Emerging EVs, investment in infrastructure and the role of local manufacturers in reducing fossil fuel reliance The auto sector is transforming towards reduced dependency on fossil fuels, which is especially important in countries where petroleum fuel is imported. Considering Pakistan’s current energy landscape, there are challenges in introducing battery electric vehicles (BEVs), as there is heavy reliance on petroleum fuel, which hinders the immediate adoption of BEVs. Despite these challenges, 34 licences have been obtained by two to three wheeler manufacturers since 2019 whereas in the four wheeler category, following companies have announced their entry through launching of different variants.…
Author: Ahsan Nisar
* From research to reality: 100 nations explore CBDCs, setting the stage for a digital financial future Digital currency has the potential to completely change the way a society thinks about money. Thousands of currencies (BTC, ETH) exist in electronic form that have led central banks to ponder over how they might work. Most countries’ financial system is already dominated by electronic form of currencies and not digital currencies, physical form being the sole difference between the two. A digital currency can only be exchanged through digital means unlike an ATM which stores the records electronically but dispenses cash in…
NEOM’s zero-carbon city, NESPAK’s new role, and investments enhance bilateral relations For decades, Pakistan and Saudi Arabia have maintained strong defence, diplomatic, and trade ties, which were further strengthened two years ago with the establishment of the Saudi-Pakistan Supreme Coordination Council to provide strategic direction to their relationship. Saudi Arabia, home to over 2.7 million Pakistani expatriates, has been a key source of remittances and oil supply for Pakistan. The Kingdom has long been influential within the Muslim world, but under the leadership of Crown Prince and Prime Minister Mohammad bin Salman, its global standing has significantly risen. His ambitious…
While many multinational companies are planning to exit the Pakistani market, citing internet disruptions, the investment climate remains a blend of both entries and exits. On a positive note, sectors such as mining, automotive, and electric vehicles (EV) are showing promising developments, as detailed below: Weir Group awarded $69m contract in Reko Diq project The Weir Group PLC (Weir), a global mining technology leader, has been awarded a £53 million ($69 million) contract to provide industry-leading energy-efficient, sustainable solutions to the Reko Diq copper-gold project, a 50% owned greenfield development by Barrick Gold Corporation (Barrick). The tier one copper project…
During the last 30 years, the one sector that has brought Pakistan to the brink of default is the power sector. It all began with the 1994 power policy when Independent Power Producers (IPPs) were invited to invest in the energy sector of Pakistan at a 17% rate of return in dollar terms. At that time, it was touted as a solution to end the energy crisis of Pakistan and the rupee-dollar parity also supported the decision. Initially, some Chinese companies showed some interest under the CPEC umbrella. Later on, cartel owners of sugar mills, cement, fertilizers, steel mills, textile,…
From urban privilege to rural neglect and with public and private sectors out of balance, access to quality care remains elusive Pakistan ranks 124th among 195 countries in terms of the Healthcare Access and Quality Index. Despite an elaborate and extensive health infrastructure, healthcare delivery suffers from some key issues like the high population growth, uneven distribution of health professionals, deficient workforce, insufficient funding and limited access to quality health care services. The National Health Vision 2025 aims at universal access to quality essential health services and ensuring financial protection, focusing on vulnerable and delivered through resilient and responsive health systems. In…
Effective policy should rely more on alternative energy and less on fossil fuels Energy has got significant political concerns for the stability of a country. Despite the huge indigenous potential and geographical significance, Pakistan showed little interest in exploiting its own energy resources to minimise the energy crisis. There is a huge gap between the demand and supply of energy that has increased the use of imported oil for energy generation in Pakistan. Access to energy is the most important issue of a state constituting an important strategic aspect. Industrial growth has been depleting the resources of energy and every…
Budget 2024-25 is a continuation of tight fiscal policy Evaluating the balance between optimism and overlooked reforms for sustainable growth Highlights from the 2024-25 budget: GDP-deficit Targets 3.6% economic growth up from 2.38% Fiscal deficit seen at 6.9% of GDP Expenditure Total spending is estimated to be Rs18.9 trillion ($67.84 billion) Expects debt servicing of Rs9.8 trillion Defense expenditure of Rs2.1 trillion expected Pension payments seen at Rs1 trillion Total subsidies projected at Rs1.4 trillion Projects 27% increase in cash handouts to Rs600 billion under BISP Revenue Target total tax revenue of Rs13 trillion Targets total non-tax revenue of Rs3.5…
R&D helps overcome challenges through public-private partnership For the past half century, we have been hearing that agriculture is the mainstay of Pakistani economy or Pakistan is an agricultural country. Although, over the years, direct contribution of agriculture has declined, it is still the second largest sector after services as it contributes almost 23 per cent to the GDP and employs over one-third of our labour force. When we talk about agriculture, most people think that it comprises of crops alone, however, livestock (poultry) is also included in this sector through which 70% of foreign exchange is earned on export…
Challenges and solutions in balancing solar potential and power sector viability The businessmen community has been stressing for quite some time now to bring down the policy rate if consumer confidence and economic activity is to pick up but so far State Bank of Pakistan (SBP) is maintaining its ‘wait and watch’ policy to see if downward spiraling of prices is sustainable or not. The announcement of annual budget for the year 2024-25 is just around the corner and if the present government manages to walk the talk, then we may expect SBP to bring down the policy rate in…
Reshaping Pakistan’s insurance frontier Bancasslurance empowering families, expanding reach, and redefining financial security NBP introduces a range of meticulously crafted insurance products designed to safeguarding, savings and investment needs Interview with Mr. Adnan Ahmed – Wing Head Bancassurance & Wealth Management, NBP Profile Adnan Ahmed is an MBA and M.Phil. in Human Resource Management (HRM). He serves as a visiting faculty member in universities. He joined National Bank of Pakistan (NBP) as an officer in 1996 and has more than 28 years diversified experience. He served as a Branch Manager and remained on key posts at controlling and head officer.…
