facing budget constraints,
and Iran's foreign exchange reserves dipped to $81 billion at the end of 2009. Tehran formulated its 2009 budget to anticipate lower oil prices and has
reduced some spending. Although inflation has fallen substantially because of lower oil prices, Iran continues to suffer from double-digit
unemployment and underemployment. Underemployment among Iran's educated youth has convinced many to seek jobs overseas, resulting in a
significant "brain drain."
Iran’s economic freedom score is 43.4, making its economy the 168th freest in the 2010 Index. Its score has decreased by 1.2 points from last year,
driven by lower scores in freedom from corruption and monetary freedom. Iran is ranked 16th out of 17 countries in the Middle East/North Africa
region, and its overall score is below the world and regional averages.
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Protectionism and heavy state involvement in many aspects of economic activity have led to economic stagnation in Iran’s non-oil sector and a lack
of overall economic dynamism. A restrictive business and investment environment depresses development of a viable private sector. More than 500
companies are state-owned, and privatization has been negligible in the past year.
Business licensing and closure are regulated heavily by an intrusive and inefficient bureaucracy. High tariff rates and non-tariff barriers impede trade
and foreign investment. Corruption is rampant, and fair adjudication of property rights cannot be guaranteed. The judicial system is vulnerable to
political influence and lacks transparency. The oil sector accounts for nearly 50 percent of the government budget.
Iran’s economy, once one of the most advanced in the Middle East, has been crippled by the 1979 Islamic revolution, the Iran–Iraq war, chronic
economic mismanagement, and corruption. International concern about Iran’s nuclear development activities and support for terrorism remains high.
The United Nations Security Council has imposed three rounds of economic sanctions against the country. Mahmoud Ahmadinejad, who was re-
elected president in June 2009 in an election of questionable legitimacy, has halted tentative efforts to reform the state-dominated economy and has
greatly expanded government spending. In 2008, high world oil prices significantly boosted oil export revenues, which provide about 85 percent of
government revenues, but Iran’s economy remains burdened by high unemployment, rising inflation, corruption, costly subsidies, and an increasingly
bloated and inefficient public sector.
Trade Freedom
Iran’s weighted average tariff rate was 17.4 percent in 2008. Import bans and restrictions, high tariffs and import taxes, export licensing
requirements, restrictive sanitary and phytosanitary regulations, burdensome customs procedures, state trading, arbitrary changes in tariff and tax
schedules and weak enforcement of intellectual property rights add to the cost of trade. Fifteen points were deducted from Iran’s trade freedom score
to account for non-tariff barriers.
Fiscal Freedom
Iran has a relatively high income tax rate and a moderate corporate tax rate. The top income tax rate is 35 percent, and the flat corporate tax rate is 25
percent. All property transfers are subject to a standard tax. A value-added tax (VAT) has been collected and then not collected intermittently since
2005. In the most recent year, overall tax revenue as a percentage of GDP was 6.1 percent.
Investment Freedom
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Foreign investment faces considerable government hostility and is restricted or banned in many activities, including banking, telecommunications,
transport, oil, and gas. All investments must be approved, and the process is not straightforward. The method of calculating the maximum share that
foreign-owned entities are allowed can be non-transparent. The parliament can veto projects in which foreign investors have a majority stake.
Political unrest and uncertainty over international sanctions further deter investment. Most payments, transfers, credit operations, and capital
transactions are subject to restrictions or approval requirements. Only legal permanent residents of Iran may purchase land. Foreign companies may
own property in Iran only if they are registered both in Iran and in their respective countries and make the purchase using their Iranian business
identity.
SOCIAL ANALYSIS
Iranian culture is usually known as Persian culture. With a long-standing and proud civilization, Persian culture is among the richest in the world.
Two and a half millennia of inspiring literature, thousands of poets and writers, magnificent and impressive architecture, live customs dating back to
Zoroastrians over 3000 years ago, and other unique characteristics of the nation are rivaled by only a few countries.
Throughout the history, this grand treasure of Persia was gradually transferred to eastern and western nations. Iran's significant contribution into the
world civilization in many respects is indispensable. Many ceremonies of the ancient Persians are the basis of western celebrations.
Among the ceremonies still being held are Norouz, Charshanbeh Suri, Sizdah Bedar, Yalda Night and Haft Sin. Sitting around Haft Sin and reciting
Hafez, visiting family and friends during Norouz celebration, night of Charshanbeh Suri and jumping over the bonfire in the hope of getting rid of all
illnesses and misfortunes, spending Sizdah Bedar, the 13th day of the New Year, in nature, are old interesting traditions coming from the
Achaemenid Empire.
Another eminent feature of Persian culture is art. In fact culture and art are two closely interwoven concepts forming the soul of human civilizations.
Persian exquisite carpets, subtle soulful classic music, outstanding tile work of unique blue mosques, old influential architectural style and countless
brilliant literary works are famous in the world.
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Persian or Farsi, is one of the world's oldest languages still in use today, and is known to have one of the most powerful literary traditions and
potentials. Persian poetry with masterpieces of Saadi, Hafiz, Rumi and Omar Khayyam is well known around the world.
As all Persians are quick to point out, Farsi is not related to Arabic, it is a member of the Indo-European family of languages.
One more art intertwined with Persian culture, worth mentioning, is the art of cooking. Persian foods, accompanied by herbs and spices are product
of the creativity, skill and patience of many generations of cooks.
TECHNOLOGICAL ANALYSIS
Iran’s Fast Scientific Advancements
A Canadian firm evaluating the global output of science and technology says scientific advancements in Iran have grown 11 times faster than any
other country in the world.
Science-Metrix — a Montreal-based company dedicated to the quantitative and qualitative evaluation and measurement of science, technology and
innovation — has released its most recent report on "geopolitical shifts in knowledge creation" since 1980, Newscientist reported on Thursday.
In the report, Science-Metrix says the number of scientific publications listed in the Web of Science database shows that the standard growth in the
Middle East, particularly in Iran and Turkey, is nearly four times faster than the world average.
“Iran is showing fastest worldwide growth in science,” said Eric Archambault, who authored the report.
"Asia is catching up even more rapidly than previously thought, Europe is holding its position more than most would expect, and the Middle East is a
region to watch," he added.
According to Archambaut, while Iran's publications have somewhat emphasized on nuclear chemistry and particle physics, the country has also made
significant progress in medical science and agriculture development.
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Archambaut said Iran's technological advancements this year have been to an extent that they may even outshine those of China, whose prominence
in world science is known to have been growing.
Despite more than thirty years of Western-imposed sanctions, Iran has made great strides in different sectors, including aerospace, nuclear science,
medical development, as well as stem cell and cloning research.
Among the country's most recent accomplishments, which has garnered international acclaim, was the February 2 launch of Kavoshgar 3 (Explorer 3)
satellite carrier into space with living organisms — a rat, two turtles and worms — onboard.
In January 2010, the country became the first Middle Eastern country to produce transgenic animals, such as sheep and goats that express foreign
proteins in their milk and are, therefore, considered valuable sources of protein for human therapy.
Also Iran has become one of the few countries that have the technology and the means to clone farm animals, which could lead to advances in
medical research, including using cloned animals to produce human antibodies against diseases.
A lamb named 'Royana', a kid named 'Hanna' and two calves named 'Bonyana' and 'Tamina' were the first animals successfully cloned in the country.
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IN-DEPTH ANALYSIS
TURKMENISTAN
GDP (purchasing power parity)
$32.52 billion (2009 est.)

country comparison to the world: 102
$30.65 billion (2008 est.)
$27.74 billion (2007 est.)
note: data are in 2009 US dollars
GDP (official exchange rate):
$27.28 billion (2009 EST)
GDP - real growth rate:
6.1% (2009 est.)

