[dropcap]H[/dropcap]istorically, the Pakistan Stock Market (KSE100) reached an all time high of 52876.46 in May of 2017 since a record low of 538.89 in June of 1990. At the close of the last session of the year 2016 the Pakistan Stock Exchange (PSX) was calculated to have provided total return of 46 percent for the year. This put Pakistan as the best performing market in Asia and the fifth best among the world markets. The PSX return of 46 percent also stood out as the best in MSCI Frontier Markets and compared favourably with the PSX average gains of 20…
Author: Mohammed Arifeen
[dropcap]T[/dropcap]he 2016 top Chief Executive Officers (CEOs) classification is quite different from last year’s. In the following categorization list of ‘Top CEOs of Pakistan in 2016’, has taken into account the policy choices and business decisions based on the trends and forces at work in Pakistan and in the region, weighing both opportunities and obstacles that come along. It has been the objective to avoid including family owned businesses in the list. NADEEM HUSSAIN — TAMEER MICROFINANCE BANK Nadeem Hussain is the Founder and has been the President and CEO of Tameer Microfinance Bank (TMB). The bank is pioneer of…
China emerged as the top investor during the last three years PAKISTAN FOREIGN DIRECT INVESTMENT 2010-16 [dropcap]F[/dropcap]oreign Direct Investment in Pakistan increased by $2761.10 million in 2016. Foreign Direct Investment in Pakistan averaged $2651.26 million from 2010 until 2016, reaching an all-time high of $3184.30 million in 2010 and a record low of $2099.10 million in 2012. FDI INFLOWS IN 2015-16 State Bank of Pakistan (SBP) latest data indicated that the FDI inflows in 2015-16 rose 39 percent to total $1.281 billion, up from $923 million in 2014-15. The volume should be appreciated in the context of the fact that…
[dropcap]A[/dropcap]t least 40 projects have been identified under the $47 billion China-Pakistan Economic Corridor (CPEC) framework. Pakistan recorded a gross domestic product growth of 4.7 percent in the last fiscal year that ended in June 2016, and the country’s economy is predicted to expand by 5 percent. Pakistan’s security situation has improved in recent years after the Army has driven out militants and organized crime. The Overseas Investors Chamber of Commerce & Industry conducted a security-related survey of its members last June that showed 90 percent of respondents perceived general threats to business to have declined since August 2013. China…
Some foreign, multinational companies buying Pakistani companies to advance growth [dropcap]A[/dropcap]ccording to the State Bank of Pakistan repatriation of profits and dividends of multinational companies and foreign firms in Pakistan reached close to $1.5 billion during the first 10 months (July-April 2017). The best profits and dividends were going out from the financial business (banking) as the repatriated amount from this sector reached $233 million while the inflow was just $23 million during the 10-month period. The second highest outflow was from the telecommunication sector as the amount of reverse remittances reached $163 million while FDI during this period was…
[dropcap]P[/dropcap]akistan faces gender disparity at various social levels. The country ranks 143 out of 144 in the Global Gender Gap Report of 2016 in terms of economic participation and opportunities for women. This global ranking has been unchanged since 2015 because of the complexity surrounding the socioeconomic factors like employment, financial inclusion, business and asset ownership. More than 126 million women are currently running businesses in the global economy and one billion women are expected to enter the global workforce in the coming decade. Pakistani women are still struggling to find their footing and unfortunately there are very few women…
[dropcap]W[/dropcap]omen are throughout the world performing productive roles in all spheres while the agriculture sector is exceptional. Women play a pivotal role in agriculture as about 70 percent of the agricultural workers 15 percent of those who process basic food are women. They comprise 41 percent of the world’s agricultural labour force, which rises to 78 percent in some countries. The fact is that women produce a larger share of food in the developing world, in various rural societies; unfortunately they eat less than men do. Village women play a key role in agricultural sector production. They work vigorously in…
An inspiration to our community and to teachers worldwide [dropcap]S[/dropcap]alima Begum, a Pakistani teacher born in remote village of Gilgit-Baltistan, has made it to the top ten finalists of Global Teacher Prize 2017. The Global Teacher Prize is a one million dollar award for an exceptional teacher who has made an outstanding contribution to the profession. To be considered for the prize nominees must be regarded as ‘exceptional teachers’ who have made an outstanding contribution to their profession. Salima Begum is one of just 10 teachers around the world to be nominated for the prestigious Global Teacher Prize by the…
[dropcap]T[/dropcap]he Kachhi Canal project, almost an abandoned project, brought back on track this month after active support of the federal government and excellent work by Water and Power Development Authority (WAPDA) engineers. The project was re-energized and is likely to be operational soon. Following completion of the first phase of the project, the WAPDA recently began filling up the 363-kilometre-long main canal with water. Located in Punjab, it is a 363 kilometer long canal, out of which 281 kilometer is in Punjab and 80 kilometer is in Balochistan. It starts from Taunsa Barrage at Indus River. Cost of the project,…
