The government made fiscal adjustments of Rs815 billion or 2.1 percent of the GDP for bringing down the budget deficit from forecasted 7.2 percent to 5.1 percent of the GDP by striking out development outlay and raising tax rates for higher income groups and making imported products more costly in the revised budgetary estimates for 2018-19 before the Parliament. The government assesses to generate revenue to the tune of Rs5,309 billion in accordance with revised estimates against Rs5,246 billion. Total projected expenditures were estimated at Rs5,309 billion. The budget deficit was estimated at Rs1,979 billion or 5.1 percent of the…
Author: Mohammed Arifeen
PSDP, CPEC with private housing schemes likely to push and growth and development of the sector Huge rising demand encouraged cement manufacturers to invest Rs254 billion for expansion of their production capacities from 49.4 million tons to 72.8 million tons in the next few years. Investment in various infrastructure projects under Public Sector Development Program (PSDP) and China-Pakistan Economic Corridor (CPEC), combined with demand from private housing schemes have encouraged development of cement sector. The cement industry is experiencing a bulk transformation, as a number of cement industrialist are planning capacity expansions. There are 24 manufacturing units operating in the…
Revamp of the Pakistan railways would be completed within the next 120 days. The proposal to introduce standard-gauge rail track in the country under the China Pakistan Economic Corridor (CPEC) projects is duly considered. Steps are under way to provide more facilities to rail passengers. In order to facilitate passengers with disabilities and the elderly, elevators would be installed at major Railway stations across the country. The Railways administration has been directed to deal with other countries in their own currencies instead of dollar. All promotions will strictly be on merit. Pakistan Railways will overcome its deficit this year. The…
New Finance Minister Asad Umar will come up with a strategic plan about fixing external-sector issues. Any delay in seeking a balance-of-payments support program by the International Monetary Fund (IMF) may tremble the confidence in the economy of Pakistan the rupee. Exercising other options to stable the balance of payments needs a long time to good results. Pakistan facing foreign exchange crisis cannot afford to rely solely on them. The Finance Minister Asad Umar has made a detailed presentation to Imran Khan on not only the projected size of external-sector financing gaps but also viable options the government can exercise…
Country is moving towards creation of a supportive framework for Shariah-compliant banking The world’s most populous Muslim nation, so far a laggard in developing a comprehensive Islamic finance industry, took a big leap towards the creation of a supportive framework for Shariah-compliant banking on July 27. It was the day when the country’s President Joko Widodo inaugurated the National Committee for Shariah Finance or KNKS for its abbreviated Indonesian name, as part of the government’s push to make Indonesia a global hub for the Islamic financial industry. The KNKS has been tasked to accelerate, expand and develop Shariah-compliant financial services…
Pakistan ranked third largest fiscal deficit country among 36 economies: ADB Pakistan recorded a record budget deficit of Rs2.26 trillion (6.6 percent of GDP) in the last financial year 2017-18 due to a lagged performance of the tax machinery and expansionary fiscal policies. The Ministry of Finance in its annual consolidated and provincial budgetary operations report said budget deficit widened to Rs2.26 trillion in fiscal year 2018, equaling 6.6 percent of GDP. Fiscal year 2018’s budget deficit broke fiscal year 2017’s record of Rs1.864 trillion. The budget deficit for fiscal year 2018 was Rs780 billion (2.5 percent of GDP) higher…
Habib Bank Limited (HBL) is incorporated in Pakistan and is engaged in commercial banking related services in Pakistan and overseas. The Bank operates 1,703 branches inside Pakistan, including 47 Islamic Banking Branches and 48 branches outside the country including in the Karachi Export Processing Zone. The Aga Khan Fund for Economic Development (AKFED), S.A. is the parent company of the Bank and its registered office is in Geneva, Switzerland. Decline in profit for the first half Habib Bank Limited (HBL) posted 49 percent decline in profit after tax to Rs7.9 billion for the first half of financial year 2018 as…
Emergent water issue is the main concern for the country and the new Government of Pakistan led by Imran Khan who already had promises to resolve the same matter amicably need to make it a top priority as if no dams and water reservoirs were built on urgent basis, Pakistan would soon face drought like situation. Government should concentrate on urgent construction of more water dams in the country to deal with the growing water crisis as it may be noted that Pakistan has so far constructed total 155 dams due to which it could store water for just 30…
The government’s basic responsibility is to provide health, education and justice to its people. The new government wants to bring notable improvement in the sectors of health and education on a priority basis. Prime Minister Imran Khan has identified education reform as the central theme of his government. His first 100 days agenda seeks to ‘revolutionize social services’, including transforming health and education. A World Bank study (2007) shows compelling evidence that education quality, rather than simply years of schooling, is a driver of economic growth and increased equity, so the solution to improving education must involve technology. Without this,…
Federal Finance Minister Asad Umar recently stated that the government had worked out on every options under the current state of economic affair that it would need to borrow 9 billion dollars to manage the national economy but it is yet to decide whether to seek an International Monetary Fund (IMF) bailout package. If it decides to seek one, it would not be the first but the 13th time. Acknowledging the fact and figures for the economic recovery during the Senate session, Asad Umar said the government would announce reforms in the tax measures contained in the Finance Bill 2018…
The government has set an ambitious target of planting 10 billion trees in the next five years. This is roughly 5.4 million trees a day. Large-scale plantations have been carried out by all the past governments though the latest operation seems unparallel. Unfortunately, these ambitious projects did not succeed. ‘Water-guzzling’ eucalyptus and conocarpus were introduced to local terrains in the ’60s and ’70s. These species only thrived in water-logged areas. In urban cities the conocarpus’ invasive roots damaged drains and pipelines. In some cases, these trees had to be cut down, after being planted, as they were lowering the water…