Pakistan faces challenges in balancing its energy needs, diplomatic ties and external pressures Global conflicts have a direct bearing on international oil price movements. As if the Russia-Ukraine war was not enough, the oil market has now been embroiled in a Middle Eastern crisis (Iran-Israel standoff) which may bring international oil prices to over $100 a barrel. This does not have a good bearing on Pakistan as it may unleash a new round of inflation thus bringing misery for the common people already feeling the heat. On one hand, Pakistan is trying to have a $1.2 billion tranche approved from…
Establishing a workable Islamic pricing benchmark is indeed crucial In 2022, the Federal Shariah Court of Pakistan directed the government to adopt Shariah-compliant modes while borrowing from domestic or foreign sources and set a five-year timeline to convert the economy into an equitable asset-based, risk-sharing and interest-free economy by 2027. State Bank of Pakistan’s strategic plans for 2023-2028 also include transforming existing conventional banks into Islamic banks by bringing the total share of Islamic banks in assets and deposits up to 30% by 2025. These developments are to be understood in the backdrop of future prospects of interest-free banking in…
Pakistan’s economy is on a gradual but promising path of recovery. The country has shown remarkable resilience during pandemic era and is trying to overcome its fiscal, monetary, external and industrial sector challenges despite the global economic recession. Pakistan has successfully reduced its fiscal deficit, increased its foreign exchange reserves, stabilised its currency, and boosted its exports and remittances. Moreover, Pakistan has implemented several structural reforms and policy measures to enhance its economic competitiveness, governance, and social welfare that have earned the praise of international financial institutions like IMF, WB and ADB. One such initiative is the establishment of the…
Pakistan is one of the most charitable countries in the world, and following organisations are a testament to the generosity of its citizens. Whether they are providing education, healthcare, or disaster relief, these institutions are working hard to improve the lives of those in need. Akhuwat Foundation It is a non-profit company established in 2001 and registered with SECP. Akhuwat aims to alleviate poverty by creating a bond of solidarity between the affluent and the marginalised. Their goal is to develop and sustain a social system based on mutual support. They extend a helping hand to the poverty-stricken by providing…
 WAFI Energy to own 77.42pc in Shell Pakistan, Saudi Aramco to take 40pc stake in Gas & Oil Pakistan Limited Papara plans to buy out 100pc of EMI SadaPay Wafi Energy to buy Shell Pakistan WAFI Energy LLC, a prominent company in the fuel station sector in Saudi Arabia, has expressed its intent to acquire 77.42 per cent ownership in Shell Pakistan Limited. WAFI Energy is a rapidly expanding network of retail gas stations and holds the exclusive license for the Shell Retail Network (gas stations) in Saudi Arabia. WAFI Energy was established in 2012 with an authorised and paid-up…
In Pakistan, digital banking in its nascent form started through the promulgation of the Electronic Transaction Ordinance 2002 after which banks started dispensing financial services through POS machines and ATMs. After that, electronic payments were institutionalised through PSEFT Act 2007 and since then there has been no looking back. Some of the important milestones achieved in this regard are as under in chronological order: Introduction of PRISM or RTGS in 2008 Rules for PSOs and PSPs in 2012 Launch of EMIs and e-wallets in 2019 Launch of RAAST payment gateway in 2021 Rules for opening digital accounts in 2022 Licensing…
Despite Pakistan’s precarious economic situation, entrepreneurial activity has been on a rise which is a welcome sign, although the true potential is yet to be unleashed. Over the years, numerous startups have managed to raise funding while some experienced failure and have shut down operations (Airlift, Yayvo, Patari) as operating in a market as volatile as Pakistan is certainly no easy task. There are numerous reasons behind startup failure in Pakistan but some of them are as under: Lack of market research: Most startup owners have a good business idea but do not back it up with research. As a result,…
Navigating trends, technology and start-up collaborations the new quest for industry efficiency Interview with Mr. Aashir Hussain— CEO, Seabird Logistics Pakistan PAGE: Tell us something about yourself? Aashir Hussain: I am the CEO of Seabird Logistics (Pvt) Limited since August 2022 and prior to this I have over 11 years of experience at Seagull Shipping and Logistics (Pvt) Limited in various export/import related assignments. PAGE: How do you view the state of Pakistan’s shipping and logistics industry and its current challenges and opportunities? Aashir Hussain: The term logistics and transportation enunciates the entire network starting with the planning, implementing transfer and the…
 Must overcome the human capital crisis, fiscal imbalances and energy inefficiencies Pakistan’s economy has shown some resilience in the face of the worst poly crises resulting from poor policy choices, combined with a series of recent shocks in the form of pandemic/natural disasters and adverse global conditions causing a slow-down in growth, increase in poverty and even brought the country to the brink of default. Moreover, human development outcomes (health, education) remain at a low level while per capita income growth has been declining in the face of low productivity and high fertility. These challenges call for stringent reforms across…
2023 was a tumultuous year, with Pakistan experiencing its share of highs and lows. A quick recap of some of the main economic events is as under: January Pakistan’s exports decreased by 15.4% to $2.2 billion in January 2023 from $2.61 billion in the same month the previous year as a result of economic and political unrest. Pakistan’s textile exports witnessed a decline of 12% year-on-year to $1.36 billion in January 2023. The total debt of the central government surged to Rs54.94 trillion in January 2023, compared to Rs47.8 trillion in June 2022, witnessing an increase of Rs7.15trillion or 15%…
 Pakistan set to join BRICS to boost its trade influence around the world Pakistan has formally requested to join the BRICS group, an important group of developing countries. The timing of this move could not have been better considering the fact that the US is losing ground as a dominant power, especially after the Afghan war, then a policy disappointment in Ukraine, and recently in the Middle East, where its strategies and policies have met with utter failure. Pakistan, sensing the opportunity, is trying to catch this chance to engage more actively with emerging global power centers. The request for BRICS membership…