10.5% (2008 est.)
11.6% (2007 est.)
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GDP - per capita (PPP):
$6,700 (2009 est.)

$6,300 (2008 est.)
$5,800 (2007 est.)
GDP - composition by sector:
agriculture: 10.1%
industry: 30.5%
services: 59.4% (2009 est.)
Labor force:
2.3 million (2008 est.)

Labor force - by occupation:
agriculture: 48.2%
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industry: 14%
Unemployment rate:
60% (2004 est.)

Population below poverty line:
30% (2004 est.)
Household income or consumption by percentage share:
lowest 10%: 2.6%

highest 10%: 31.7% (1998)
Distribution of family income -
40.8 (1998)
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Budget:
revenues: $1.459 billion

expenditures: $1.612 billion (2009 est.)
Inflation rate (consumer prices):
10% (2009 est.)

14.5% (2008 est.)
Stock of narrow money:
$469.5 million (31 December 2009 est.)

$495.4 million (31 December 2008 est.)
Agriculture - products:
Cotton, grain; livestock

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Industries:
Natural gas, oil, petroleum products, textiles, food processing
Electricity - production:
15.5 billion kWh (2009 est.)

Electricity - consumption:
13 billion kWh (2009 est.)

Electricity - exports:
Electricity - imports:
0 kWh (2009 est.)

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Oil - production:
197,700 bbl/day (2009 est.)

Oil - consumption:
120,000 bbl/day (2009 est.)

Oil - exports:
38,360 bbl/day (2009 est.)

Oil - imports:
0 bbl/day (2009 est.)

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Oil - proved reserves:
600 million bbl (1 January 2010 est.)

Natural gas - production:
34 billion cu m (2009 est.)

Natural gas - consumption:

Natural gas - exports:

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Natural gas - imports:
0 cu m (2008 est.)
Natural gas - proved reserves:
7.504 trillion cu m (1 January 2010 est.)

Current account balance:
$1.065 billion (2009 est.)

$5.145 billion (2008 est.)
Exports:
$6.737 billion (2009 est.)

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$12.34 billion (2008 est.)
Exports - commodities:
gas, crude oil, petrochemicals, textiles, cotton fiber
Exports - partners:
Ukraine 22.3%, Turkey 10.27%, Hungary 6.75%, UAE 6.25%, Poland 6.16%, Afghanistan 5.79%, Iran 5.17% (2009)
Imports:
$4.109 billion (2009 est.)

$5.601 billion (2008 est.)
Imports - commodities:
machinery and equipment, chemicals, foodstuffs
Imports - partners:
China 18.03%, Turkey 16.49%, Russia 16.45%, Germany 5.91%, UAE 5.81%, Ukraine 5.67%, US 5.41%, France 4.32% (2009)
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Reserves of foreign exchange and gold:
$9.551 billion (31 December 2009 est.)

Debt - external:
$5 billion (2009 est.)

$1.4 billion (2004 est.)
Exchange rates:
Turkmen manat (TMM) per US dollar - 2.85 (2009), 14,250 (2008)
IRAN
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GDP (purchasing power parity):
$825.9 billion (2009 est.)

$813.7 billion (2008 est.)
$793.9 billion (2007 est.)
GDP (official exchange rate):
$325.9 billion (2009 est.)
GDP - real growth rate:
1.5% (2009 est.)

2.5% (2008 est.)
7.8% (2007 est.)
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GDP - per capita (PPP):
$10,900 (2009 est.)

$10,800 (2008 est.)
$10,700 (2007 est.)
GDP - composition by sector:
agriculture: 10.7%
industry: 44.4%
Labor force:
25.02 million
note: shortage of skilled labor (2009 est.)
Labor force - by occupation:

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agriculture: 25%
industry: 31%
services: 45% (June 2007)
Unemployment rate:
11.8% (2009 est.)

10.3% (2008 est.)
note: data are according to the Iranian Government
Population below poverty line:
18% (2007 est.)
Household income or consumption by percentage share:
lowest 10%: 2.6%

highest 10%: 29.6% (2005)
Distribution of family income - Gini index:

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44.5 (2006)
Investment (gross fixed):
27.3% of GDP (2009 est.)

Budget:
revenues: $93.61 billion

expenditures: $93.04 billion (2009 est.)
Public debt:
16.8% of GDP (2009 est.)

18.2% of GDP (2008 est.)
Inflation rate (consumer prices):

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13.5% (2009 est.)
25.6% (2008 est.)
note: official Iranian estimate
Central bank discount rate:
NA% (31 December 2009)

NA% (31 December 2008)
Commercial bank prime lending rate:
12% (31 December 2009 est.)

12% (31 December 2008 est.)
Stock of narrow money:
$48.16 billion (31 December 2009)

Stock of broad money:

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Stock of domestic credit:

Market value of publicly traded shares:
$NA (31 December 2009)

Agriculture - products:
wheat, rice, other grains, sugar beets, sugar cane, fruits, nuts, cotton; dairy products, wool; caviar
Industries:
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petroleum, petrochemicals, fertilizers, caustic soda, textiles, cement and other construction materials, food processing (particularly sugar
refining and vegetable oil production), ferrous and non-ferrous metal fabrication, armaments
Industrial production growth rate:
4% excluding oil (2009 est.)

Electricity - production:

Electricity - consumption:

Electricity - exports:

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Electricity - imports:
Oil - production:
4.172 million bbl/day (2009 est.)

Oil - consumption:

Oil - exports:

Oil - imports:
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162,500 bbl/day (2009 est.)

Oil - proved reserves:
137.6 billion bbl based on Iranian claims

note: Iran has about 10% of world reserves (1 January 2010 est.)
Natural gas - production:
116.3 billion cu m (2008 est.)