Foreign outflow on the back of Pakistan’s entry into emerging market space, and political turmoil following the dismissal of Nawaz Sharif as the prime minister of Pakistan were some of the chief determinants pulling the local bourse southwards. As a result, the market slid around 15 percent during the year, and the benchmark shed 23 percent value since its peak on May 24, spiraling to an almost 16 month low. The year 2018 may yield lucrative returns, making the current market correction a good point of entry. 2017 was year of highs and lows for Pakistan in the stock market.…
Established in 2001 and regulated by the Securities and Exchange Commission of Pakistan. UBL Funds has been offering its products and services to investors in Pakistan for over a decade and a half and since 2011 has presence in the Middle East as well. With AUMs of Rs73.9 billion as of May 31st 2017, UBL Funds is one of the leading Asset Management Companies in Pakistan. It has also been given the High Management Quality Rating of AM2++ by JCR-VIS Credit Rating Company which connotes a high management quality rating assigned to an AMC in Pakistan. All investments in mutual…
Madar-I-Millat Mohtarma Fatima Ali Jinnah (1893-1967) Mohtarma Fatima Ali Jinnah, younger sister of Quaid-e-Azam Muhammad Ali Jinnah, was born in 1893. Of his seven brothers and sisters, she was the closest to the Quaid-e-Azam who became her guardian upon the death of their father in 1901. Due to her brothers’ keen interest, and despite strident family opposition, Mohtarma Fatima received excellent early education. She joined the Bandra Convent in 1902. In 1919 she got admitted to the highly competitive University of Calcutta (now Kolkata) where she attended the Dr. Ahmed Dental College. After she qualified, Quaid-e-Azam Muhammad Ali Jinnah went…
“With faith, discipline and selfless devotion to the duty, there is nothing worthwhile that you cannot achieve.” Muhammad Ali Jinnah “I do not believe in taking the right decision, I take a decision and make it right.” Muhammad Ali Jinnah “Think a hundred times before you take a decision, but once that decision is taken; stand by it as one man.” Muhammad Ali Jinnah “There are two powers in the world; one is the sword and the other is the pen. There is a great competition and rivalry between the two. There is a third power stronger than both, that…
Sir Syed Ahmad Khan known as the founder of Two-Nation Theory in the modern era was born in Delhi on October 17, 1817 and died on March 27, 1898 Aligarh, India. Sir Syed Ahmed Khan not only created awareness among the Muslims of Sub-continent about the significance of modern, scientific education, but he also advocated their case in front of the British Empire in a strong manner. He laid the foundation of academic pursuits. Pakistan now has 188 universities with a remarkably increased funding for higher education sector. Sir Syed Ahmed Khan, once said poverty results in increased crime rate.…
Bangladesh has become one of Asia’s most remarkable countries in the recent years. It remained an economic basket case. It was devastated by poverty, hunger and disease for many years after independence in 1971. By 2006, Bangladesh registered faster growth than Pakistan. Since then Bangladesh’s annual Gross Domestic Product (GDP) growth has exceeded Pakistan’s by roughly 2.5 percentage points per year. Its growth rate is likely to surpass India’s. At 1.1 percent per year, Bangladesh’s population growth is well below Pakistan’s 2 percent rate. Its per capita income is growing faster than Pakistan’s by approximately 3.3 percentage points per year.…
Shariah-compliant framework likely to be practice in Britain’s transactions next year The global Takaful industry is expected to experience strong growth driven by demand from Islamic countries according to speakers at World Takaful Conference, organized recently. Gulf Cooperation Council (GCC) countries including the UAE has been major growth markets for Takaful industry, countries in South East Asia, Middle East and North Africa are fast emerging as new growth markets, while data and indicators confirm the growing role of Takaful insurance in the insurance industry in the UAE. Takaful insurance contributions accounted for about 10 percent of the gross written premiums…
According to a report by Dubai Center for Islamic Banking and Finance (DCIBF), the global takaful insurance market would reach US$52.5 billion by 2020. In 2015, it was estimated at $23.2 billion. After the spectacular growth asset growth of Islamic banking and finance in the past years, the Islamic insurance, or Takaful, industry, is expected to go into full swing due to the regulatory improvement in some countries and the higher readiness in Muslim nations for risk coverage. In 2017 acquisition of Al Hilal Takaful by Takaful Emarat in the UAE, a deal created the largest Takaful group in the…
The general Takaful operators in the early years failed to adopt a joint approach in promoting the cause of Takaful as a Shariah-compliant risk-coverage mechanism. Overlooking the desired Islamic spirit of transparency in dealings, they harshly competed. This created an unethical image of the Takaful industry. As regard to human resource factor generally, opportunism has been the deciding factor for individuals with conventional insurance background, to join newly-formed Takaful operators at senior/middle management levels. The required incitement to acknowledge the Shariah requirements and to obediently contribute for the cause of Takaful on strong and careful commercial practices within the Shariah…
Company has a vision of providing financial protection through Takaful to everyone with every digital mediums Pak-Qatar General Takaful Limited (PQGTL) is one of the leading General Takaful companies in Pakistan. The company commenced its operations in 2007. Pak-Qatar General Takaful Limited offers comprehensive General Takaful (Non-Life insurance) products’ portfolio for corporate customers as well as individual clients. Incorporated in 2006, and beginning operations in 2007, the company is registered with, and supervised by, the Securities and Exchange Commission of Pakistan (SECP). An independent Shariah Advisory Board chaired by Mufti Muhammad Taqi Usmani certifies all products and operations for Shariah…
Pakistan witnessed an increase of around 80 percent in oil and gas exploration activities in different potential areas during the last four years. The government took a number of initiatives which resulted in drilling of over 179 exploratory and 194 appraisal/developmental wells. The Exploration and Production (E&P) companies made over 101 new oil and gas discoveries with 40 percent success rate. The increased number of discoveries a ‘record’ in a short span of four years has added over 944 million cubic feet per day (MMCFD) gas in the transmission network across the country and added 32,343 barrels oil per day…
Pakistan’s dependence on the hydrocarbons has been growing immensely where the dwindling indigenous resources are being counterpoise by imports. According to the Economic Survey 2016-17, the domestic production of crude oil stood at 24.2 million barrels during 9 nine month fiscal year 2017. Pakistan imports large quantities of oil and petroleum products from Saudi Arabia and other Middle Eastern countries. These crude oil imports stood at 5.9 million tonnes in nine month fiscal year 2017 versus 4.2 million tonnes in nine month fiscal year 2016. Transportation and power are the two major users of oil, and the share of oil…