Review of Pakistan’s Digital Payments trends in FY23 The latest trends in digital payments is perhaps one of the brightest spots in Pakistan among the gloom and doom of inflation and fiscal deficit. This is one area where we have seen high double to even triple digit growth over the last few years as evidenced by State Bank’s Payment Systems Review Report. In FY23, 10.4% of total throughput and 42.2% of transactions in the country were digitized. For context, the corresponding proportions stood at 1.5% and 11.5%, respectively back in June 2019. In order to understand the ecosystem better, we…
New government must take tough structural reforms for optimal solution There is a prevalent misconception that holding of national elections (whenever they are held) is the panacea to all our economic woes and all challenges will automatically resolve once the incumbent government takes over. The main issue is that how the new government plans to address the poly-crises it is going to inherit as none of the political parties appear equipped to resolve the economic issues plaguing Pakistan. Concerns have also arisen about the capability and competence of state institutes in effectively managing these challenges. While it may be argued…
Land consolidation and seed technology could increase agricultural productivity in Pakistan The agriculture sector in Pakistan has significant potential for foreign direct investment (FDI) and various factors such as food security, availability of uncultivated land spanning millions of acres, cost-effective workforce and Pakistan’s conducive agro-climatic conditions to grow a wide range of crops make a strong case for promoting FDI in the agriculture sector. Such investments in agricultural and industrial production could lead to job creation, increased exports and generation of additional tax revenues. Corporate farming is one area that could offer viable investment prospects but to be able to…
Pakistan’s large copper reserves help attract FDI in different projects Govt should strive to promote electric vehicles in future development plans In view of climate change issues and the demand for reducing carbon footprint, one of the biggest challenge that companies are facing these days is whether supply chains will be able to keep up amid the growing demand for electric vehicles and consumer appliances. Today, companies need to review critical areas to address concerns about supply chain disruptions along resulting shortages. A major example is that of semiconductor industry has a flourishing global supply chain status but in the…
From international relations perspective, alliances and coalitions between nations play a direct role in shaping up global politics and relationship between Pakistan and Saudi Arabia is no different. Saudi Arabia has always held an influential position in the Muslim world. But since Crown Prince and Prime Minister, Mohammad bin Salman Al Saud took over the Kingdom, the country’s prominence in the international domain has increased many folds because of his vision and ambition. He has introduced many structural reforms to meet his Vision 2030 and is revolutionising Saudi Arabia’s socioeconomic landscape. The International Monetary Fund (IMF) has stated that Saudi…
Hyperinflation going bad to worse Pakistan is experiencing its worst economic crisis in decades and a storm is slowly brewing. Recent economic changes have led to record-high interest rates and inflation. Amid bloated electricity bills and backbreaking inflation, the most recent fuel price increase by the caretaker government has made matters worse for Pakistanis and could literally be termed as ‘adding fuel to the fire’. Pakistan’s historically high inflation is hurting the poor and causing unprecedented challenges for middle to low-income groups. Inflation in Pakistan increased to 38 per cent in August from 36.4 per cent in July as a…
Superior public-private partnerships needed for better health coverage in Pakistan The healthcare system in Pakistan comprises a three-tier system of primary, secondary, and tertiary levels. The public and private sectors work together to provide the best possible care, but the healthcare burden, in general, has led to the failure of the deliverance of quality healthcare, more significantly in the government setup, which, in the last 10 years, has spent a meager 0.5-0.8% of gross domestic product (GDP) on healthcare against recommended 6% of the GDP by the World Health Organisation (WHO). In recent times, however, Pakistan has been identifying these…
In recent years, several sectors of Pakistan’s economy have been showing signs of growth and nourishment despite overall economic challenges. These sectors are contributing to economic development, job creation, and increased revenues. Real Estate New tax rates have been notified on real estate transactions. This along with an annual 1 percent tax will reduce the parking of black money in real estate. Next, we need to bring the FBR rate to market value and regularise the business of files. Remittances After many years, in FY23 Pakistan witnessed a decline in remittances. Now the government of Pakistan is trying to increase…
It is generally believed that Islamic banking was re-launched to bring the large unbanked population within the folds of the microfinance bank industry. Since its re-launch, the Islamic banking industry is  still concentrated in urban, semi-urban areas where financial services have greater availability while a significant percentage of faith-sensitive voluntary exclusion signifies huge potential demand for Islamic banking in the country. The State Bank of Pakistan (SBP) and the industry need to collaborate further to expand their network to regions where there is no or limited availability of financial services particularly in the areas of SMEs, agriculture and microfinance. Microfinance cannot…
The context of the budget for the year 2023-24 was that of a country going through a poly-crisis barely averting an external default, and squeezed by stagflation. At a time when there was a dire need to reduce the fiscal deficit and bring inflation under control, the budget has effectively been designed to attain moderate-to-low growth, largely funded by debt. However, a responsible growth strategy would have curtailed fiscal deficit through the expansion of the tax net, while incentivising private sector investment to drive growth and job creation. With no new taxes and a marked increase in the salaries of…
Pakistan’s Agriculture sector Potential: Opportunities Amid. Challenges Pakistan has one of the world’s most impressive agricultural systems but it has not used it well. Agriculture could become the main driver of economic growth and poverty alleviation but for that to happen policymakers at the federal level as well as in the provinces will have to appreciate the sector’s potential as well devise public policies to realize it. The agriculture sector is still the dominant sector of the economy with a profound impact on the rural economy. Its forward and backward linkages particularly with the industrial sector, give it a central…