[dropcap]N[/dropcap]ew five-year auto policy, announced by the Ministry of Finance, Government of Pakistan in March 2016, seems to be very much eventful as far as the automobile industry in Pakistan is concerned. The government’s new auto policy is now focused on new entrants of the car makers offering benefits to them with little tax burden amid inviting competition amongst the existing assemblers in the automobile sector. In the backdrop of the surge in passenger car sales that recently crossed 200,000 units for the first time in Pakistan, all of the country’s automakers are planning production increases to satisfy brisk domestic…
[dropcap]T[/dropcap]he auto industry is considered as the heart of the manufacturing economy. It is one of the biggest providers of different kinds of jobs. The new auto policy introduced in the country will bring tremendous growth. For Indus Motors, it is an opportune time to expand their vision. As the industry is entering into greater competition, Indus Motors remained a mainstay in the country’s car industry. INDUS MOTORS COMPANY LIMITED HISTORY Indus Motors Company Limited was incorporated in 1989. It is a joint venture agreement between House of Habib of Pakistan, Toyota Motor Corporation and Toyota Tsusho Corporation of Japan.…
[dropcap]A[/dropcap]s per the latest reports from Pakistan Automotive Manufacturers Association (PAMA) about 1 million units have been produced over the period from July 2016 to March 2017 out of which about 51 percent of the motorcycles have been produced by the Japanese giant Honda Atlas. There are more than 60 motorcycle makers in the country with Atlas Honda still leading the market by a notable margin. Motorcycle manufacturers produced over 175,000 motorcycles per month on average, indicating a rapid increase in the usage of the transport vehicles. The local motorcycle industry comprises of three major Japanese players which include Atlas…
[dropcap]T[/dropcap]he cost of construction rose 10 percent in the outgoing year due to increase in cement and steel bar prices, and due to the impact of depreciating rupee on imported construction material. Property prices have gone up. The price of a new apartment having three bedrooms has jumped 10 percent on average. In 2016, as many as 100 new apartment projects were launched in Karachi compared to only five projects in Lahore and Islamabad combined. Overall construction activity in the preceding year remained relatively slow, mainly because of delay in approval of new projects. However, the prospects of property business…
[dropcap]T[/dropcap]he real estate sector in Pakistan is an important sector of the economy. Pakistan spends about $5.2 billion on construction annually and construction output accounts for 2 percent of GDP. have been observed in Pakistan’s real estate market in the past few years. A bullish trend has been observed in the last four years followed by a price hike in the last one year. In 2015, investment in residential property increased by five to seven percent. Pakistan has emerged as the third largest real estate investor in Dubai. India is placed second in the list of top 10 investors in…
[dropcap]T[/dropcap]he cement sector registered a cumulative growth of 45 percent in the month of July 2017 compared to the corresponding month last year; with domestic consumption increasing by a phenomenal 55 percent and exports by 2.28 percent. The turnaround, after a poor performance in June 2017, took the industry by surprise and the sharp increase in dispatches in July 2017 revived hopes for the sector. The dispatches were achieved despite political disturbances and unprecedented rains throughout the country which depicts the maturity of the construction sector of the country. Capacity utilization was high at 86.46 percent. It is necessary to…
[dropcap]A[/dropcap]isha Steel Mills Limited (ASML) is one of the largest private sector investments in the value added flat-rolled steel industry. It is a Group Company of Arif Habib. It is a cold rolling complex with a nameplate capacity of 220,000 tons per year. It is one of the largest private sector investments in the value added flat-rolled steel industry in Pakistan. ASML was incorporated in 2005 and its share in cold-rolled steel coils in the country is now over 50 percent. The company has also entered into a strategic tie-up-with Mitsubishi Corporation, Japan to assist in and ensure seamless marketing,…
[dropcap]S[/dropcap]ponsored by reputed Yunus Brothers Group – one of the largest export houses of Pakistan, Lucky Cement Limited currently has the capacity of producing 25,000 tons per day of dry process cement. Lucky Cement Limited (LCL) is one of the largest producers and leading exporters of quality cement in Pakistan, with a production capacity of 7.75 million tons per annum. The company is listed on Pakistan and London Stock Exchanges. Over the years, the Company has grown substantially and is expanding its business operations with production facilities at strategic locations in Karachi to cater to the Southern regions, Pezu and…
[dropcap]B[/dropcap]ig international car manufacturers are making their way into the Pakistani automobile industry after the current acceleration in the auto sector due to the Automotive Development Policy (ADP) 2016-21 which provides handy opportunities and benefits for companies to invest in the country. In the backdrop of the surge in passenger car sales that recently crossed 200,000 units for the first time in Pakistan, all of the country’s automakers are planning production increases to satisfy brisk domestic demand. According to Nikkei Asia Review Web, new players are also flocking to this market of 200 million, lured by government incentives and the…