The company was formed in January 1995 as a public listed company. It started its first oil refinery with a capacity of 30,000 barrels a day at Hub, Balochistan with commercial production starting from July, 2004. The capacity was later enhanced by 5000 barrels a day during the 2010 turnaround, making the total capacity to 35,000 barrels a day. The company is engaged in the refining of various petroleum products including Liquefied Petroleum Gas, Light Naphtha, Heavy Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High Speed Diesel and Furnace Oil. In 2007, it launched its fuel marketing…
Germany’s model will help Pakistan get clean, affordable and sustainable power supply Pakistan and Germany signed a Memorandum of understanding for establishing Pakistan German Renewable Energy Forum (PGREF). The newly established renewable forum would fortify Pakistan’s efforts to capitalize available potential of clean and green energy. This forum would serve as a hub for Renewable Energy and Energy Efficiency business networking, customer outreach and business development in Pakistan and Germany. The available potential in the country and global developments in the sector will definitely play a vital role in ensuring sustainable, clean, affordable and much reliant resource of energy to…
Pakistan withstands the burden of one of the most illiterate countries of Asia. About half of the male population is illiterate and two third of the female population cannot even write their names. Pakistan with its 58.7 percent literacy rate is even lower than Nepal and Bangladesh, which has literacy, rates of 64.7 and 61.5 percent respectively. Countries like the Maldives and Sri Lanka have achieved far more impressive results given that above 90 percent of the population in both these countries is literate. India has a 61 percent literacy rate, despite its enormous population. Poverty is the biggest disadvantage…
Population growth rate in Pakistan is extremely high due to high fertility rate with a large proportion of young adults and children. Pakistan had a population of 33 million in 1950 and ranked 14th in the world but its population has reached around 210 million now making Pakistan 6th most populous country of the world, after China, India, USA, Indonesia, Brazil, and surpassed Japan, Bangladesh, Nigeria, South Korea, Russia etc. Pakistan’s population is still growing at an alarming rate which projected to exceed 300 million by 2050, according to reports. It is need to be seriously addressed why fertility rates…
ADB approves $275 million loan to increase agricultural production and improve food security in Punjab To ensure progressive food security there is the need of taking aggressive measures to minimize negative impact of demographic growth coupled with climatic change in South Asian region according to economists. Without concerted efforts by the entire region’s stakeholders it would not be possible to tackle already rising regional food security issue. There is the need of building strong cooperation both at institutional and country level between the developed and developing world to minimize the enemies of climate change in already food insecure South Asia.…
Bangladesh is better than India and Pakistan in health facilities Good health is important to live a healthy, peaceful and prosperous life. Our citizens are suffering from poor health conditions since ages. Health care sector in Pakistan consist of private and public sector. The private sector serves nearly 70 percent of the population. A survey by the Federal Bureau of Statistics in Pakistan indicated that about 50 percent of the basic health units were without doctors and that about 70 percent of government health facilities were without any female staff. Only about 56 percent of the country’s people have safe…
The Department of Cardiology at Tabba Heart Institute, Karachi provides comprehensive Diagnostic and Therapeutic services to adult patients with cardiovascular diseases. They are offering one of the best and most comprehensive cardiology services in the country but unique in taking the personal care of the patients because as a patient here, you’ll be treated like one of the family members. From making sure you (patient) find your way to your next appointment, to educating you about heart disease, to assessing your family’s risk for heart disease Tabba’s Cardiovascular Health Education Center do best to make your experience as our patient…
Poverty stricken people in Pakistan who cannot afford to pay private hospitals bill opt for government hospitals for their treatment but the condition in most of the government-run hospitals is very much miserable which in turn highly affects lower and middle class population’s health with an unhealthy and unsafe atmosphere. Insects roaming inside the hospitals and animals like cats and dogs have all access with filthy sewerage system and old and dirty bed and sheets are the routine practice at our government hospitals. The OPD (out-patient department) is crowded. Thousands of patients go there daily but there aren’t enough doctors.…
Over half a million people are estimated to be carrying tuberculosis (TB) in Pakistan according to the report the World Health Organization’s (WHO) Global Tuberculosis report 2016, estimated that there were 510,000 people afflicted with the disease in the country that means that 270 out of 100,000 people are affected by the TB. The WHO has ranked Pakistan fifth among tuberculosis (TB) high-burden countries worldwide, with some 510,000 registered TB cases and some 15,000 developing drug resistant TB cases every year. TB is a leading infectious cause of death worldwide. Pakistan among the 22 high TB burden countries contributes an…
According to Union for International Cancer Control (UICC), 8.2 million die of cancer per year worldwide, while 14 million new cancer cases are registered every year. However, breast cancer is the top malignancy in Pakistan. According to data registry, the top three malignancies in all age groups and both sexes combined were breast cancer, leukemia and lip and oral cavity cancer. 40,000 women died of breast cancer in the country during 2017. About 90,000 cases of breast cancer were reported during the same year. Genetic disposition along with environmental factors, mainly linked to lifestyle, has presently exposed one out of…
There is increasing number of ‘extensively-drug resistant’ (XDR) typhoid cases being reported in the Karachi city and public has been told to adopt good hygiene practices, drink boiled water and avoid eating raw food. Experts have called upon the government to initiate efforts for better sanitation and free vaccination campaigns against typhoid, a preventable disease. XDR typhoid has high risk of complications and is difficult to treat. It has become quite common now. According to sources around 30 cases of this disease reported every week and these stats represent only one hospital. Surveys are under way to collect comprehensive data…