Pakistan is the 5th most populous country in the world. Resultantly, the transport situation especially in metropolitan cities is a grave issue. Ride-sharing is a novel concept that needs to be regulated by the government if these issues are to be addressed. Presently, there are two factors at play in the transport sector. Riding the digital wave, more and more youngsters are opting for “ride-sharing apps” (Careem, Bykea & Indrive) due to rising fuel costs and unemployment. On the other hand, the salaried class could not opt for car financing through banks because of high-interest rates. This is one of…
E-commerce businesses begin to feel the heat of recession in Pakistan In the last couple of years, the e-commerce sector in Pakistan has witnessed tremendous growth with the market size reaching $6.4 billion in 2023. The growth is expected to continue in coming years based on a number of factors such as internet penetration, expanding mobile connectivity, a rising population of tech-savvy customers and a growing number of e-commerce businesses due to low barriers to entry (1,180 companies registered during 2022). This, coupled with investments made in the sectors by giants like Daraz, Khaadi and Gul Ahmed, has led to…
When a financial product uses the word Islamic in its name, it must be subject to critical interrogation needed to sort the wheat from the chaff. Of late, there are a lot of financial products in the market that claim to be Islamic but people have no other option than to rely on Shariah Advisory Board for the same. One such area is cryptocurrencies where scholars are divided into whether they are Halal or Haram. There are some principles that consider digital currencies halal while others consider it haram. So far it has been demonstrated that there are few perspectives…
NBP strongly committed in human investment and reaching SDG Goals Interview with Ms. Sabeen Gul – Wing Head CSR at NBP Profile Ms. Sabeen Gul is an experienced multi-disciplinary professional in finance, economics, digital finance systems, project management, stakeholders’ engagement, CSR and Sustainable Development having more than 19 years of experience with the National Bank of Pakistan. At present she is working as a Wing Head in Corporate Social Responsibility & Sustainable Development. She is also voluntarily working for different community development programs. She is foreign qualified, holds Masters in International Banking & Finance from University of Southampton, UK. She…
In recent times, the country’s social and economic disparity has grown to unprecedented levels. On one hand, there is dangerously high food inflation and on the other hand, there is rising unemployment. The term ‘middle class’ is fast eroding due to the rise in poverty levels and fall in real incomes, while lower segments of society are trying badly to make ends meet. The irony is that consumption of luxury items by the elite class is on the rise which is creating a civil war-like situation and the most worrying fact is that there seems to be no end to…
Sports Industry Pakistan is one of the top manufacturers and exporters of sports goods in the world. Sialkot is one of the most modern and economically booming cities of Pakistan, in manufacturing establishment, employment and export sectors of the industry. There is a huge potential for foreign investment in this sector, as it is clear that many multinationals have been outsourcing from Pakistan. Pakistan’s sports goods have their identity in the export market. Major multinationals like Nike and Adidas are outsourcing from Pakistan. Pakistani exports of sports goods declined half a decade ago due to non-tariff barriers like ISO-9000, environmental…
Aviation industry Pakistan has an oligopolistic airline industry and one of important Pakistan’s top brand sectors, where Serene Air, Air Blue & Air Sial, as privately-owned airlines, compete against each other and the national carrier PIA (Pakistan International Airlines). Last year, another airline company entered the domestic market Fly Jinnah. There is plenty of room to grow when it comes to the total market share of low-cost carriers in Pakistan. Their share is much smaller than some of Pakistan’s neighboring countries like India. Pakistani flag carrier Pakistan International Airlines has welcomed the third Airbus A320 to its fleet last year. PIA has…
The dynamics of the oil and gas sector have changed and a new paradigm shift in gas infrastructure and pricing regime is imperative. Pakistan is a promising market for oil and gas exploration. In view of the depletion of local gas reserves and increasing imported gas in the system, it is of immense national importance to restructure the gas sector with an overall aim of making the sector efficient, dynamic and vibrant in keeping with best international industry practices. For this purpose, a future strategy should be carved out through a highly participatory consultative process by taking all stakeholders on…
Pakistan Super League (PSL) was launched by Pakistan Cricket Board in 2016 and since then it has become the second most-watched T20 league after Indian Premier League (IPL). This is an achievement in itself as PSL is the youngest among major T20 leagues. Initially, all the matches were held in Dubai due to security concerns by some players but in 2020, despite the pandemic, PSL moved to Pakistan which has increased its popularity manifolds. The 7th edition held last year was the most successful in terms of revenue and viewers. This has been made possible due to an increase in…
In today’s world, companies are facing many problems with a new role, which is to fulfill the demands of the present generation in a socially responsible way. Organizations must take responsibility for the ways they operate because their operations impact societies and the natural environment. Corporate Social Responsibility has become an important part of planning to get and sustain a competitive advantage in globally competitive companies. Companies can gain great benefits from participating and these benefits are the reasons for their engagement in Corporate Social Responsibility. CSR affects the financial performance of the firms. In today’s global world, organizations have…
In its 75 years of existence, the year 2022 was the toughest one for Pakistan as its economy lurched from one crisis to another thus bringing it to an unprecedented crossroads. The fight for power and control has created turmoil in the national economy to the extent that it is on verge of default while the government denies the fact, and keeps claiming that it has averted the situation. Even a change in military command could not bring the desired results. Natural catastrophes in the form of floods further added to the misery. It is with this baggage that Pakistan…
Pakistan is receiving bad predictions from the experts over the economic decline to continue. Pakistan’s economic outlook for the fiscal year 2023 has deteriorated following heavy flooding as the economy was already reeling from the effects of macroeconomic and fiscal instability. Flood disruptions and damages are expected to slow real GDP growth in combination with tight monetary stances, high inflation and an unconducive global environment. The flooding is expected to have spillover effects on the services, textile, food processing and transportation industries. The fiscal year 2023 forecast for Pakistan reflects a weaker currency, higher domestic energy prices, crop and livestock…