Natural gas - consumption:

Natural gas - exports:

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Natural gas - imports:

Natural gas - proved reserves:
29.61 trillion cu m (1 January 2010 est.)

Current account balance:
$1.913 billion (2009 est.)

Exports:
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$69.04 billion (2009 est.)

$101.3 billion (2008 est.)
Exports - commodities:
petroleum 80%, chemical and petrochemical products, fruits and nuts, carpets
Exports - partners:
China 16.58%, Japan 11.9%, India 10.54%, South Korea 7.54%, Turkey 4.36% (2009)
Imports:
$58.97 billion (2009 est.)

Imports - commodities:
industrial raw materials and intermediate goods, capital goods, foodstuffs and other consumer goods, technical services
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Imports - partners:
UAE 15.14%, China 13.48%, Germany 9.66%, South Korea 7.16%, Italy 5.27%, Russia 4.81%, India 4.12% (2009)
Reserves of foreign exchange and gold:

Debt - external:

Stock of direct foreign investment - at home:

Stock of direct foreign investment - abroad:

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Exchange rates:
Iranian rials (IRR) per US dollar - 9,900 (2009), 9,142.8 (2008), 9,407.5 (2007), 9,227.1 (2006), 8,964 (2005)
Note: Iran has been using a managed floating exchange rate regime since unifying multiple exchange rates in March 2002
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COMPANY SELECTION
KOHENOOR TEXTILES MILLS PAKISTAN

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History of Pakistan Textile Industry
Increase in the cotton production and expansion of textile industry has been impressive in Pakistan since 1947. Cotton – bales increase from 1.1
million bales in 1947 to ten million bales by 2000. Number of mills increased from 3 to 600 and spindles from about 177,000 to 805 million similarly
looms and finishing units increased but not in the same proportion. It employs 50% of industrial labour force and earns 65% foreign exchange of total
exports. Pakistan’s textile industry experts feel that Pakistan has fairly large size textile industry and 60-70% of machines need replacement for the
economic and quality production of products for a highly competitive market. But unfortunately it does not have any facility for manufacturing of
textile machinery of balancing modernization and replacement (BMR) in the textile mills which need to think about joint ventures for the production
of complete spinning units with china, Italy and production of shuttle less looms (Projectile) with Korea, Taiwan and Italy.
Cotton textile industry has been premier industry in Pakistan and a major source of export earning and employment. It also helps in value addition to
the manufacturing sector of the economy. During the six years between 1993 and 1998, production of yarn (in quantity terms) registered a steady
annual growth rate of 302% in Bangladesh and 405% in India. On the contrary, Pakistan registered a growth rate of 101% per annum in yarn
production although it ranked third after China and India in the global yarn production during the same six years. In exports, while Taiwan, India and
the republic of Korea registered an annual increase of 18.1%, 27.7% and 5.4% respectively during 1993-1998, Pakistan registered a negative growth
of 4.8% one important development was that till 1997, Pakistan was the world’s largest exporter yarn followed by India. However, in 1998, India
gained the NO 1 position, leaving Pakistan at NO 2 In the case of cotton cloth production, a number of Asian countries have been emerging in the
international market to compete with Pakistan. These countries are Bangladesh, India, Taiwan, Indonesia, Thailand, Turkey, Sri Lanka and Iran. The
latest available date on overall export performance of Pakistan comported with some regional countries is given in table 1: The above-mentioned
presentation in the context of international scenario highlights the adverse position of Pakistan’s textile industry when is likely to continue further
following the full implementation of WTO agreement from 2005 onwards when an era of free trade will start globally. Notwithstanding the above
fact, current stagnation in the local textile industry can be overcome through efforts, consistent with charges occurring in the international market. It
must be appreciated that all successive governments since the birth of cotton textile industry in Pakistan have been encouraging the textile exporters
to penetrate into new market and also to broaden the base of exportable commodities by including value added textile goods so that reliance on
exports of cotton, cotton yarn and coarse fabrics gradually become minimal.
Reflecting on the state of affairs, Abid Chinoy, Pakistan cloth merchants Association (PCMA) Chairman, Appreciated government’s efforts to
encourage new exports and finding new markets, which need aggressive export marketing. The steps taken on the monetary front, such as the
frequent devaluation of Pak rupee in terms of dollar could not improve the cost competitiveness of exportable products due to increase in prices of
the local and imported inputs of the local textile industry, and also due to inelastic demand for the Pakistan’s exports. It has been rightly mentioned in
the latest stage bank of Pakistan’s annual report (FY01) that, “Over the years Pakistan’s exports receipts have been vulnerable on account of the
narrow base of exportable items, concentrated markets and low value addition ‘this indicated that the growth in the country’s overall exports,
including textile products which contributed more then 60% of total export receipts each year, could to be related some cosmetic and ad hoc measure
like devaluation of Pak rupee and concession export credits. The first textile commission, which was constituted by the first material law government
in 1960 had, inter-alia, recommended that an economic size textile unit should preferably have 25,000 spindles and 500 looms. No new mill with
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only 12,500 spindles and without looms should be sanctioned. However, no need was paid to the advice by the sanctioning authorities with the result
that an excess capacity had tented to build up in the spinning sector.
During the period 1973 to December 1992, some 71 spinning units with 1,136, 835 spindles, 6,600 rotors ands 7,329 looms were closed down. In
1992, a foreign consultant form was hired by the government to look into the stagnating conditions in the local textile industry. One of the