The Port of Karachi is one of South Asia’s largest and busiest deep-water seaports handling about 60 percent cargo dealings worldwide. The international freight forwarding business emerged in Pakistan in 1980 and since seaborne trade continues to expand the shipping industry grows and strengthens especially with the help of the international shipping companies being actively involved in Pakistan. Shipping industry is a huge, multi-billion dollar business, the industry is the means of support of the world’s economy and accounts 90 percent of the global trade. Following are the world’s top five shipping companies who have operations worldwide including in the…
It was a long time dream of Pakistan authorities to make Gwadar port — a small but strategically located fishing port — into mega duty-free port and free economic zone like Dubai port, so reliant on major China’s investment the mission is almost achieved as very soon the Gwadar Port is capable of handling large trade of Pakistan with all the regional and international countries. Gwadar Port will be able to handle about one million tons of cargo annually by the end of the year. With expansion plans under way, the port will become South Asia’s biggest shipping center within…
NGO Shipbreaking Platform in its annual report 2017 says that pollutant and dangerous scrapping has been a key area of concern for Pakistani ship recycling industry. Gadani shipbreaking yard is the world third largest consisting of 132 shipbreaking plots. It operates directly on the beach, without any drained working areas to protect the sea and sand from pollution. Dangerous waste in Gadani, hazardous and polluting substances like asbestos, PCBs and residue oils are dumped behind the shipbreaking area. Workers’ health and safety are being deliberately ignored in Gadani. Pakistan National Trade Union Federation (NTUF), have expressed strong concerns related to…
Bangladesh is one the world’s top four ship recycling countries by capacity. Bangladesh, China, India and Pakistan account for 94.9 percent of known ship recycling in the world. The biggest is at the Bangladeshi port city of Chittagong, which recycled 230 ships last year. The industry employs hundreds of thousands of people, often poor rural migrants, and pumps millions into local economies. Bangladesh gets 60 percent of its steel supply from the rusting hulks, Pakistan at least 15 percent and India 5-6 percent. Ship recycling industry in Bangladesh has received considerable attention via providing raw materials to steel industry, shipbuilding…
The growth rate of Pakistan’s telecommunication sector has been significant during the last four years. Information Technology and Telecommunication has contributed a lot by bringing Mobile Broadband services – 3G, 4G, LTE, to the country. Pakistan has been working with firm determination for three years and even now is working hard for the development of its telecom sector. The concerned ministry has been working with great determination to provide the telecom services to the not served people of Pakistan since the issuance of the 3G/4G licenses. In 2014, 3G licenses were awarded to Jazz, Telenor, Ufone, and Zong while the…
Pakistan’s Information Technology industry has demonstrated positive growth trends for the last four years. During 2016-17, Pakistan’s IT exports were $3.3 billion, which have climbed to $5 billion and are expected to grow to $6 billion in the coming years. Enterprise software has grown by 17 percent, marketing tech 15 percent, financial services 13 percent, consumer goods 9 percent, retail/e-commerce 8 percent, professional services 8 percent, internet of things/hardware 7 percent, health care 4 percent, media 4 percent and non-profit 3 percents. Amazon and large IT sectors are expecting huge in the startup world of Pakistan as evidenced by the…
The Information Technology industry of Pakistan is expecting rapid growth under the China-Pakistan Economic Corridor (CPEC) project. CPEC has already boosted the infrastructure of Pakistan which has pushed the IT industry remarkably. The ongoing scheme under CPEC includes, Construction of Cross Border OFC System between China and Pakistan for International Connectivity of Voice/Data Traffic (SCO) and provision of Seamless GSM Coverage along KKH for proposed Gwadar Kashighar Economic Corridor in Gilgit-Baltistan (SCO). The building of roads, ports, dams, connecting cities, has provided a much needed boost to the economy, which will bring huge benefits to the Information Technology industry of…
TRG Pakistan Limited provides business process outsourcing solutions and services in Pakistan, it is a holding company and holds 46 percent stake in TRG International Limited (TRGIL), which in turn owns stakes in over 20 companies that offer services such as software and artificial intelligence (Afiniti), call center (IBEX Global), market research (iSKY), etc. Based in Karachi, Pakistan the company manages and maintains telephone answering services, call centers and information technology related services in Pakistan. The company was incorporated in Pakistan as a public limited company on December 2, 2002 under the Companies Ordinance, 1984 and is listed on the…
The month of March global consumer confidence Primary Index has risen to 50.6, tying the record high set in January 2018 since Ipsos started tracking in 2010. The Primary Index is a measure of consumer attitudes in 24 countries regarding the current and future state of local economies, personal finances, savings, and confidence to make large investments, as measured monthly by Ipsos. These findings are based on data from Thomson Reuters/Ipsos’ Primary Consumer Sentiment Index (PCSI) collected in an ongoing survey that has conducted 17,500 interviews monthly since January 2010. Nine countries saw a significant increase in their Primary Index…
According to the bank, to be a member of the middle class in 2015, a Pakistani adult must have a wealth of at least $14,413. At a rate of Rs106 to a dollar, this comes to Rs1.53 million. The bank calculated the total wealth in Pakistan at $495 billion, or Rs52.47 trillion. It used the IMF’s series of purchasing power parity to drive the equivalent middle class wealth bounds in local terms. In a 2011 publication titled ‘Estimating the middle class in Pakistan,’ Dr Dur-e-Nayab, an economist associated with the Pakistan Institute of Development Economics (PIDE), came up with a…
There was record spending this year during the Eidul Fitr in Pakistan as consumer spending on this auspicious occasion has crossed the rupee one trillion mark with a raise of around 15 percent to the preceding year. Many analysts see this positive change witnessed due to factors of improvement in political, social and economic front as despite the boiling heat spell especially in Karachi people made much of the time for Eid shopping. Consumers confidence is developing now with people are more aware of budget concept due to the growth of internet and television advertisements, say analysts. As Eidul Fitr…