GUL AHMED: ONLINE SHOP Gul Ahmed is always presents quality and innovative designs a per new fashion statements. Gul Ahmed has offering top brand like Gul Ahmed Lawn, Gul Ahmed Cotton, Gul Ahmed Normal Lawn, Gul Ahmed Premium Lawn, Gul Ahmed Khaddar, Gul Ahmed Gen’t Shalwar Kameez, Gul Ahmed Signature Series and number of others. Gul Ahmed is a composite textile unit and making everything from cotton yarn to finished products. Excellence in quality and service is the hallmark of all operations performed at Gul Ahmed. Firmly standing by its business values, Gul Ahmed is active in manufacture and sale…
[dropcap]G[/dropcap]oogle is now the world’s most valuable brand. The annual ranking from Brand Finance says Google’s (GOOGL, -0.61%) monetary value increased to $109.5 billion last year, representing a 24% increase overall. By contrast, Apple’s (AAPL, -0.23%) monetary value fell from $145.9 billion in the previous year to $107.1 billion, according to the study. The decrease allowed Google to snag the top spot by about $2.4 billion. “Apple has failed to maintain its technological advantage and has repeatedly disillusioned its advocates with tweaks when material changes were expected,” the study’s authors wrote, who further explained that the tech-giant has “over-exploited the…
Below are reputable Food and Beverage Companies in Pakistan: NESTLE PAKISTAN Nestle Pakistan is the best leading food company in Pakistan. It is one of the top employers in Pakistan, creating jobs in the local economy. The vision of the company is “Good Food, Good Life” and it promises to enhance lives every day and everywhere with best food and beverages. Its main products are Chilled Dairy, Juices, Bottled water, Baby food, Coffee, Culinary & Food, Ambient Dairy and Confectionery. The company is now providing the biggest milk collection system in Pakistan and in this way it is collecting the…
DEMAND FOR POTATO SNACKS ARE ACCELERATING [dropcap]T[/dropcap]raditional eating habits of Pakistanis are changing. Processed foods sales are expanding. International quality snacks are growing, particularly among educated, middle and upper income consumers. Increase in income level and improved living standards changing the habits of consumers. Advertising is also helping to stimulate demand for potato snacks. The Pakistan snacks industry is experiencing an annual growth rate of 20-30 percent per year. Children, teenagers and young people inclination is more towards having snacks. Potato and corn snacks are being a light fast food are becoming popular. Lays has been the largest player in…
[dropcap]D[/dropcap]uring the past few years Mutual Fund Industry has witnessed significant growth. It expanded from Rs 24 billion at the time of establishment of MUFAP in 2001 to Rs490 billion in total assets under management as of June 2016. It is significant to be noted that the industry still is behind in terms of expansion of distribution networks and expansion in products’ range. Despite its very high growth, the mutual fund assets represent less than 5 percent of the total banking deposits. In developed countries, the size of mutual funds exceeds banking deposits. Similarly, assets under management as a percentage…
[dropcap]T[/dropcap]he outgoing fiscal year 2016 turned out to be quite eventful with respect to multiple developments in the capital markets. Pakistan has entered into a new era of equity trading after merger of all the three stock exchanges i.e. Karachi Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange into a single Pakistan Stock Exchange (PSX) during current fiscal year. Also Morgan Stanley Capital International announced the reclassification of Pakistan into MSCI Emerging Markets Index (effective from May 2017) which was taken positively by the capital markets. During the year Pakistan Stock Exchange (PSX) 100-Index reached 38,777 on June 17,…
More public awareness will boost the industry [dropcap]M[/dropcap]utual funds will come up with bank deposits over the few years as more people enter the working class and asset managers increase their presence and product awareness. This view is expressed somehow by mutual experts and has been taken with great interest by middle class people. Experts believe these funds will do well in the coming years though bank deposits are the preferred instrument to save for short-term goals, debt mutual funds can be a better alternative. They are more tax efficient if held for more than three years and can even…
[dropcap]O[/dropcap]ver the last few years, the local mutual fund industry has shown decent growth in terms of assets as well as product offerings. Mutual Fund asset under management of the mutual fund industry, comprises 20 companies, stood at Rs482 billion. Among its three categories, investors have positioned the biggest sum in open-end funds at Rs445 billion, followed by Rs19 billion in closed-end funds and Rs18 billion in pension funds. The mutual fund industry is still in its infancy state as it commands up to just 20 percent of private sector bank deposits. The total sum in mutual funds at Rs482…
[dropcap]UBL[/dropcap] Fund Managers is the leading Asset Management Company of Pakistan offering savings and investment solutions to institutional and individual clients, the company is working tirelessly on digital platforms to increase awareness and help the audiences online with their questions and conceptions about the mutual funds industry. As the mutual fund industry is growing on a daily basis, and is gathering speed with each passing day, the UBL Fund Managers taking timely planning for the innovation of products and keep maintaining the existing products upgrade for all its valuable and upcoming clients. With UBL one can invest in Treasury Bills…
