Swiss Review


Message by Mr. Farhat Ali, President, Swiss Business Council

The economy of Switzerland is one of the world's most stable economies. The Swiss policy of long-term monetary security and political stability has made Switzerland a safe haven for investors, creating an economy that is increasingly dependent on a steady tide of foreign investments.

The country's small size and high labor specialization in industry and trade are the keys to its economic livelihood and success. Switzerland has achieved one of the highest per capita incomes in the world with low unemployment rates and a balanced budget. The service sector has also come to play a significant economic role. The economy of Switzerland ranks first in the world in 2015.

With the most liberal and competitive economies, Switzerland gained economic importance in the world. Switzerland stands among the top 20 states in the world family of 190 nations. In certain sectors, Switzerland competes with some of the European and global leaders.

Table 1: Exports of Swiss textile machinery

Year

CHF Million
2009 876.2
2010 1,317.8
2011 1,476.2
2012 1,071.1
2013 1,229.3
2014 1,339.3
2015 1,064.3
2016 685.1

 Source: Swissmem.

The Swiss foreign trade policy is liberal. There are no quotas, no restrictions. The buying capacity of an average Swiss is considerable because of the high per capita income. Nevertheless, Switzerland, with its small population, offers a limited market. To add to its limitations, a Swiss customer is quality-conscious and unless goods meet the high standard he demands they remain unacceptable in the market.

Switzerland one of the largest producers of textile machinery, is recognized worldwide for its outstanding quality and innovative products in textile machines. The country plays a leading role in textile machinery world with an estimated global market share of 33%, employing some 320,000 people, the MEM industries are by far the largest industrial employer in Switzerland and, with exports of around CHF 63 billion, account for 30% of total Swiss exports.

Table 2: Exports of Swiss textile machinery to Pakistan
Year Exports
Mio. EUR
 Exports
 ±EUR%
2009 11.4 -48.8%
2010 22.3 +92.5%
2011 19.8 -11.4%
2012 15.9 -19.6%
2013 15.3 -3.5%
2014 30.3 +97.6%
2015 37.3 +22.9%
2016 24.4 -34.5%

           Source: State Bank of Pakistan, Annual Report.

Today, Switzerland is the leading manufacturer of textile machinery all over the world and the major players themselves consider its outstanding quality and innovative potential.

Swiss subsidiaries in India, China, and other Asian countries became very important for Swiss textile machine manufacturers, taking them inside the world’s leading textile-producing regions.

 Import of textile machinery from Switzerland to Pakistan decreased from CHF 37.3 million in 2015 to CHF 24.4 million in 2016, thus showing a decline of 34%. Table-2.

 

 
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