India is striving to become the world’s third-largest consumer market by 2025. Consumer spending is on the rise in India. The country is currently ranked eighth largest consumer market, according to the World Bank. “The outlook for India’s consumer market looks promising,” says Kamaljit Anand, the managing partner and regional head, Europe and mainland Asia, at KiE Square, an analytics firm. “There are several factors, including higher disposable incomes, and societal change is also towards consumerism.” India has a population of 1.3 billion and half of those people are under the age of 25. India’s per capita income is still…
Pakistan’s trade deficit rose to all-time high nearly $34 billion in the first 11 months of the current fiscal year. This was a grievous problem for the government to impede rising current account deficit. The deficit widened to about 13.3 percent during the July-May period of the current fiscal year, according to official figures. It rose to $3.76 billion in May, an 8.6 percent year-on-year increase. Trade deficit had been one of the most serious challenges for the government of Nawaz Sharif in the last year of its five-year term which completed on May 31. The last financial year saw…
Despite strained relations, Pakistan’s exports to Afghanistan reached a two-year high during the first 10 months of the current fiscal year. Afghanistan is the second largest export market for Pakistan while Pakistan is major trading partner of it. But their relations have tense history. Pakistan and Afghanistan have never maintained permanent friendly and trade relations with each other, despite the landlocked western neighbor has remained mostly dependent on Pakistan for its day-to-day transaction while both countries are also immediate markets for each other and for future both need to strengthen trade cooperation. The latest report from the State Bank of…
Mango exports of Pakistan earned $94.059 million in foreign exchange during two years as 129,423 tons of mangoes were exported to various countries during the period between 2014-16. During 2014-15, Pakistan exported 65,311 tons worth $45.672 million while in 2015-16, 64,112 tons were exported valued at $48.387 million. Most importing countries require vapour heat treatment and irradiation before accepting exports. The government has taken steps to improve quality including establishing of standard operating procedures (SOPs) for growers for effective farming and cultivation. The government has established 34 ripening chambers along with banning the use of calcium carbide. Mango exporters blame…
A new study reveals that Pakistan is one of the most charitable nations. It contributes more than one percent of its Gross Domestic Product (GDP) to charity, the Stanford Social Innovation Review reported. Pakistan comes into the ranks of far wealthier countries like the United Kingdom (1.3 percent GDP to charity) and Canada (1.2 percent of GDP), and stand around twice what India gives to those in need as a percentage of its GDP. Pakistan Centre for Philanthropy shows that Pakistanis give around Rs240 billion (more than $2 billion) annually to charity. The report indicates that about 98 percent of…
According to the recent Economic Survey, Pakistan’s total number of poverty count has registered a prominent decline in last 10 years at both the regional and national levels. The fall in poverty shows more eminence in urban areas than rural areas, reported in the Economic Survey 2018. Poverty headcount has shown a fall of 5.7 percentage points in urban areas and 4.9 percentage points in rural areas during the period 2014-2016. According to the Economic Survey 2018, Pakistan has posted a remarkable fall in poverty incidence since the year 2007-08. Some of the major reasons which contributed to this fall…
Microfinance banks help farmers and people who work in small industries and play vital role in the country’s economic growth. Micro, small and medium size enterprises (MSMEs) along with small farmers are leading the growth of Pakistan’s economy. Up to 80 percent of non-agricultural labour force is said to work in MSMEs in Pakistan while over 70 percent of Pakistan’s farmers grow crops on landholdings of less than five acres. At the end of the third quarter in 2017, the gross loan portfolio of Pakistan’s entire microfinance industry stood at Rs183 billion. This was up 49 percent compared with last…
Trade and industry stakeholders have warned that an unchecked increase in dollar rate will increase the cost of production, affecting the manufacturing as well as agriculture sectors badly, because the country has to import fertilizers, food items, oil, machinery and industrial raw material. The financial experts and economists said the rupee has been collapsing in a superficial devaluation by the Central Bank itself. They said though the weaker rupee benefits the exporters by giving them more rupees per dollar but this benefit is countered by the costly imported inputs of manufacturing sector including textiles thus consuming the financial advantage of…
The State Bank of Pakistan (SBP) has asked all foreign exchange companies to make sure their business is in compliance with the anti money laundering rules and regulations and in this regards Forex Association of Pakistan (FAP) have come up to the expectations of the Central Bank. FAP planning to organize workshops and training programs in cooperation with the Central Bank, banks and experts of anti money laundering laws for executives and staff of all exchange companies. The SBP will proceed against those companies unaware of anti money laundering and take steps in fighting terrorism financing exchange companies. Banks are…
Set to launch saving certificates in US dollars, an attractive opportunity to encourage overseas Pakistanis Central Directorate of National Savings (CDNS) is a top-ranking financial institution offering retail government securities and savings products (known as national savings scheme) to small savers through expansion product mix. The institution has investor base of seven million and portfolio, which is around 30 percent of total banking deposits of nearly Rs12 trillion. CDNS share in domestic debt of government is around 19 percent. Most of its products are designed for low-income section of the society. Central Directorate of National Savings (CDNS) raises interest rates…
Islamic Development Bank (IDB) – a multilateral developing institution of the world initiatives are aimed at youth, technology and innovation. The Bank recently launched Transform, a multimillion dollar fund that will work to promote and nurture science, technology and innovation. The Bank has also launched a digital platform to accelerate economic and social progress in the developing world through science technology and innovation. The fund will bring the right tools to local communities so that they will be able be in charge of own future. A lot of the younger generation engaged in trying to make a better society. Women…