observations of the foreign consultant was “Pakistan has failed to make real progress in the international market and is being over taken by many of
the neighboring competitor countries. The spinning sector, traditionally the core of the industry, is already in the crisis with many spindles lying idle
and mills being forced to close. Worse still, this sector will be hit by the projected decline of its major markets in Japan and Hong Kong in the
coming years.”
Another important strategic recommendation given by the foreign consultant very much relevant to the current
Conditions: “It is vital that companies play very positive role in the markets, which each one having its own marketing activity, whose job is to
understand the need of the customers and the ever changing competitive dynamics of the markets. In order to improve exports, Pakistan’s
Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged the commerce minister Abdul Razzak Dawood to set up an
Apparel Board for the promotion of export of woven and kit garments which fetch US$ 2.5 billion foreign exchange for the country. The industry
experts are of the opinion that in the order to have a strong industrial base, Pakistan economy need investment upswing. Pakistan’s economic growth
performance during recent years has been dismal: as against the average growth rate of 6.1% in the 1980s, the half and 4.0% in the 2nd half of the
1990s. The major micro-economic instability factors like high inflation rate, budgetary deficit, continuous depreciation of rupee, economic sanctions,
etc. could not help the investment process. Such an environment cannot be conducive to investment and growth. Exporters of textile products have
found the target of US$ 10.4 billion set by the government for the year 2002-2003, as achievable and termed it a realistic approach. The textile sector
which constituted 69% of total export during 2001-2002, believes that enhanced quota by the European Union and Turkey would make this possible
to fetch another US$1 billion this year.
The rise in export of value-added products from Pakistan was another point of encouragement for the textile sector. “The export of value-added
products rose to 57.4% from 53.9% last year-a clear sign that we are moving in the right direction, “said the Chairman of all Pakistan textile mills
association.
The trade policy is considered an acceptable paper, but in the industry does not fine anything that could lead to a high level exports achievement and
remove trade imbalance.
Pakistan’s textile sector earned US$5.77 billion during the outgoing year, compared with US$5.577 BILLION OF 2000-2001 indicating a growth of
0.69%. “Textile vision 2005” has identified the present status and opportunities to make in roads in conventional and hew markets and has
developed sectoral recommendations, hence the sectoral committees set up by the Federal Textile Board (FTB) would play an important role be
ensuring the availability of quality raw materials on competitive prices and improvement in designing, and would adopt quality standards and
increase productivity levels. It would attract foreign brands and promote Pakistani brands with world-class standers.
With such a positive trend, Pakistan’s textile sector is getting rid of old impediments and gearing itself up for the new opportunities in the new trade
regime.
Textile Uses:
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Textiles have an assortment of uses, the most common of which are for clothing and containers such as bags and baskets. In the household, they are
used in carpeting, upholstered furnishings, window shades, towels, covering for tables, beds, and other flat surfaces, and in art. In the workplace, they
are used in industrial and scientific processes such as filtering. Miscellaneous uses include flags, backpacks, tents, nets, cleaning devices, such as
handkerchiefs; transportation devices such as balloons, kites, sails, and parachutes; strengthening in composite materials such as fibre glass and
industrial geotextiles, and smaller cloths are used in washing by "soaping up" the cloth and washing with it rather than using just soap.
Textiles used for industrial purposes, and chosen for characteristics other than their appearance, are commonly referred to as technical textiles.
Technical textiles include textile structures for automotive applications, medical textiles (e.g. implants), geotextiles (reinforcement of embankments),
agrotextiles (textiles for crop protection), protective clothing (e.g. against heat and radiation for fire fighter clothing, against molten metals for
welders, stab protection, and bullet proof vests. In all these applications stringent performance requirements must be met. Woven of threads coated
with zinc oxide nanowires, laboratory fabric has been shown capable of "self-powering nanosystems" using vibrations created by everyday actions
like wind or body movements.
KOHENOOR TEXTILES MILLS PAKISTAN
Kohinoor Textile Mills was established in 1953, initially with 25,000 spindles and 600 looms with further expansion in 1954. The company
embarked upon a program of modernization and in the last decade, replacement and refurbishment has seen the installation of high technology
processing, printing and finishing facilities.
Commercial processing for customers, which was not originally envisioned, has also begun. Presently the unit comprises Appx.150,000 spindles
along with complete processing capabilities for scouring and bleaching, mercerizing, dying printing and stitching. Weaving no longer exists at the
plant which has since been relocated to Kohinoor Raiwand Mills (A Divsion of Kohinoor Textile Mills Limited).
Plant is located at Peshawer Road Rawalpindi. the Spinning plant has equipment from Crosrol U.K. and Toyota Japan. The company's products are
sold in both local and export markets. Regular exports sales to South East Asia UK / Europe U.S.A, Hong Kong, Japan and Australia is a testimony
to an ever growing list of satisfied customers who perceive KTML as a manufacturer of quality textile. In 1992 the Company participated in the
acquisition of Maple Leaf Cement Factory Limited from Privatization Commission, Government of Pakistan.
Kohinoor Textile Mills Limited was initially certified to ISO 9001 by LIyods Register Quality Assurance, UK on December 16, 1998. Now Kohinoor
Textile Mills Limited is certified under the revised ISO standards ISO 2000 from June 2003.
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BUSINESS LINES OF KOHENOOR TEXTILES
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PLAN FOR OPENING A SPINNING MILL IN IRAN AND TURKMENISTAN
TEXTILES SPINNING MILLS
REASONS FOR EXPANSION OF TEXTILE MILLS