[dropcap]E[/dropcap]conomic sovereignty cannot be safely pursued without a strong and stable economy which is free from the burden of excessive external debt and heavy dependence on foreign assistance. USSR (formerly Russia) loosening economy led to its disintegration. The US is losing the effectiveness of its foreign policy because of rising external indebtedness. China strengthened economy and is pursuing an assertively independent foreign policy to build its defence capability. India is emerging as a regional power only after it achieved a measure of economic stability and strength. Greece was bankrupted because foreign creditors continued to lend despite clear indications for over…
[dropcap]P[/dropcap]akistan cannot achieve its full economic potential without the participation of its entire workforce. Women entrepreneurship and women empowerment plays significant role in the socio-economic development of all under developed countries like Pakistan. Women represent around 48 percent of Pakistan total population, while female employment participation is only 19-20 percent. The observance of Women’s Day at the international level was aimed at highlighting the rights of the females and raise issues like poverty alleviation and provision of employment opportunities. The protection and ensuring the due rights of the women is the priority of every government. Women can play an important…
[dropcap]P[/dropcap]akistan made appearance on the map of the world in August 1947. The founder of the nation Muhammad Ali Jinnah vowed to make it a tolerant and progressive state to protect the rights of minorities. The country will remain independent in its policies and be on good terms with neighbouring countries as well as with the international communities. The distressing economic and security situation of the time required Pakistan to get urgent financial assistance from foreign powers. After the ill-timed death of the father of the nation in September 1948, Pakistan had to face a situation in which it had…
[dropcap]P[/dropcap]akistan 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 can’t 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. LITERACY RATES IN PAKISTAN 1947-2014…
[dropcap]P[/dropcap]akistan’s geopolitical importance cannot be exaggerated. Pakistan is an important country in the stability of South and Central Asia. Neither peace in occupied Kashmir nor lasting peace in Afghanistan will be possible without Pakistan playing a pivotal role. International terrorism can only be effectively fought through close cooperation with Pakistan. As a nuclear power, Pakistan is not only defying the wicked designs of its enemy like but also playing an important role to keep the power balance in the region. There have been unending terrorizations from India through persistent use of soft and hard powers to coerce Pakistan on many…
[dropcap]W[/dropcap]hen insurance accelerate considerably, insurance companies find themselves-committed to huge sums having been insured. They realized that in case of a huge loss, they would go bankrupt. Therefore, the need of reinsurance was felt very keenly, and it came into existence and specialist reinsurance companies were established. Every insurance company now has to arrange for reinsurance before starting business and taking on big commitments. In case of total loss, it will be beyond the capacity of the insurance company to pay this loss. The re-insurers also do not retain all the business which they receive from direct insurance companies but…
Jubilee Life and EFU Life leading the sector remarkably Diversified products added for further development of the sector [dropcap]L[/dropcap]ife insurance is growing and the share of private insurers is increasing. The profit of private life insurers continues to rise as the sector has been in a high-growth mode for the last few years. The sturdy growth is seen in the industry over last five years to six years onwards. The performance of the life insurers to rapid growth in the country’s is due to the rising capital markets. The private insurers have invested heavily in the stock market while due…
[dropcap]T[/dropcap]he former prime minister Nawaz Sharif has launched a state-run health insurance program and described it as the first step towards making Pakistan a welfare state. Around 1.2 million families will get free healthcare facilities in the first phase. People living below the poverty line would be able to get best possible treatment at government’s expense. The program would benefit 3.2 million families living in Punjab, Balochistan and FATA in its two phases. Social mobilization campaign would be launched to ensure registration of all deserving people under the scheme. Most countries in the region, including Afghanistan, have started health insurance…
GENERAL INFORMATION [dropcap]P[/dropcap]akistan Reinsurance Company Limited (PRCL) is a public sector company under the administrative control of the Ministry of Commerce. The company is headed by a Chairman with a nine member Board of Directors. Seven members of this Board are nominated by the Federal Government while others are elected from the business community enjoying excellent business credentials. In addition, the management is supported by a strong team of professionals who handle the business affairs of the company. COMPANY’S ROLE IN ECONOMIC DEVELOPMENT The role of PRCL in economic development of Pakistan is significant. Its awareness of increasing requirements of…
[dropcap]T[/dropcap]echnical, vocational education and skills development increases productivity of individuals, profitability of employers and expansion of national development. It is a fact that countries, such as Singapore, Taiwan, Thailand, Korea, Malaysia and many more have achieved place in the global workplace as well as social and economic gains after they have invested heavily in human resource development during the initial stages of development. Technical, vocational education is the need of Pakistan. For providing young people respectable employment it is necessary that purposeful technical and vocational education be provided. In this context the people use their capabilities in worthwhile activities and…