The population of Australia is 25 million people – of which 2.6 percent or around 650,000 place themselves as Muslims as per the latest census in 2016. Australia does not have dedicated Islamic finance laws and regulations as like in United Kingdom and some other European countries. The Shariah-compliant finance scene is flourishing in line with Australia’s strong economic growth. Australia in fact has a significant number of Islamic finance service providers which offer a large sphere of Shariah-compliant finance products ranging from house financing, Islamic pensions, wealth management to Halal superannuation funds and Takaful. Major industry players include Hejaz…
Dubai Islamic Bank Pakistan Limited (DIBPL) is a wholly-owned subsidiary of Dubai Islamic Bank UAE (DIB). The parent company DIB is a listed company in Dubai. The Bank has maintained its position as an innovative solution provider to all the financial needs of its customers, in accordance to Shariah compliance. Since its inception in 1975, Dubai Islamic Banking Group has established itself as the undisputed leader in its field, setting standards for others to follow as the trend towards Islamic banking gains momentum in the Arab world and internationally. The group offers a wide range of pioneering products and operates…
The rapid growth of Islamic finance has drawn the attention of national policy makers. There is growing acknowledgement of the contribution that Islamic finance can achieve the object of economic and social development. The expanding size of the Islamic banking sector marks the significance of a strong policy point to ensure that legal and regulatory frameworks are sufficient to ensuring orderly growth. These of issues have direct application to Bangladesh, which has a large and growing Islamic finance industry. For Bangladesh Islamic finance sector is a social infrastructure that supports economic development and job creation. Muslims and non Muslim countries…
Master of Business Administration (MBA) degree is indeed a career in professional education. It had at one time high salary package, in the country. The number of the universities, institutes, schools, and colleges offering BBA (Hons) and MBA Programs education in the country is increasing speedily but less emphasis is given on quality of education. The standard of MBA at Institute of Business Administration (IBA) is excellent. IBA Karachi and Lahore University of Management Sciences (LUMS) have natural favor in students and industrial environment. Strengthening the growth of domestic markets for MBA’s should be the top-most priorities in Pakistan. No…
According to an international study comparing their status in 21 countries the teachers in China have the highest levels of respect. Teachers in the UK were in 10th place in the global index which was compiled by the University of Sussex professor Peter Dolton. The study was based on surveys of 1,000 adults in each of the countries. This explored public attitudes to professional status, trust, pay and the desirability of teaching as a career. The study accepted the high status of teachers in China. In China, there is a vigorous cultural emphasis on the importance of education. “Teachers are…
Higher Education Commission of Pakistan (HEC) has been doing a remarkable service to help overseeing, regulation and accrediting the higher education for the youth of the country. The Commission showed tremendous growth and the country’s education system has seen a phenomenal growth under the Commission during the past many years. But the Commission’s claim of formulating higher education policy and quality assurance to meet the international standards and development of new institutions and uplift of existing institutions in Pakistan losing its standing since HEC came its modern form in 2002 under the leadership of Atta-ur-Rahman. HEC budget unfortunately slashed Development…
The Program for International Student Assessment (PISA) provides education rankings based on international tests taken by 15-year-olds in mathematics, reading and science. The tests, run by the Organization for Economic Cooperation and Development (OECD) and taken every three years, have become increasingly influential on government stakeholders who see their countries and their policies being measured. So in the last test conducted in 2015, Singapore has been ranked as having the highest-achieving schools and it has recorded the highest achieving students in international education rankings. The students top in tests in mathematics and science. Singapore, named as the top rated country…
Pakistan has witnessed improvement in exporting food products during the last seven months of the current fiscal year 2018. It has exported food products worth $2.395 million in just 7 months which was up by 18.8 percent as compared to corresponding period in the last fiscal year. Last year during the same period Pakistan’s food exports were standing at $2.016 billion. Food exports are increasing faster this fiscal year, but the quality of exports is not up to the mark to have the immediate impact on high food trade deficit. Food exports data published by the Pakistan Bureau of Statistics…
The Senate Standing Committee on Finance during the post-budget 2018-19 session informed that Pakistan has no more plan to enter into new International Monetary Fund (IMF) program. It is projected that the current account deficit would be met through loans and floating of bonds. Pakistan needs $3 billion by the end of June this year mainly for debt retirement and some other components leading to rising current account deficit. The government aims to raise $3 billion through floating of bonds and papers in international markets, while loans are likely to be obtained from World Bank and the Asian Development Bank.…
As the military assistance from the US been reduced, Pakistan has raised its defense spending for the year 2018-19 by around 19.6 percent, the highest increase during the government’s current tenure. To have good civil-military relations the government proposed Rs1.1 trillion budget for the three armed forces in the coming fiscal year. For the first time in Pakistan, defence outlay crossed the Rs1 trillion. The allocation for 2018-19 shows an increase of Rs180 billion, or 19.6 percent, as compared to the spending by the armed forces in the outgoing fiscal year. The federal government has limited the budget for the…
Infrastructure is the first step, and it will be followed with trade and investment and industrial cooperation. Efforts to expedite trade and investment also matter and infrastructure improvements such as bilateral agreements on boosting customs clearance and newly opened air links have also increased over the past five years. More government support fueled a 37 percent rebound in private sector investment in developing-country infrastructure projects, says the World Bank’s 2017 Annual Update of the Private Participation in Infrastructure (PPI) database released. Despite this optimism, 2017 investment commitment levels still remained 15 percent below the average for the past five years,…
Since the signing of China-Pakistan free trade agreement in 2007 and the launch of China-Pakistan Economic Corridor (CPEC) in 2013, the bilateral trade volume and investment have soared. China is Pakistan’s largest trading partner and foreign investor. Pakistan had vastly benefited from both China’s economic development and Belt and Road initiative proposed by Chinese President Xi Jinping. Pakistan’s 1,320-megawatt Sahiwal and 660-megawatt Port Qasim coal-fired power plants had been completed and Peshawar-Karachi highway, upgrading of Karakoram Highway and Lahore Orange Line Train were in final stages. China-Pakistan Economic Corridor (CPEC), a flagship project of Belt and Road Initiative (BRI), will…