With the emergence of e-commerce and rising digital literacy among consumers, the global logistics industry has been changing significantly in recent years. Factors such as rising disposable incomes, dual-income households, and constant urbanization have encouraged consumers across both developed and emerging economies to follow upcoming logistics trends. This has further resulted in the rapid development of retail channels requiring efficient inventory management and warehousing solutions for helping customers to make informed purchase decisions. Logistics companies are facing an era of unprecedented change as digitization takes hold and customer expectations evolve. New technologies are enabling greater efficiency and more collaborative operating…
The insurance industry in Pakistan is poised for rapid growth leading to greater demand for insurance products and higher rates of affordability among the enormous potential consumer market. However, structural challenges will continue to hamper the market from reaching its full potential. Poverty rates are high, as are informal employment rates, and this lessens the demand for retirement and other life products. The non-life sector remains heavily reliant upon basic lines and in a fragmented and disjointed marketplace, there is downward pressure on pricing and limited profit margins. Moving forward the market would benefit from foreign expertise and investment, though…
Banking in 2023 is going to be greatly impacted by digitization. Digital tools and services are already central to effective financial management in the modern age. From budget tracking to online transactions and live chat, digital banking has evolved rapidly and is continuing to answer the changing needs of consumers worldwide. Digital banking tools have a good following among the emerging middle-class. There are a lot of financial services that work particularly well in the online/mobile environment, particularly those that enable easy and convenient access to savings. These days, not many people want to queue in a branch to make…
Microfinance is just one tool in the war against poverty. For microfinance to be successful at poverty reduction, it must be used in conjunction with education, health, and other social interventions. Microfinance becomes a multiplier force in such a scenario. Not only does it reduce poverty, but it also creates an even playing field by bringing the marginalized population into the banking net. The reality is that this customer base pays an exorbitant price for the services that the banked population uses. The microfinance industry has been successful in opening mobile accounts but has yet to make efforts to keep…
Pakistan is among the few developing countries which are experiencing adverse effects of climate change due to excessive use of fossil fuels (oil, gas, coal) in the last few decades which is resulting in intense heat waves and torrential rainfalls causing severe droughts and floods. This erratic change has direct implications for the production ecosystem of the agriculture sector which, in turn, reflects on the food security situation in Pakistan as the balance between the level of food production and availability of stocks is disturbed. During recent floods, millions of acres of wheat, rice, and corn growing areas got submerged…
The latest UN Intergovernmental Panel on Climate Change (IPCC) report makes it overwhelmingly clear that there is a dire need to invest in renewables and switch away from fossil fuels much faster to secure a safe climate future. Solar and wind power can limit global warming to 1.5C, new report reveals. Solar-powered electronics are fast becoming an everyday part of our lives. For years, solar energy is a variable renewable because it only works when the sun shines. But recent research to overcome this flaw is already being developed at a fast pace. Scientists at a Swedish university have created…
On April 23, 2016, Pakistan signed the Paris climate agreement, joining 174 other nations in a commitment to combat climate change. The Paris Agreement is an agreement among 175 countries within the UN Framework Convention on Climate Change (UNFCCC) dealing with CO2 emissions reduction. The agreement went into effect on November 4, 2016. The contribution that each individual country will make to combat climate change should be reported every five years and are to be registered by the UNFCCC Council. Pakistan currently ranks 135th in the list of global emitters of carbon on a per capita basis, accounting for less than 1 percent of total…
The evolution of leasing in Pakistan particularly in the formal sector dates back to June 1980 when, according to a Report of the Council of Islamic Ideology, the concept of leasing was recognized as one of the financial services under the Islamic financial system, which was later introduced in the country in 1985. In June 1984, the government directed the National Development Finance Corporation (NDFC), a leading financial institution in public sector, to promote the first leasing company in Pakistan. As such, National Development Leasing Corporation (NDLC) was established as the first leasing company in the private sector as a…
AlifLaila’s basic objective is to develop innovative (and integrated) solutions to address the structural causes of human under-development in Pakistan. This objective is part of a broader approach to fighting against all forms of ignorance and narrow-mindedness. By establishing and reinforcing libraries, training librarians, and distributing books, the AlifLaila Book Bus Society actively promotes access to information and knowledge throughout Pakistan. Brief overview AlifLaila Book Bus Society (ALBBS) traces its origin from the time when in 1978 an American couple – Dr. Nita and Dr. Richard Baker – working at the American School in Lahore, came up with the idea to harness the…
An interview with the Rector of MITE – Dr. Huma Baqai MiTE is a project of The Millennium Trust for Education and Entrepreneurship (TMTEE) built on 3Es principle (Empathy, Entrepreneurship and Equity). The founders of the trust TMTEE also have contributed towards building and creating the legacy of The Roots Millennium Schools Pakistan, Pakistan’s third-largest educational group in Pakistan for K-12 education. They also are responsible and proud founders of The Millennium Universal College, the Transnational Higher Education Wing of The Millennium Education group. The team of passionate academicians is spearheading MiTE with the same objective of delivering quality teaching and learning reflective of the legacy…
Mass transit turned delivery startup, Airlift, has announced shutting down its operations in Pakistan since 13th July 2022. Airlift was a perfect platform and a few months ago they generated record high revenue but now they are closed. When it secured a Series B of US$85 million last year, Airlift looked to be on top of the world, an aspiration in a startup ecosystem that had just begun to thrive. In three years’ time, it had raised a total funding of $110m. So where exactly did they go wrong? As with all setbacks, there are some hard lessons to be…