1. due to lack of energy resources in Pakistan,kohenoor has to expand its business to the
countries where it can easily work
2. labor is cheap
3. Kohinoor textile mills cannot meet the orders of its largest customer wall-mart, so it has
to increase its production capacity.
4. Availability of quality raw materials.
Kohinoor Spinning Mills Ltd. is a Pakistan-based company. The Company is engaged in the business of textile spinning. The plant has capacity of
57,864 spindles. Its products include carded yarn, combed yarn and lycra yarn. The Company exports cotton carded yarn to various countries
however most exports of the Company are targeted to Hong Kong, Korea, Singapore, Malaysia, Indonesia and United States. The Company operates
through its SUPER LEMON brand name.
Introduction:
Spinning is conversion of fibers into yarn. These fibers can be natural fibers (cotton) or manmade fibers (polyester). Spinning also entails production
of manmade filament yarn (yarn that is not made from fibers). Final product of spinning is yarn. Cotton value chain starts from Ginning that adds
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value to it by separating cotton from seed and impurities. Spinning is the foundation process and all the subsequent value additions i.e. Weaving,
Knitting, Processing, Garments and Made ups, depend upon it. Any variation in quality of spinning product directly affects the entire value chain.
2. Market:
The world cotton cultivation area and cotton production are estimated at around 30-31 million hectares and 20 million tons respectively. The biggest
cultivators of cotton are America, India, China, Egypt, Pakistan, Sudan and Eastern Europe. India is the third largest producers of cotton after USA
and China. USA has a considerable share in world exports. India and China both fall short of their domestic requirement and are net importers.
Andhra Pradesh is 3rd largest state in India which grows cotton. Among the consumers China leads the way being followed by India, Pakistan, USA
and Turkey. Indian Textile Industry contributes 4% to the GDP of the country, it contributes 14% to Industrial Production, 9% of excise collections,
18% of employment in industrial sector, and has 16 % share in country’s export. Textile industry provides employment to 35 million people in India.
3. Raw Material:
The main raw material for the spinning process is Ginned cotton will be available in Bales of 170 Kgs/bale.
4. Manufacturing Process& Technology
Spinning process is shown in the flowchart given below. Cotton which is in the form bales is fed to blow room followed by various operations like
carding and combing depends on the requirement. The final yarn of required specifications are met through these operations and winded.
5. Technology:
The Plant & Machinery required for the Spinning Mill process for manufacturing yarn of different counts are blow room machinery, metal detection
system, spark diversion system, carding machines, card accessories, draw frame (Finisher & Breaker), speed frame, combers, ring frame, electrical
infrastructure, yarn testing instruments, humidification and waste collection system and automatic cone winding machine etc.
6. Investment:
The investment for setting up a spinning mill with a capacity of 14400 spindles works out to Rs. 26.90 Crores and the break up of the cost is
tabulated below.The land requirement will be around 2.5 acres. The Preliminary & Pre-operative expense works out to Rs 1.36 crores. Plant &
Machinery including installation, erecting & transportation charges are of 16.91 Crores. Buildings and civil works are estimated to be 6.55 Crores.
Errection & Transportation and electricity deposits have been considered in the project cost. Margin money for working
capital is estimated to be 1.60 Crores.
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S.No. Description Cost