Pakistan transformed the dream of China-Pakistan Economic Corridor (CPEC) into reality by making the Gwadar Economic Free Zone operational. The potential of Gwadar has been fully realized. Due to the dedication and hard work of Pakistani and Chinese teams, both CPEC and Gwadar were heading towards a bright future. There was an urgent need to transform Gwadar into an international city. The city is fully functional and now it can serve the future demands of its people. The federal government will equally share in the equalization package for Gwadar so as to provide quality services in health, education and other…
Pakistan’s signing of China Pakistan Economic Corridor (CPEC) with China is a landmark of economic cooperation between the two countries. It is expected that this Corridor would boost Pakistan’s sick economy in the years to come. Gwadar is a warm water deep sea port located on the southwestern coast of Pakistan in the Balochistan province. The strategic location of Gwadar is located at the junction of the Arabian Sea. It is located about 700 km from Karachi and about 75 km from Iranian port Chabahar. It is connected to Chinese city of Kashgar with land distance of about 2000 km…
Under-invoicing is a key source of Customs Duty leakage in imports in the absence of effective measures to restrict or minimize this malpractice. Due to growing mis-declaration of commercial imports, it was proposed four years back to link the Pakistan Customs with China Customs. Some initial work was undertaken by the Customs department but nothing happened. The major reasons for under-voicing are attributed to the defective software in use by the Customs. To tackle under-invoicing of imports, Pakistan and China have reached an agreement to initiate digital exchange of trade data from April 30th, 2018. This move is being carried…
The federal cabinet approved budgetary papers with total outlay of Rs5,500 billion for budget 2018-19, where tax collection has been set at Rs4,500 billion. Finance Division presented the Budget Strategy Paper for Financial Years 2018-19 to 2020-21 in a meeting chaired by the Prime Minister Shahid Khaqan Abbasi, last week. While briefing the Secretary Finance said the Budget Strategy is based on four broad targets including sustained growth momentum, ensuring fiscal consolidation, managing balance of payments and ensuring debt sustainability. It was also informed the recently announced Economic Reforms Package, including lowering tax rates, widening tax base, real estate reforms,…
In the upcoming fiscal year 2018-19, the government is considering raising subsidies to Rs 189 billion from the current year’s budgeted total of Rs 138.8 billion rupees, which shows a raise of 36 percent. Providing of this (subsidy) facility is common in the world and does in our country, but we still need the facility be comprehensive and advantageous as our past government repeatedly failed in fulfilling the actual needs of the masses while displeasing the common man on many instances. There are number of relief schemes in the past budgets and some extra government’s measures taken to support the…
Adviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr. Miftah Ismail has stated the next Budget of fiscal year 2018-19 would not have an increased Public-Sector Development Program (PSDP) budget. Mr. Ismail has said the next year’s development budget would be allotted for ongoing current schemes. The Planning Ministry opposes this policy of allotting the budget for current schemes underway. It believes the outgoing government must provide fiscal space in macroeconomic framework for the next government to work with and launch new schemes. The Finance Ministry has proposed Rs 17.045 billion Public Sector Development Program (PSDP) for 10…
Representative bodies and bodies promoting trade and investment in the country presented the following proposals for the Budget 2018-19: Demands of OICCI Overseas Investors Chamber of Commerce and Industry (OICCI) demanded that the government put an end to the Super Tax in upcoming budget 2018-19. OICCI Super Tax should be deleted from Finance Bill. The government had imposed 4 percent super tax in the Finance Act 2015-16 for the period of one year but was later extended for another year. The effective corporate income tax rate should be 25 percent from the fiscal year 2018-19. The number of rates currently…
Pakistan at the time of its birth had hardly enough arable land and surface water resources to achieve food security. The Mangla Dam and other associated water infrastructure were constructed, and a massive land-clearing and reclamation effort was undertaken. The area under cultivation saw an increase as did the yields through large-scale utilization of modern inputs like urea fertilizer to lift the agrarian potential of the country and achieve food security by the early 1970s. All is now changing. Pakistan began to see widespread incidence of malnutrition, which had until now largely impacted the youngest children. Now the Food and…
Agriculture and food security in Pakistan highly vulnerable to climate change impact Edible imported oil and fuel oil are threat to food security Pakistan needs sustainable means to grow food and adopt technological innovations and must create awareness and understanding of agriculture technologies. Sophisticated technology has a strategic role in the future of agriculture sector in Pakistan. Growing population, climate change, scarcity of water and changing lifestyles continue to pose challenges to food security. Climate change The climate change with natural calamities in the country such as unpredictable rainfall patterns, floods and drought, the growth in population and poverty is…
Agriculture is a pillar of Pakistan’s economy, representing 45 percent of the workforce and 21 percent of GDP and for this sector growth fertilizer is main source of Pakistan. Since Pakistan is an agro-based country there are well renowned manufacturers and suppliers of fertilizers in Pakistan. Pakistan is also one of the ten major producers of wheat in the world with an average 24 million tons output per season. Major fertilizers industries of Pakistan produced different kind of fertilizers with ranking of Engro Pakistan 33 percent. Important fertilizer companies in Pakistan are: Fauji Foundation, Pak China Fertilizer, Engro Chemical Lyallpur…
Food security is a major issue for both wealthy and poverty-stricken countries Half a million people will die worldwide in 2050 as climate change will harm food supplies War, drought, regional conflict and natural disasters affect a country’s ability to feed itself. Food security is a major issue, for both wealthy and poverty-stricken countries all over the world. Continued population and income increase have pushed the United States, China, Germany, Japan and the United Kingdom up the list of the countries who import the most food items. Importing a high amount of food does not necessarily mean that a country…