[dropcap]A[/dropcap]ccording to World Economic Forum Finland has the best education system in the world. Finland is an innovative country when it comes to education and its innovation yields results. Finland’s ranking dropped to 12 in the most recent PISA ranking, it’s still a lot higher than the US ranking of 36. The Finnish test, called the National Matriculation Examination, is taken at the end of high school and graded by teachers, not computers. Students in Finland spend relatively little time on homework, according to the Organisation for Economic Co-operation and Development (OECD). A 2014 study of 15-year-old around the world…
[dropcap]T[/dropcap]he term ‘street children’ include children who either spend the night on the streets, or their livelihood depends on the streets or there are some who work whole day out and return back in the night at home, but there are many children who are homeless and we can found them living, working and begging around everywhere in the country as these street children growing despite efforts to provide basic education and aid and shelter to them. The street children otherwise spend the day selling goods and services and often involved in crimes and use drugs. It is seen that…
[dropcap]L[/dropcap]iteracy rate in Pakistan saw an annual drop of 2.0 percent to 58 percent during fiscal year 2015-16. The decline in literacy rate has been observed in Sindh, Balochistan and Punjab while it remained dormant in Khyber-Pakhtunkhwa (KPK). The literacy rate in Balochistan has dropped to 41 percent in fiscal year 2016 as compared to 44 percent in fiscal 2015. Sindh has witnessed a massive fall of 5.0 percent to 55 percent in fiscal year 2016 as against 60 percent the previous fiscal. The rate in Khyber Pakhtunkhwa has remained motionless at 53 percent since fiscal year 2014 while Punjab…
[dropcap]T[/dropcap]he World Bank, in partnership with the Alternative Energy Development Board (AEDB), has launched a series of new solar maps for Pakistan. These efforts will help to increase the deployment of renewable energy in Pakistan. It will greatly help in expanding access to cheap sources of indigenous energy in Pakistan. With these honest attempts Pakistan becomes the first country to benefit from legalized solar maps under a global initiative on renewable energy resource mapping led by the Energy Sector Management Assistance Program (ESMAP), a multi-donor trust fund administered by the World Bank. In this context Pakistan joins group of mainly…
[dropcap]R[/dropcap]enewable and Alternative Energy Association of Pakistan (REAP) is the first-ever registered entity of the country in alternative and renewable energy sector with a mission to minimize the national dependence on conventional resources of energy by promoting renewable resources of energy in Pakistan. REAP is a non political, non profitable organization to serve the community without any discrimination of cast, creed, clan, gender or religious discriminations. It stands shoulder to shoulder with Ministry of Water & Power and Alternative Energy Development Board (AEDB). As a mission Renewable and Alternative Energy Association of Pakistan (REAP) is committed to uplift a pollution…
[dropcap]I[/dropcap]t was not possible to overcome the energy deficit early due to the fact that there would be almost 5,000MW of power shortage over the months to come, according the competent sources. The government anticipates that this year in summers, power demand would increase by 1,000MW over the last year’s demand of 23,000MW and will go up to 24,000MW. The government has repeatedly stated its intent to overcome load shedding but it has not been able to do so. There is concern about the extent to which the government will be able to tackle load shedding before the upcoming general…
[dropcap]S[/dropcap]olar energy products are becoming very much attractive in our country. Pakistan has commended the use of grid-connected solar energy, rooftop solar installations and mortgage financing for home solar panels to boost uptake of clean energy. Government removed a 32.5 percent tax imposed on imported solar equipment in 2014-15 budgets. The aim was to bring down the cost of installing solar panels. This is a major boost that could accelerate use of solar energy and help Pakistan’s government cut power shortages in the long run. This bold step will increase demand for solar energy across Pakistan and decline the price…
[dropcap]C[/dropcap]hina faced higher energy shortages than Pakistan even then its economy grew at a very rapid pace. China has settled the power deficit by exploring wind power capacity in less than eight years. China continued increasing its wind power capacities, adding over 6,000MW in 2008, 12,000MW in 2009 and 20,000MW in 2014. China and India accelerated their wind energy capacity while Pakistan failed to make any phenomenal gain. Despite having less potential for wind as compared to Pakistan, India is the world’s fourth largest wind-power market and the fifth largest wind power producer in the world after Germany, the USA,…
Bank sees consistency in investment and industry policies must to get sustainability in growth momentum [dropcap]T[/dropcap]he State Bank of Pakistan (SBP) in its recent third quarterly report said that the growth prospects of Pakistan’s economy from 2018 onwards would largely depend on planned infrastructure projects and capacity expansion by industries. It urged for the coordination among institutions including Ministry of Finance, Ministry of Commerce, Ministry of Planning and Ministry of Industries and Production. The Central Bank says consistency in policies, especially those related to investment and industry would be necessary to ensure sustainability of growth momentum. The report also emphasized…