As financial inclusion is picking up pace in Pakistan, so are various scams and scandals. Of late, many exploitative lending apps have surfaced, luring people with misleading terms. One such scandal which comes under the category of extortion is being reported for “Barwaqt” app that is offering instant credit of up to PKR 25,000 in less than half an hour to clients. The surprising fact is that the entity is registered with Securities and Exchange Commission of Pakistan (SECP) but is involved in many shady deals. Its ownership is also dubious as there is clear evidence that it is being…
Solar energy Pakistan has a population of over 225 million. Approximately 88 percent of the population has access to electricity while 12 percent remains un-electrified. The annual per capita electricity consumption in Pakistan is around 550 kWh as compared with the world average of 3,081 kWh per capita. The energy sector has pivotal importance for the people as well as the industries and trade in the country. At the moment fuel prices are skyrocketing which has made thermal energy expensive. Pakistan targets an on-grid Alternative Renewable Energy (ARE) generation mix of 20 percent by 2025 and 30 percent by 2030.…
Sustaining the growth momentum, ensuring fiscal consolidation, managing balance of payments and ensuring debt sustainability are some of the philosophies on which the budget should be based. The budget situation does not seem to get better and the recent governments have certainly not attempted to reduce debt or develop a coherent strategy to improve the overall budgetary situation. Pakistan’s budget is out of alignment as there exist some structural imbalances. The government need to start taking action to address the structural issues within our national budget and ensuring that the revenues and expenditure match. Efforts to reverse the current imbalances…
Pakistani startups raised $174 million in disclosed funding across 17 deals in the first quarter of 2022. Compared to the first quarter of 2021, it’s an increase of 776% from $20 million. And, compared to the fourth quarter of 2021, it is an increase of 140% from $71 million. During the first three months of the year, Pakistani startups raised half of the total funding raised in 2021. It was also the best quarter for Pakistani startups ever. Previously, 18 deals totaling $172 million were recorded in Q3 of 2021. Some of the best startups that have raised funding during…
Life insurance is a key savings and investment vehicle available to public at large and Pakistan’s low saving and investment rate is a major reason for its underdevelopment. Pakistan is behind regional peers and world average in the critical indicator of investment to GDP ratio. While Pakistan’s investment to GDP ratio stands at less than 15% of GDP, Sri Lanka, Bangladesh and India’s investment to GDP ratio is 30% and above. In 2019, Sindh Revenue Board has made individual life insurance subject to 3% sales tax whereas group life insurance is subject to normal tax rate at 13% in Sindh.…
Islamic banking’s market share likely to move up in Pakistan Global outlook Islamic financing emerged 50 years ago, in countries with large Muslim populations who were keen to ensure their sources of funding were governed by the requirements of Shariah and the principles of Islam. In 2019, Islamic finance assets amounted to US$2.88 trillion, the highest recorded growth for the industry since the global financial crisis. The prospects look positive: by 2024, this is set to rise to US$3.69 trillion. While Muslim countries have turned to Shariah financing to fund their thirst for capital, another underlying reason for its popularity…
Corporate social responsibility (CSR) has become much popular in the last few years. A large number of companies issue reports on the Corporate Social Responsibility nowadays. Corporate Social Responsibility has become an important part of planning to get and sustain the competitive advantage in the globally competitive companies. Companies can gain great benefits from participating in CSR and that these benefits are the reasons for their engagement in Corporate Social Responsibility. Corporate Social Responsibility also affects the financial performance of the firms. In today’s global world, organizations have many challenges to operate and earn profits. People have more knowledge about…
Cyber security is now a critical function in organizations in the current era of online/digital business and communication. Hackers will remain on the winning side if the assets in organization are left with vulnerabilities that might eventually be exploited. In the ongoing time of COVID-19 waves, hackers are taking advantage of this confusion while attacking with ransomware and phishing at faster pace and this is very much anticipated to continue in 2022. It is not just the speed but variety of attacks that give hackers an edge over the opponents (defending teams at target organizations). Following are the top cyber…
When it comes to the health and vitality of the communities, affordable housing is the key. The need for quality, affordable homes is an important part of sustainable development goals of Pakistan. The poor management of the growth of housing cost in Pakistan has been affecting negatively in terms of finance. Therefore, reducing the effect of housing issues could be a potential benefit to both low and middle income households. The main challenge to obtain affordable housing in Pakistan is high interest rate and big gap between house prices and level of household income. Earlier on, housing sector has largely…
Whenever there is a major global technological change, the businesses that are quick to jump the bandwagon have the first mover advantage and banking industry is no exception. With the rise in online banking, the customer interaction has increased manifolds. Now payment of bills and transfer of money is possible digitally without being physically present at branches. Digital banking has therefore changed consumer preferences by providing frictionless and (near) real-time transactions. Some of the advantages that digital banks offer over conventional banks are: Convenience Agility Mobility Efficiency Transparency Accessibility Further, since digital banks have reduced overhead expenses due to lower…
In Pakistan, the health sector has been badly neglected and the policy makers have shown a callous lack of concern for educating the people and providing them with health care. People living in rural and remote areas mainly depend on primary health care facilities, like basic health unit and dispensary provided by the public sector. However, due to poor governance, lack of access and unequal resources, poor quality of health information management system, corruption in health system, lack of monitoring in health policy and health planning and lack of trained staff, the quality of life of the people has remained…