(Rs in Crores
1 Land & Site Development 0.08
2 Buildings & Civil Works 6.55
3 Plant & Machinery (Indigenous) 12.47
4 Plant & Machinery (Imported) 4.44
5 Erecting & Transportation 0.20
6 Electricity Deposits 0.20
7 Preliminary Expenses 0.10
Project Cost 8 Preoperative Expenses 1.26
9 Margin Money for Working capital 1.60
Total Project Cost 26.90
Means of Finance
The project is proposed to finance with a debt equity ratio of 2.26:1 and the means of finance is as follows:
s.no Source of fund cost

1 Share capital equity 8.24
2 Term loan 18.66
total 26.90
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PROCESS OF SPINNING
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SWOT Analysis
Strengths:
Having own electricity plant:
KWML having own electricity power plant which is producing not only for the KWML but also providing electricity to other companies and to govt.
at subsidy rate.
ERP software:
ERP (Enterprise Resource Planning) has been installed in KWML that’s why company is saving all records in systems and having huge database.
Power Looms:
KWML has purchased latest power looms Toyota Air Jet Power Looms. That’s why they have reduced the production cost and have increased the
quality and efficiency of their textile products.
Cross Cultural Communication:
In KWML there are near about 4500 employees who are from different environments and having different cultures but fortunately there is no cross
cultural communication.
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Market Reputation:
KWML is one of the major Mills in Pakistan that’s why they have little bit reputation in local market and having trust from investors.
Weaknesses:
Employee’s motivational level:

The one weakness of KWML is that their employees are not motivated that’s why they are getting off and putting their resigns in front of managers
and executives. This is the responsibility of HR department to find out at to see at the time of hiring them that what the thing is that their employees
can be motivated.
Every booked order is delivered lately:
The delivery of each contract is always not done on time. The customer has to wait for 4 to 5 weeks to get his/her desired product. The main reason is
that late purchasing of raw material. Raw material just like Yarn and Sizing material is not available on time and some time it happens that there is
shortage of raw material during the running contract that’s why production department has to wait for the raw material.
Administrative Expenses:
There are high overhead charges throughout the year particularly administrative expenditures. Management whether it is lower management or upper
management, the expenditures are same but company is getting equally profit from them that’s why expenditures are increasing.
Reliability on Foreign Customers:
Always organization has to rely on foreign customers and it would become risk especially in financial matters and possibility of fraud would be there.
KWML is too much depending upon their foreign customers. They have limited number of foreign customers but these are also losing by lacking of
quality and little bit high cost.
Commercial Department:
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Commercial department of KWML is showing its little bit bad performance. Means always the yarn is purchased late and on credit and payments are
done by the department always very late. There is no proper or pre-plan for the month or for couple of weeks so that amount should be received to
pay the suppliers. Each time purchasing of yarn is done belatedly so that looms not run and hence per day cost increased and depreciation also.
Go down Position:
There is no proper placing for final products to place them safely and at the time of their dispatch
there is possibility of mistake.
ERP Software:
It’s good that KWML has ERP software in their systems. But there are number of errors that are occurred much time. For example, during the
dispatch of product, you have to click all the rolls manually. There is no option to select them all and other problem is to calculate the weight of
packed rolls. You have to do all these things manually.
Communication Gap:
There are a little bit gaps in communication between the departments. May be these confirm each and every thing from each other but still they make
mistakes and blame each others to safe them.
Team Building:
A major problem is team building. There is almost no concept of team. Each person is doing individually and performing his/her activities.
Casual Attitude:
The attitude among the employees is very casual. No one following the rules and regulations of the company. Some implementation is done among
the executives but not at managerial level.
HR Department:
HR Department is almost useless and only performing two activities. These activities are making salaries and attendance of the employees and
workers. They are not working to train the employees and making appraisals to evaluate them.
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Marketing of textile products:
KWML has no proper planning for the Marketing. They advertise about their selves only from newspapers. That’s why limited number of people
knows about them.
Threats:
Political instability:
As we all know that the political situations of Pakistan are one of the worst situations of the whole world. Each new government establishes its new
rules and regulations which impact the industries badly. Now a day there are many major issues which are affecting the textile industry as well as
other countries just like Musharaf’s impeachment, PM Shaukat Aziz Fraud, New elections for Provisional and national assemblies and the major
issue was the murder of BB Banizr Bhutto. Now the new government of Pakistan has implemented some new rules for the textile industry which are
almost of them are not in fever of the industrialists. These are
 31% increment in the prices of Gas
 Near about 10 rupees per liter increment in price of petroleum
 Bann to export the raw cotton
 No subsidy for the research and developments in the textile industry
Against these rules and implications, All Faisalabad Textile Mills boycott in July 2008 by shutting down their Mills and factories. Now the
government has provided them some subsidy in Gas prices.
High consumption of petroleum:

The high consumption of the petroleum is also the major issues because in international market, their prices are going up and touching sky, due to
which the freight costs are increasing day by day and hence the cost of production, is also increasing rapidly which is becoming the reason of losing
foreign customers of Pakistan.
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Shortage of electricity:
The government of Pakistan still unable to provide the required quantity of electricity, the usage of electricity has been increased. The companies
who have their own electricity plants are save but those who don’t have are facing a major problem of shortage of electricity.
Employees:
Kohinoor Weaving Mills limited is facing a major problem of their employees because they getting off from KWML. They think that they are not
getting reasonable and valuable salaries and incentives from the company. The major reason is also that company is losing its value and reputation in
the local market as well as in international market, that’s why they are getting off from the company to secure their future and present as well.
Poor Research & Developments:

KWML has not been working for better Research and Development Department for some years. They are not focusing to improve their technology
and expand their market share. They just keeping focus on their current systems which are producing not too much good quality products that’s why
some of foreign customers are dissatisfied from them and shifted towards other suppliers.
Increment in freight charges:
The prices of petroleum have been increased and still increasing rapidly. That’s why the freight charges have been increased and the cost of
productions has also been increased by the huge amount. Due to these increments, the sale price has also been increased but customers are not ready
to pay more for a good quality instead of better quality. And transport companies are demanding more increments to use their transportation services.
International and local competitors:

One of the major threats at international level which KWML and textile industry of Pakistan has to face, is international competition which is
growing up and competitors are capturing the market share rapidly that’s why Pakistan’s market share in foreign market is cutting down gradually
due to high cost but poor quality of their textile products.
In local market, there are many companies in Pakistan who are improving their quality of textile products by acquiring new technologies. The big
giants of Pakistan textile industry are
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GLOBAL MARKETING
 NISHAT TEXTILE
 SAPHIRE TEXTILE
 KTM TEXTILE
 COLONY TEXTILE
 YUNIS TEXTILE
 CHENAB TEXTILE
 AL-KARAM TEXTILE
 GULISTAN TEXTILE
 FAZAL TEXTILE
Lowest price of fabric in world for USA & UK countries:

This would surprise for all of us that Pakistan is offering lowest prices the UK and USA market. But sorry to say that these prices are coming down
gradually due to losing the quality in their products and services as well. In USA the price per meter is $0.91 which is the lowest price in compare
with other international and especially Asian Suppliers.
KWML also facing the same problem same which is faced by the Pakistan textile industry. But there are some customers who are still working with
KWML which is good for the company for its present situation and for future.
Opportunities:
New Technology:
The technology has been improved for the textile industry and these technologies are being acquired by the international competitors as well as by
local competitors so they are producing good quality textile products and increasing the efficiency as well as decreasing the cost of production.
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GLOBAL MARKETING
KWML has the opportunity to invest for the new technology. By acquiring the latest technology, they can increase the production quality, efficiency
and can decrease the cost of production.
Motivating the employees:

HR department can prove and show them they are here for employees by motivating the employees performing their best. They can find the
motivation level of their employees and give them incentives to motivate them.
Projects for the local market:

KWML has the opportunity to capture the market share locally by launching new projects just like they are launching “Dhanak “in August 2008.
They can start new projects in garments, Apparels, and in home textile.
Advertising:
KWML has the opportunity to advertise about their selves to promote their textile products.
They can advertise in international magazines about their selves KWML can publish its own local business magazine to promote their selves can be
advertised over the internet (electronic Marketing) .
KWML’s own Shops:
KWML can open its own shops in local market where they can display their garments products and Apparels as well as curtains. The big advantage
would be that advertising would be done automatically and your textile products would also be sold to local market.
Online Shopping Store:
KWML can open its online store where they can show their garments variety and apparels. The advantage of this step would be
 Online Marketing
 Capturing the market over internet internationally
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GLOBAL MARKETING
 Capturing the market over internet locally
 The material which you put on your fair price shop can be sold out at online shop.
MAJOR CUSTOMER OF KOHENOOR TEXTILES
Wal-Mart
Wal-Mart has 8,500 stores in 15 countries, with 55 different names. The company operates under its own name in the United States, including the 50
states. It also operates under its own name in Puerto Rico. Wal-Mart operates in Mexico as Walmex, in the United Kingdom as Asda ("Asda Wal-
Mart" in some branches), in Japan as Seiyu, and in India as Best Price. It has wholly owned operations in Argentina, Brazil, and Canada. Wal-Mart's
investments outside North America have had mixed results: its operations in the United Kingdom, South America and China are highly successful,
while it was forced to pull out of Germany and South Korea when ventures there were unsuccessful.
 Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store.
 Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom
based retailer ASDA).
 The company has a core competence involving its use of information technology to support its international logistics system. For example, it
can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement.
 A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time
and money in training people, and retaining a developing them.
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GLOBAL MARKETING
KOHENOOR supplies following products to WALMART

 Value added textiles
 Bed linens
 Sports wear
 All the products are being exported in shape of Bleached, Dyed & Printed Piece Goods and Home Textile Products including Bed Linen (Duvet Covers,
Bed Sheets, Fitted Sheets, Valance Sheets, Bed Skirts, Comforters, Bed Spreads, Pillow Covers, Pillow Shams), Furnishing Items (Ready Made Curtains,
Pelmets, Drapery Sets, Tie Backs, Cushion Covers) and Table Linen (Table Covers, Napkins, Seat Pads, Table Mats).
To fulfill this demand we have expanded the spinning mills in Iran and Turkmenistan. After producing this basic product in these countries we will
supply it back to the home country where it would be converted in to finished products and then supplied to the customers.
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GLOBAL MARKETING
SALES POLICIES:
Success of any organization depends upon its sales volume. Main objectives of its organization are to increase sales and capture new markets. Sales
policies may change from time to time for the betterment of company. The company policies are channel of distribution, maximum output in the
market with marginal profit, responsible pricing policies and market arrangements regarding the advertisement and sales promotion techniques.
SALES PROMOTION:
The mills promote its sales through its market observers and sales agent by their personal visit and to convince the customers and to make them sure
good services and quick delivery.
SALES PROCEDURE:
Kohinoor Industries Ltd. Making two types of sales i.e. local and foreign sales.
A) LOCAL SALES:
The Kohinoor Industries Ltd. making local sales in three ways, as direct selling by the mills, sales through agent and sales by distributors.
i) Direct sales:
The direct sales are made by the mills to the customers on payments. Mostly the direct sales are made on cash basis.
ii) Sales through Agents:
The procedure of agent system sales is that goods are dispatched to sales agent and the sales agent distributes it to various branches. Agents are
advised to sell the goods at the best possible rates prevailing in the environment. After making sales the commission is deducted by the agents and the
remaining proceeds is send to the mills. The agent submit daily sales amount and reports, describing the goods sold by them, received by them and
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GLOBAL MARKETING
the inventory unsold. In the daily performance report they mentioned the selling price, discounts and shipment procedures made to the buyers. Mostly
the goods are sold through agent in Pakistan and exported to foreign countries.
B) EXPORT SALES:
For making export sales, Kohinoor Industries Ltd. has established a marketing division at Lahore, the main purpose of this division is to attract the
foreign buyers and to increase the demands for Kohinoor Industries Ltd's products in international market.
On the other hand when a foreign party is interested in the product of Kohinoor, they approach the marketing division at Lahore then inform the
marketing division about the foreign interested party at head office. After a satisfactory discussion and correspondence a contract is made reflecting
the different aspects of sales when the foreign buyers are agreed upon the quantity, quality selling price and delivery schedule he is asked to establish
a letter of credit.
 EXPORT DOCUMENTS
 CONTRACT
 LETTER OF CREDIT
 COMMERCIAL INVOICE
 PACKING LIST
 GSP
 CERTIFICATE OF ORIGON
 EXPORT FORM
 INSPECTION CERTIFICATES
 US CUSTOME INVOICE
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GLOBAL MARKETING
 UNDERTAKING
 TRUST RECIEPT
 LETTER OF GUARANTEE
 LETTER OF CREDIT:
It is a formal acknowledgment and type of advance payment by the buyer to the supplier. The supplier can not receive the money until and unless
delivery has been made to the buyer. Under this arrangement the importers made an advance payment to his bank to the importers bank, in Pakistan.
In broad speaking letter of credit (L/C) is a discussion between two banks on export and import of goods. The established L/C includes the line of
delivery goods and other requirements of importers. The marketing director informs the mills at Faisalabad produce such and such type of goods upto
specific period at time as mentioned in L/C. They ship the written goods with in the stipulated period of L/C to the foreign buyer. The necessary
documents are delivered to the bank and payment is received in the form of Pakistan rupee by converting the foreign currency into Pakistani rupees
according to the foreign exchange rules. KIL always opens an irrevocable L.C.
MARKETING MIX
1. Product
2. Price
3. Place
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4. Promotion　
PRODUCT
The product of Kohinoor Industries is yarn. KI produces different counts of yearn with different blending ratios.count; If one pond raw material gives
840 yards of fiber (yarn) then its count would be one
840 yards = 1 hank = single count, 840x2 yards = 2hank = Double count.
Blending Ratio
It is the ratio in which different kinds of raw material (cotton, viscouse) are blended. The products of Kohinoor Industries Ltd. are made from three
types of raw material i.e cotton, viscouse & polyester. With different counts and blending ratios, different types of yarn are produced. For example
100% cotton, PV (which is polyester and viscouse), PC which is made by blending kdyester with cotton.
In PC ratio is 75:25 and in PV ratio is 85:15, usually yarn of 23, 26, 38, 44 count is made.
KI main competitors are Nishat Group, Sapphire Group, Sitara Group etc. customers are length conscious i.e. they like the yarn for which per count
length is more.
PRICE
There are four basic factors which can effect the price of yarn.
i) Seasonal impact
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GLOBAL MARKETING
ii) Supply & demand
iii) Quality of the product
iv) Quality of competitor's products
There are some other factors also for example whether the customers are price conscious or quality conscious. This factor affects a little because most
of local customer are price conscious and foreign customers are both price as well as quality conscious. Seasons impact the demand and so the
producer has to keep seasonal changes in mind when pricing the yarn. If in a season there is much demand then automatically prices will rise and
case will be reverse for surplus supply by the industry.
Quality of yarn is another major factor which affects the price, if quality is better than competitors; definitely the price would be higher and for lower
quality price will be lower. If the product is once spread and established in the market KI keeps on gradually increasing the price and at the same time
observing the responses of customers.
DISTRIBUTION
KI distribution network is very simple but effective. The industry has a very big market of Faisalabad with many competitors. KI has five distributors
in Faisalabad and they are bound to buy particular amount of yarn from KI. They have submitted their securities with KI.
KI also has agencies to which yarn is given and these agencies distribute yarn all over the Pakistan. Multan, Karachi and Lahore are the cities where
agencies send yarn to distributors and other customers.
PROMOTION:
Promotional strategies
 direct marketing
 indirect marketing
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Direct marketing
 Presentations: Presentations that are given at hotels and other places