[dropcap]I[/dropcap]slamic banking is accelerating rapidly worldwide. The number of Islamic financial institutions has increased significantly in the Middle East and Southeast Asia. There are also International Financial Institutions in Europe and the United States adopting some Islamic instruments to attract investors who prefer the use of Islamic credit instruments, such as Murabaha, Mudaraba, Musharaka and Ijara. Islamic commercial banks have products similar to those offered by conventional banks. Conventional banks earn their money by charging interest and fees for services. Islamic banks earn their money by profit and loss sharing, trading, leasing, charging fees for services rendered, and using other…
[dropcap]P[/dropcap]akistani banks are encountering number of challenges ranging from historically low interest rates to lethargic credit off-take while menace of interruption from mobile financial services also emerges large. Pakistani banks, have done pretty well financially despite these challenges. Profitability of banks declined in an atmosphere of low interest rates. Return on assets fell and deposits grew minimal at 0.1 percent in the period of Jan-March of this year. The banking sector registered an overall profit-after-tax (PAT) of Rs49 billion in the first quarter of 2017 against Rs52 billion a year ago, depicting a negative growth of 7.2 percent. Despite in…
[dropcap]F[/dropcap]ederal Minister for Finance, Ishaq Dar seems not in a pleasant mood after the local currency plunged against the dollar, for the second time since his term. There is sharp depreciation of the rupee. The Finance Minister described the move as ‘artificial’ by the State Bank of Pakistan (SBP) and later added that it was the result of “miscommunication between a few individuals. Now the country’s external accounts have widened to unsustainable levels, and depreciation in the rupee is unavoidable. The correction in the data reported for the current account showed that the deficit is in fact $1.71 billion higher…
[dropcap]B[/dropcap]asel III will keep banks fairly busy in a variety of ways. It will absorb huge amounts of resources. It will not be only financial ones but also in terms of manpower, management attention, IT-capacity and budgets for external consulting services. It will incur additional indirect costs besides the direct costs of higher equity. Many banks will have to raise new equity. The management board has to decide which form of equity to acquire. It needs preparation, marketing and execution. There will be an issue of shares and cost for lawyers, servicers etc. All these new regulatory measures require calculations,…
[dropcap]J[/dropcap]azz was formerly known as Mobilink–Pakistan Mobile Telecommunications Limited (PMCL). In November 2015, it announced a merger with WaridTel Pakistan, both companies re-launched under the ‘Jazz’ brand name. Both merged companies now collectively serve 50 million subscribers in Pakistan. Jazz has over 8,500 active cell sites in the country, with over 6,500 kilometers of Fiber Optic cable laid. Huawei, Nokia-Siemens, Alcatel and ZTE are the primary vendors for networking equipment at Jazz, including Radio Base Stations, Microwave equipment and network switches Over 20 cities are also covered under Jazz’s recently launched LTE service as well. Jazz uses Ericsson for its…
[dropcap]G[/dropcap]rowth of hospitality industry is highly depended on corporate activities, tourism, youth activities and increase in leisure related activities, which is reliant on the growth and better law and order situation. The Government of Pakistan has various projects underway in the areas of campaigns to decrease corruption, hydroelectric stations and improvement of urban transport systems such as motorways and construction as well as the modernization of airports. Under the current scenario, the internal security situation has remarkably improved as a result of the efforts of the Armed Forces of Pakistan, which has immensely increased public morale and domestic tourism. Pak…
[dropcap]D[/dropcap]omestic franchising industry now comprises around 10 percent of the multibillion-rupee market. Seeing the foreign franchisers prospering the local franchisers are going ahead and making satisfactory progress. Most businesses fail to go for a good start because they are totally dependent on their own and lack enough finances to emerge all the ideas required to make a company successful. The idea of franchising has become significantly attractive to investors and businesses as it helps them to lessen risks and to break even early by letting them benefit from the goodwill and experience of the franchiser. Franchising is an arrangement where…
[dropcap]H[/dropcap]ashwani Hotels Limited (HHL) was incorporated as a private limited company in 1972 and was subsequently converted into a public limited company in 1974. The Company is primarily engaged in the hospitality business in Pakistan and carries the franchise of International ‘Marriott’ chain. It owns and operates Marriot Hotels in Islamabad and Karachi, and Zaver Pearl Continental hotel in Gwadar. In addition, the company owns and operates Ceramics production unit in Hub, Balochistan. It employs over 1,400 employees at different locations. The Company commenced its commercial operations in 1978, with the launch of Holiday Inn Islamabad under the franchise agreement…