Country’s premier event facing financial and political challenges The new Chairman PCB is in turbo-mode to upgrade the infrastructure An interview with Mr. Aqeel Samar – Radio presenter and emerging commentator PAGE: Tell us something about yourself AQS: I started my media career as a Radio presenter and this passion still runs in the blood. Doing cricket commentary was always a larger than life dream as it is the best seat in the house. Back in 2006, when Muhammad Yousuf set a world record by scoring most runs in a calendar year, I requested the FM Radio producer to give me…
Aviation Industry The aerospace industry is searching for innovative results to boost its business in a sector that operates in a cut-throat competitive environment. Blockchain is a disruptive technology that has the potential to affect various stakeholders and replace current platforms. Most people associate blockchain with cryptocurrencies but it’s a cutting-edge technology that may optimize performance of aviation industry. At the most basic level, every blockchain is a digital ledger of transactions that take place on a peer-to-peer network with the ability to control access to data. The five core issues determining the adoption of blockchain by the industry are: Specific adoption…
In this article, sector specific and international trade hurdles will be discussed in detail: 2- Sector specific hurdles a) Agricultural taxation Agricultural taxation is prone to outdated political system which is mainly dependent upon the feudal system. Every government is afraid of losing the massive vote bank of farmers by aggressive taxation reforms in the agriculture sector. Interestingly, subsistence level farmers are unable to comprehend that they will be exempt in any system of progressive taxation and are thus easily exploited by the feudalism. The whole agricultural process is effectively informal i.e. from the supply of raw material to the…
The economy of Pakistan, like any other economy is of two types: 1) documented or formal economy and 2) undocumented or black economy. Documented economy connotes that the business as well as employment is registered with the relevant registration authorities, as well as taxation authorities. On the other hand, undocumented economy is not registered with the authorities and consists of the following two types: a) Legal businesses which may be unreported (for tax evasion) or unrecorded (due to practical difficulties in documentation) b) Illegal businesses activities which are restricted or banned by the state; for example, trading in alcohol in…
[box type=”shadow” align=”” class=”” width=””]Updated status on revival of Chenab Limited Recently, Chenab Group has announced revival of its business on 29-10-2021 after reversal of an earlier decision by Lahore High Court Lahore vide its order dated 13-07-2017 that pronounced the winding up of the Company in a petition filed by a small creditor of the company. The Court took into consideration Chenab’s excellent track record for the last 35 years and its great capacity to bounce back to pay all its financial obligations through normal course of business. The default made by the company in payment of debt was…
China, officially the People’s Republic of China, is the second largest economy in the world and the fastest growing trillion-dollar economy. With a GDP of $15 trillion plus in 2020, it makes up almost 20 per cent of the global economy. When compared on the basis of Purchasing Power Parity (PPP), China is the largest economy with a GDP of $27 trillion plus. At present, the size of China’s nominal GDP is lesser than that of the US but China is on the path to become a $20 trillion economy by 2024 superseding the US. Since 1949 till today, China…
Pakistan is a fairly young country by most standards. Conflicts, complications and historical political divisions have hindered its path to emerge as an influential and modern state. However, globalization along with various other economic factors have put the country in a strong position, most significantly due to its vibrant banking and finance sector. As the fifth most populous state, Pakistan is slowly and gradually becoming a significant player in South Asia. Its macro-economic indicators, however, tell a different story when one looks at its infrastructure, health, education and business environment. The slow pace of growth and development could be attributed…
With the rampant rise in E-commerce and explosion of mobile commerce, the economic playing field for women in Pakistan is changing rapidly and has a positive transformative impact on women entrepreneurs. Not challenging the culture barriers that sometimes require women to stay at home, e-commerce offers women in Pakistan the liberty to work from the comfort of their homes while expanding their online businesses and earning a livelihood. According to data from UN Women, currently only 45 per cent of women worldwide have access to the internet, while most mobile phones are in the hands of men. Moreover, women represent less…
Area-yield index insurance was first developed in Sweden in the early 1950s and has been enforced in India since 1979 and in the United States since 1993. There have been numerous attempts to establish crop insurance programmes in developing countries. Some of them have succeeded in laying the foundation for a sustainable risk management service. But there have also been failures. Most of such programs that did not prove durable were set up on the base of unrealistic prospects. Risk management is of pivotal importance in the investment and financing decisions of growers in developing countries and in transition economies. Agrarian…
Pakistan used to be one of the most often overlooked countries when it comes to fintech investments but now it is one of the countries with the most potential. The world’s fifth-most populous nation is seeing record money flow into its startups with more than $305 million this year, higher than the past six years combined. Similarly, ‘Buy Now, Pay Later’ (BNPL) model is also heating up around the globe since the start of the year. Following the hype and the scale witnessed globally, local startups have also started coming up with their own BNPL offerings. That includes QisstPay from…
There is a common saying that “cut your coat according to your cloth”. While this proverb gives a clear message to live within our available means, it also allows us to arrange a bigger piece of cloth to cut the coat according to the desired size. It is basically a call of an individual or a nation to go for i) exploiting extra resources to enjoy better living standards, ii) spend time in managing the existing resources or otherwise, and iii) start living beyond means by hook or by crook. Since the known resources are scarce with seemingly uneven distribution,…
While the economies of the world are expected to gather momentum as more and more people get vaccinated, one of the biggest cautions to consider is whether supply chains will be able to keep up with growing demand. Companies need to review critical areas to address concerns about disruptions to supply chains and shortages that have occurred during the pandemic. A major example is semiconductors. But even before pandemic, the US and China have been engaged in a trade war for over three years now. This has impacted the semiconductor industry which has a global supply chain. The intensity of…