Cement production in Pakistan increased to 3,644 tons in January from 3,459 tons in December of 2017 taking an increase of 185 tons in a one month period. Cement production averaged 2,296.42 tons from 2003 until 2018, reaching an all-time high of 3,691 tons in October of 2017 and a record low of 864 tons in May of 2003. According to the figures released by the All Pakistan Cement Manufacturers Association (APCMA), the total cement sales in March 2018 were 4.652 million tons, the highest ever in the history of the cement industry. This was 17.33 percent higher than the…
Local tractor industry is playing a strategic role in the promotion of the agriculture sector and strengthening national economy. More than 250,000 people are associated with tractor manufacturing industry. Pakistan was able to export locally manufactured tractors to eastern European countries, including South Africa during the current year. The tractor industry is showing signs of revival after a critical period of five years, which saw sales down by almost 80 percent. The lion’s share went to two main sellers, i.e. Massey Ferguson and Fiat, which sold 23,263 and 14,776 tractors, respectively. Two major reasons behind rising sales are the revival…
China is the world’s largest steel exporter. In 2017, China exported 73.3 million metric tons of steel, a 31 percent decrease from 106.6 million metric tons in 2016. China’s exports represented about 23 percent of all steel exported globally in 2016, based on available data. The volume of China’s 2017 steel exports was nearly double that of the world’s second, third, and fourth-largest exporters, Japan, South Korea and Russia. In value terms, steel represented just 2.4 percent of the total amount of goods China exported in 2016. China exports steel to more than 250 countries and territories. China’s exports of…
Prime Aluminium Industries was incepted through formation of Pakistan Glass in 1969 by the founder member late Asadullah Khan, Tehrik-e-Pakistan gold medalist. This legacy was carried forward by his son Ziaullah Khan, a geologist who established Khan Glazing Company in the year 1988. Since then many of the renowned international contemporaries have joined hands in this pursuit of excellence. Few prominent associates are:- Guardian Industries, Saudi Arabia Guardian Industries, Rasulkhaima P.T. Mulia Glass, Indonesia Glaver Bell, Belgium Ford Glass, USA The caravan of innovation achieved yet another landmark, when in 2003 an industry to produce high quality mirrors with Aluminium…
According to the latest Quarterly Performance Review (QPR) of the banking sector for the quarter ended 31st December, 2017, released by the State Bank of Pakistan, improving asset quality, stable liquidity, robust solvency and slow pick-up in private sector advances were the key developments during the last quarter of calendar year 2017. Asset base of the banking sector has expanded by 4.5 percent in the quarter of calendar 2017. The promising demand from textile and cement sectors have improved gross advances (domestic) to private sector despite retirements in chemical and pharmaceuticals. Banks have mostly invested in short-term MTBs while investments…
Habib Bank Limited (HBL) is one of the few financial institutions, which caters to farmers financing need and has played a pivotal role in the development of the rural agriculture market. With the distinction of being the largest commercial bank in Pakistan, HBL has influenced thousands of lives in the farming communities across the country and is committed to improving the agricultural sector’s growth. Through unique product offerings in the market, with the help of a technically skilled sales team in the field, HBL has been able to educate and facilitate its customers and the farming community. HBL Rural Banking…
To create Islamic finance system in India remained misunderstood as Reserve Bank of India (RBI) an autonomous body has been unresponsive toward Islamic banking in India. Last year, the idea of Islamic banking in India was forwarded by the former governor of RBI Raghuram Rajan but the RBI management has dropped the proposal instead the idea would have brought in billions of dollars worth investment and remittance into the ailing India economy. The ground reality of dropping of fully introducing the Islamic banking system into the country, is not clear either it is political or secular thinking. Moreover, the objection…
Zarai Taraqiati Bank Limited (ZTBL) erstwhile Agricultural Development Bank of Pakistan (ADBP) is the premier financial institution geared towards the development of agriculture sector through provision of financial services and technical knowhow. The restructuring of former ADBP is being carried out with the aim to uplift the agriculture and rural sector by raising farm productivity, streamlining the institutional credit and increasing income generating capacity of the farming community. ZTBL was incorporated as a Public Limited Company on 14th December, 2002 through repeal of ADB Ordinance of 1961. Thereby transforming the Bank as a corporate entity to serve as RFI option.…
Surrounded by declining foreign exchange reserves and weakening capacity to repay, Pakistan’s external debt and liabilities rose sharply to almost $89 billion at the end of December, reported the State Bank of Pakistan (SBP). Former finance minister and eminent economist Dr Hafiz Pasha had predicted in December 2015 that by June 2019, Pakistan’s external debt and liabilities would touch $90 billion. With six months to go, the likelihood of external debt and liabilities crossing $90 billion is extremely high. Pakistan’s total external debt and liabilities as of December 2017 stood at $88.9 billion, higher by $5.8 billion or 6.9 percent…
World Bank expects the inflation rate to rise to 6 percent by the end of 2017-18 Inflation refers to price rise of important essential commodities like wheat, flour, milk, meat, medical services and other essential services of life etc. Inflation affects the whole social framework of society including economy of the country, production and political environment. Inflation is a deadly disease for developing economies as it imposes high cost on economies and societies. Inflation rate in Pakistan averaged 7.79 percent from 1957 until 2018, reaching an all-time high of 37.81 percent in December of 1973 from a record low of…
Pakistan is working on all round strategy to reform country’s tax structure. The government has planned to lower tax slabs for individual taxpayers. The government is planning to increase the tax net through technology-related measures and in this regards, the government will soon announce a one-time tax amnesty scheme. The concerned authorities like Federal Board of Revenue (FBR) should use CNIC (Computerized National Identity Card) for tracing all individuals involved in various kinds of transactions including banking, utility services and buying and selling activities. Notices should be issued to these people through the use of technology with the cooperation of…