[dropcap]T[/dropcap]he 2017-18 budget is designed for election year. It is of little value to the economy’s health in the medium to long term. Finance Minister Ishaq Dar unveiled Rs4.8 trillion deficit budget. It presented a budget deficit target, which is Rs217 billion higher than what had been agreed with the IMF. The government allocated Rs1.001 trillion for federal development spending, including Rs272 billion for special schemes. Half of the total budget or Rs2.3 trillion will be spent on two major heads namely servicing of soaring debt and defence of the country. The Finance Minister gave relief on agriculture and tech…
[dropcap]S[/dropcap]chool teachers, college lecturers and university professors slammed the government’s decision to increase their salaries by just 10 percent in 2017-18 federal budgets. The school teachers’ representative body, The Punjab Teachers’ Union (PTU), said the 10 percent increase was not supportable. They added that with increasing prices, the government should reconsider the decision. The statement demanded that the government increase salaries by at least 20 percent for employees and raise pensions by 30 percent hike. The government maintained double standards for members of the parliaments and government servants. University teachers also expressed similar sentiments towards the pay rise. They added…
[dropcap]T[/dropcap]he government placed the remittances data for the three quarters of the current fiscal year before the National Assembly, showing a decline in one of the vital sources of foreign exchange, which if not handled properly could adapt into a bigger problem. According to Federal Minister Zahid Hamid, who put the figure before the parliament, an 11 percent decline was also registered in the demand for Pakistani workforce abroad and a large number of those employed especially in the Gulf States have returned home after losing their jobs. He attributed the decline in remittances to falling oil prices in the…
NEARLY 39PC OF PAKISTANIS LIVE IN MULTIDIMENSIONAL POVERTY: UN [dropcap]A[/dropcap] large number of Pakistanis understand that their standard of living has worsened or remained more or less the same. No doubt some says they are better off and likewise small numbers believe that economic conditions have improved somewhat. Frankly speaking the extreme poverty has risen rather than fallen. Pakistan has keenly observed an abnormal decline in poverty that is declining from nearly 35 percent in 2001 to less than 10 percent by 2013-14. The poverty stricken population saw some improvement in living standards. Access to toilet facilities for example has…
[dropcap]M[/dropcap]any of local companies here are still lacking in meeting their Corporate Social Responsibility (CSR) obligations and practices but there are certain other companies that have taken the lead and should be fully praised for their efforts in contributing towards the welfare of Pakistani citizens. It is a religious obligation that business communities in Pakistan must help ameliorate the quality of life of the employees and society at large. Many views that Corporate Social Responsibility means merely paying taxes. Some are of the opinion that it is the contributing to community welfare or donating to organizations for social development purposes…
Certification process with new products modernization set to take place SBP issues Enterprise Technology Governance & Risk Management Framework for Financial Institutions [dropcap]C[/dropcap]apable of prospering in a highly competitive and fast-changing banking world, Islamic Finance industry is making all positive authority and taking market lead both internationally and locally. Substantial growth figures in 2015 in terms of asset growth as well as profits and return on equity shows that global Islamic finance market is beginning to compete with the conventional financial sector. The industry’s total assets moved into negative growth in the 2015 report, after years of double-digit growth up…
[dropcap]D[/dropcap]ubai Islamic Bank (DIB) in 2016 witnessed a phenomenal increase in profitability. Seeing the vast achievement of DIB at both the Group and country level, it outlined a detailed 2017 growth strategy for the franchise in the country. Pakistan is a vital country for DIB Group and the franchise here is an integral part of DIB ever-expanding global operations. From establishment of operations just 11 years ago to a franchise that boasts more than 240 locations across 62 cities in Pakistan and its phenomenal growth DIB are all extremely proud of. Dubai Islamic Bank Group sees Pakistan as a significant…
[dropcap]W[/dropcap]allStreet Exchange Company (Pvt) Limited was registered and incorporated as private limited company with Securities and Exchange Commission of Pakistan on July 14, 2003. The Company was granted license by the State Bank of Pakistan (SBP) on August 28, 2003 and it commenced its operations in December 2003, as per the guidelines laid down by the Central Bank of the country. From a steady start in 2003-04, the Company has now covered a big ground, and can easily be rated as the frontline and leading foreign exchange company of the country. MANAGEMENT TASK The Company has been established and managed…
[dropcap]T[/dropcap]he Securities and Exchange Commission of Pakistan (SECP) has taken an aggressive lead in strengthening the regulatory framework that protects investors’ interest. It is launching a program to broaden the reach of the capital market investment products to savers across the nation. It is accelerating regulatory approvals for listing of new companies, launching of new products such as REITS (Real Estate Investment Trusts) and Government Debt Securities secondary market trading. SECP has taken a lead in pushing forward with the launch of Small & Medium Enterprise (SME) segments, said an official talking to his scribe. It was disclosed that after…