 Free samples: are also provided so that a customer get an idea about quality and excellence
 Agents: direct marketing is done through agents in each country a display centre has been established
 Sales promotion managers tours: These are arranged to find new buyers in foreign market.
 INDIRECT MARKETING
Agents: The agents make arrangement between both the parties’ buyers and sellers. The agent receives commission for this service.
Advertising
 sign boards
 print media
 calendar and dairy
 magazines
 email and post mail
Parallel Distribution
Manufacturin Home Retailer or

g country mill
Major Chain
i.e. wall mart

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GLOBAL MARKETING
Direct Factory outlet

marketing
A snapshot of International Competitors in Industry

Garments account for 80% of overall exports by Bangladesh - US$9.5 billion out of a total US$12.18 billion in export earnings in the financial year
to June 2007, with forecasts that it will cross the US$11 billion mark this year. The Bangladesh Garment Manufacturers and Exporters Association is
expecting to double apparel exports to US$18 billion by 2010.
A substantial share of the fabrics produced in China is being converted into garments in Vietnam, which is therefore a major exporter to the US with
exports of $4.6 billion in 2007. But analysts believe these indirect exports of China would also decline in the coming months, leaving a larger part of
the US market for countries like India to capture.
In 2007, China launched a series of policies, including subsidy to high quality cotton seed and policy insurance. According to the "Eleventh Five-
Year Plan" (2006-2010), China plans to pick up the construction of high-quality cotton production base in Xinjiang Uygur Autonomous Region by
investing CNY750 million, all of which have greatly enhanced the enthusiasm of farmers to plant cotton.
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Viscose prices are heavily falling in China, as a result of a low level in demand and a new reduction in raw material costs. Filament prices are
especially under pressure these days as inventories are surging in absence of demand. Staple fiber prices are still 20% above their level in the same
period last year.
India produces about 28 crores of mulberry silkworm eggs per year. This production is met by three agencies namely, Private Licensed Silkworm
Seed Producers (LSPs), State Departments of Sericulture (DOSS) and the National Silkworm Seed organisation grainages under the Central Silk
Board (CSB). The share of these agencies during 2006-07 was 74.0 %, 15.4 o and 10.6 respectively.
Preliminary data suggests that world textile fiber consumption increased by 4.8% to a record 67.7 million tonnes in 2007. World cotton consumption
expanded by 3.8% to a record 26.9 million tonnes in 2007, marking the ninth year of continuous expansion but the second year of a decreasing rate of
growth.
Wool prices are now more obviously falling in Australia, mainly due to a lack of demand from China while available quantities are also much larger
than previously anticipated. A rising Australian dollar is putting downward pressure on prices. Beijing is expected again closing down facilities
around Lake Tai in Jiangsu and Zhejiang, therefore depressing demand from China's wool factories.
Bangladeshi apparel exporters set an export target for local RMG worth $11 billion in 2008, but, the attainment of this target depends on the pressure
of gas at the industry level, said President of Bangladesh Textile Mills Association (BTMA) Abdul Hai Sarker.He said total investment in the
country's Primary Textile Sector (PTS) is $5.25 billion, while the number of textile factories is more than 4,000.
According to a recent survey by China Cotton Textile Association across 17 provinces, nearly half of the textile companies surveyed want to quit and
venture into other businesses and nearly 45% have started diverting export goods to the domestic market.
U.S. apparel imports declined in major categories in the first quarter of 2008. China lost market shares in nearly all categories under review while
imports from Vietnam were surging at the same time. Bangladesh lost ground with woven shirts while making strong progress with trousers. Central
America is back on the underwear market with also better results in man-made fiber categories.
EU's imports of polyester staple fibers steadily increased in the last three years. Shipments from Taiwan dramatically fell in 2007 after antidumping
duties had previously been set on Taiwanese fibers. South Korea benefited from a sharp rebound as a result while PSF imports were surging from
India.
U.S. apparel import prices generally raised in a large number of categories in the first two months of 2008, especially for wool and manmade fiber
products. China further raised its prices in most important categories like shirts and trousers, leaving the lower end of the market to a surging
Vietnam. India is more directly confronted with China although offering lower prices.
U.S. imports of cotton terry towels further rose in the last year with India surprisingly taking additional shares of the market. The final
domination of a surging China now looks less evident, even with a removal of the U.S. quota at the end of the year. Imports from Pakistan continued
slowly rising on the lower end of the market._
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GLOBAL MARKETING
Spun yarn prices are falling across the board in China, in line with a lack of demand from downward textile and clothing industries. Prices
were down about 200-600 yuan per ton depending on fibers. Spun viscose yarn prices were sharply down while cotton and polyester yarn prices less
significantly fell. Yarn prices may further decrease in the near term.
Polyester intermediate prices were more stable in the last week of April in Asia. A new surge in crude oil prices to fresh record levels offered
some support to spot markets for PX, PTA and MEG. May contract prices for paraxylene and glycol were also nominated at higher levels than in the
past month. Demand from textile industry in China is still depressed by yuan's appreciation; however, pessimism is again dominating the polyester
chain.
Conclusion
In August of 1947, a Islamic country was founded in south Asia with the name of Pakistan. Pakistan has its own and unique history whether you talk
about its culture, people, handicrafts, environments, government, weather, industry, or technology.
Pakistan economy is one of the growing economies in the world and attracting foreign investments from many sides of the world. But this growth is
increasing gradually.
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Pakistan industry has been faced a lot of problems and different types of ups and downs in its history. But from year 2000 to up till now, Pakistan
industry is facing more than these all problems. Textile industry is one of these industries which is facing these problems.
Textile industry is contributing to Pakistan’s GDP near about 8.65% and in total exports, it is contributing near about 62%. The overall worldwide
share in exports of textile products is near about 14% which is decreasing slowly but surely.
Right now Pakistan textile industry is facing a lot of problems which are directly related to government. The major problems are mentioned below.
􀀹 New government rules and regulations
􀀹 Increments in costs of raw materials
􀀹 Increasing cost of Gas and Petroleum
􀀹 Decrement in foreign investment
􀀹 Political instability
These are the major problems which are facing by the textile industry of Pakistan.
KSML (Kohinoor SPINNING Mills Limited) is one of the big giants and groups of textile in Pakistan textile industry. KSML was listed first time in
the market in 1987 in IPO. KSML was running under Maple leaf Cement Company till 2006. But in 2006 it separated from Maple Leaf and came
into existence with the name of KSML.
KSML fortunately has its own major divisions just like Dyeing, Weaving, Hosiery, Home Textile, and Genertek Division. KSML is capturing the
market share in local market near about 9.3% and it also exporting its fabrics and garments products to the foreign countries especially to USA and
European Countries.
As the Pakistan textile industry is facing many problems. KSML is also facing these problems and try defending against them. KSML also facing
number of internal problems such as employees turnover, old technology, having no monthly plan and budgets, every time late purchasing of raw
material and then of course late delivery and shipment. The main factor on which they are not paying too much attention is marketing of their textile
products. They don’t advertise about their products, whether you talk about the greige fabric, dyed fabric, garments, and home textile. They always
show dependency upon their limited foreign customers as well as on local customers and they don’t try to get and meet to new customers.
They have to advertise and meet new customers to improve their quality, and capturing the market share whether it is local or foreign market share.
They can use e-marketing concept to advertise over the internet.
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REFERENCE
www.aptma.org.pk/
www.saleemtex.com/
www.dallasnews.com/.../dws/bus/columnists/jlanders/stories
www.ptea.org/
www.alibaba.com/countrysearch/PK-suppliers/Textile_Fabric.html
www.dyedfabrics.com/
www.fibre2fashion.com/news/textile-news/pakistan/
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www.just-style.com/article.aspx?ID=101227
www.wikipedia,com
www.pide.org.pk/Research/Report180.
www.bilaterals.org/article.php3?id_article=9230
www.bharattextile.com/newsitems/2003963
www.gia.com.pk/
www.epb.gov.pk/
www.spyfu.com/Term.aspx?t=553759
www.bizeurope.com/businessdirectory/0000000463.htm
www.iptu.co.uk

International Islamic University Islamabad Faclty of Management Sciences Bba 17 A Asma.C

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INTERNATIONAL ISLAMIC UNIVERSITY ISLAMABAD

PROJECT TITLE: EXPANSION OF BUSSINESS.

SUPERVISED BY: SIR IMRAN QURESHI

TOOL USED: MS WORD

OPERATING SYSTEM: WINDOWS 2007/XP

Signature of teacher: ______________

New Constitution in 2008.................................................................................14

COUNTRIES CONSIDERED FOR

GLOBAL MARKETING std

REASONs FOR SELECTION

New Constitution in 2008

PROMOTION OF INFORMATION AND COMMUNICATION TECHNOLOGY IN TURKMENISTAN PICTT

Turkmenistan Culture and Language

Iran’s Fast Scientific Advancements

GDP (purchasing power parity)

$32.52 billion (2009 est.)

GDP (official exchange rate):

$27.28 billion (2009 EST)

GDP - real growth rate:

6.1% (2009 est.)

GDP - per capita (PPP):

$6,700 (2009 est.)

GDP - composition by sector:

2.3 million (2008 est.)

Labor force - by occupation:

60% (2004 est.)

Population below poverty line:

30% (2004 est.)

Household income or consumption by percentage share:

lowest 10%: 2.6%

Distribution of family income -

revenues: $1.459 billion

Inflation rate (consumer prices):

10% (2009 est.)

Stock of narrow money:

$469.5 million (31 December 2009 est.)

Cotton, grain; livestock

Natural gas, oil, petroleum products, textiles, food processing

15.5 billion kWh (2009 est.)

13 billion kWh (2009 est.)

2.5 billion kWh (2009 est.)

0 kWh (2009 est.)

197,700 bbl/day (2009 est.)

120,000 bbl/day (2009 est.)

38,360 bbl/day (2009 est.)

0 bbl/day (2009 est.)

Oil - proved reserves:

600 million bbl (1 January 2010 est.)

Natural gas - production:

34 billion cu m (2009 est.)

Natural gas - consumption:

20 billion cu m (2009 est.)

Natural gas - exports:

14 billion cu m (2009 est.)

Natural gas - imports:

Natural gas - proved reserves:

7.504 trillion cu m (1 January 2010 est.)

Current account balance:

$1.065 billion (2009 est.)

$6.737 billion (2009 est.)

gas, crude oil, petrochemicals, textiles, cotton fiber