Startups The ongoing year has been a phenomenal year for Pakistani startups as far as investments are concerned. Pakistani startups had received an investment of $77 million throughout 2020 whereas, in just 8 months of 2021, investments in Pakistani startups have crossed $228 million. That is a growth of about 3 times over 2020 with another 4 months still to go. Annual investments in Pakistani startups can reach billion dollars by 2025 if the momentum continues like this for the next couple of years. Over the last five years or more, government, academia, and industry have launched many incubators which…
The year 2021 has been even harsh for those who couldn’t recover from the shocks of 2020 due to job loss or salary cuts. Those who could stay at home and enjoy a steady stream of income should consider themselves lucky. There are many families who had to dig in their safety stock with whatever little savings they had considering the savings trend in Pakistan. While saving for uncertain times is always advisable, it is investing that will help in the long run. The first and the foremost thing is that how much cash is available at hand. One must…
Globally, fast rising trend of both external and domestic debt, emerging in 2008 and onwards due to economic recession has engulfed the entire financial world in a whirlpool of fiscal deficit both in developed and developing economies. Some of the high-income developing countries had taken radical measures to recapture their lost ground and luckily came out of quandary. However, the onslaught of Covid-19 factor has drastically damaged their economies and put them in a negative growth rate situation. The problem has, however, aggravated in case of low-income developing countries. Pakistan, in particular, where slow penetrations of aftereffects of global recession…
More than one year has passed but the battle against pandemic still continues. Governments and businesses are struggling hard to reduce the damages caused by the on-going Covid-19 pandemic to the socio-economic fabric across the world without any discrimination of rich or poor. While the analysts and medical scientists are busy in categorizing its spell into wave-1, wave-2 and at some places even wave-3, the arrival of the vaccine and marathon campaign to administer it, fortunately faded away the looming dark clouds of fears and uncertainties to a great extent. With the approval and rollout of the long awaited coronavirus…
Pakistan has been experiencing an acute shortage of energy right across all sectors especially industry and through energy disruption to domestic users. These shortages have highlighted the necessity for reliable, cost realistic and effective sources of energy and an improvement in the distribution of energy to facilitate development of the country. Pakistan currently relies disproportionately on thermal power generation from local gas fields and expensive imported oil to fuel both government and privately owned and rented power plants. Still the poor communities of Pakistan depend on wood and dried dung to heat their homes and in food preparation. Solar energy…
The overall impact of Covid-19 on food security and agricultural food systems was not known in the initial phases of Covid-19. However, during the last five months of unfolding of the diseases in Pakistan, Covid-19’s effect on lives and livelihoods, more so for the poor, is gradually making economic access to food for masses difficult. As per World Bank Group, South Asian countries may face food security challenges both in terms of supply and demand if not properly managed especially for marginalized sections in the society and Pakistan is no exception to it. Already it is understood that food insecurity…
Pakistan was somewhat unusual compared to other countries as regards the unexpected pickup in officially recorded remittances during 2020, particularly in the latter part of the year. Earlier surveys of remittance receipts suggested that remittances were falling during the pandemic. Given the massive displacement of migrants as they faced unemployment in host countries in April and May, earlier forecast expected a drop in remittances in Pakistan during 2020-21. However, despite GDP decline in sender countries due to the pandemic, Pakistan registered growth by end of 2020. Pakistan saw a growth in remittance of 17.4 per cent year-on-year in 2020. Regarding…
We created state of art platforms for flawless experience to customers Interview with Mr. Danyal Khan Afridi – Head of Operations, M A Fast Move Ltd UK (Shpun Remit) PAGE: Tell us something about yourself Danyal Khan Afridi: I started my career as a manager in hospitality and then drifted my focus to help those people who were struggling to send their hard earned money to their loved ones hence why I decided to take part in the remittances business. PAGE: Tell us something about your product and your key initiatives till date? Danyal Khan Afridi: The story starts with a few…
Commercial banks around the globe have designed and utilized Islamic financial instruments according to the rules of Shariah. Section 5(b) of Banking Companies Ordinance-1962 defines the business of banking as “banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise.” By analyzing both sides of the balance sheet of any Islamic bank, it is quite clear that like conventional banks, Islamic banks can also efficiently provide most of the banking services. However, the assets-side of the balance sheet looks…
The complexity and influx of data in healthcare means that Artificial Intelligence (AI) will increasingly be applied within the health sector. Several types of AI are already being employed by providers of care and life sciences companies. The key categories of applications involve diagnosis and treatment recommendations, patient engagement and adherence, and administrative activities. Although there are many situations during which AI can perform healthcare tasks better than humans, implementation factors will prevent large-scale automation of healthcare professional jobs for a considerable period due to ethical issues. Artificial Intelligence (AI) and related technologies are increasingly prevalent in business and society,…
Human health has become a major growing concern worldwide due to infectious diseases. Biotechnology has played a dynamic role in improving the challenges regarding human health because it has flexibility to scale back global health differences through provision of promising technologies. Health, life quality and expectancy of life are increased worldwide through the services provided by biotechnology. Malnutrition mainly arises due to the lack of essential nutrients and vitamins in food and ultimately results in death. Biotechnology has played a major role in eliminating these problems by producing nutrients enriched food such as golden rice, maize, potato and soybean etc.…