[dropcap]T[/dropcap]he fiscal year 2017-18 budget is designed for election year objective. It is of little value to the economic health in the medium to long term. Last month, Finance Minister Ishaq Dar unveiled federal budget 2017-18 with a total outlay of Rs4.75 trillion, which is a deficit budget. It presented a budget deficit target which is Rs217 billion higher than what had been agreed with the International Monetary Fund (MF). The government allocated Rs1.001 trillion for federal development spending, including Rs272 billion for special schemes. Half of the total budget or Rs2.3 trillion will be spent on two major heads…
[dropcap]T[/dropcap]he foreign exchange markets are unpredictable. They are complex, volatile and massively impacted by global political and economic events – current and anticipated. For Electronic Retailing (e-tailers) buying stock from overseas consist of two main currency-related issues: Variable true cost of stock purchases, combined with a fixed market price equals unpredictability of returns: When buying stock from international suppliers, moving exchange rates can cause the price you pay to fluctuate. If exchange rates move against you, you may have to pay more amount to acquire the same stock, increasing the cost price of your product. Your prices to the market,…
[dropcap]P[/dropcap]akistan’s economy surged past the $300 billion mark in the outgoing fiscal year. The economy grew at a rate of almost 5.3 percent, the highest in a decade, with vigorous support from the services sector. Agriculture blossomed following a slump last year. Its growth rate came in at 3.46 percent, narrowly missing its target. The share of services sector increased to 59.6 percent against 19.5 percent share of agriculture and industry’s share of 20.9 percent. On the whole, the industrial sector is estimated to have grown 5 percent against a target of 7.7 percent and revised growth of 5.8 percent…
[dropcap]M[/dropcap]oney which is a solution of all problems actually becomes the root of all problems for most people, especially for the traveling persons who despite having money in banks unable to make access as while travelling abroad, you are usually short of time and keeping limited amount in hands your main concerns is to get the foreign currency beforehand but number of services are available now in the name of exchange companies. These emerging exchange companies are both helpful and need for future and to take forward run in this business, Dollar East Exchange Company (Pvt) Limited is a leading…
[dropcap]C[/dropcap]hina-Pakistan Economic Corridor (CPEC) is around 3,000 kilometer long trade route from Pakistan’s Gwadar port to Kashgar city in northwestern China’s Xinjiang Uygur autonomous region. The route is comprised of a raft of mega construction and infrastructure projects set to be completed by 2030. The Chinese government promised to finance CPEC with $46 billion investment, out of which around $11 billion is estimated to being spent on building roads and railways infrastructure, while the remaining $35 billion would be poured in energy projects. Once fully completed, the route will provide China with rapid access to the Middle Eastern, African and…
[dropcap]T[/dropcap]he government announced last week it is going to miss the economic growth target for 2016-17 because of an underperformance by the industrial and services sectors. This will be the fourth year in a row that government is failing to meet the annual economic growth rate target. The economy grew at the rate of 5.28 percent against the projected rate of 5.7 percent in 2016-17. It is the fastest pace of growth since 2006-07 when GDP expanded by 6.8 percent. The target was 5.5 percent last year, but the growth rate remained 4.51 percent. Growth targets were also revised downwards…
[dropcap]T[/dropcap]ransparency in the execution of the China-Pakistan Economic Corridor (CPEC) project has become very much important. The people have a right to know what exactly is being negotiated. The government, however, claimed that an ‘abridged version’ of the Long-Term Plan has been shared with key stakeholders, including industry and the provincial governments, and that their feedback has been incorporated. But the transparency of the project still remained one of greater issue for CPEC completion. Around $56 billion under CPEC is a significant amount of money in the Pakistani context and that the question arises whether the process of this magnitude…
[dropcap]N[/dropcap]ew business and employment opportunities will be created under China-Pakistan Economic Corridor (CPEC) projects, particularly in the energy sector as the Pakistan government is utilizing all available resources to provide a useful business environment and promote investment. There is nothing to fear as Pakistan is moving in the right direction and in fact, recently the International Financial Institutions have acknowledged revival of country’s economy. CPEC project would provide employment opportunity to over 700,000 people. China-Pakistan Economic Corridor (CPEC) would create huge employment opportunities in Pakistan and particularly help alleviate poverty in remote areas of Balochistan province. The project would not…
[dropcap]L[/dropcap]ocal manufacturing industries have been finding it hard to influence the local market partially due to price difference between locally manufactured goods and imported goods but collection of multiple projects including Gwadar port development, energy projects, transport infrastructure projects and industrial development projects under China-Pakistan Economic Corridor (CPEC) will have positive impact of the country manufacturing sector. Industrial development projects under CPEC are aimed at development of new industrial zones. This is advantageous because it will boost Pakistan’s GDP while local manufacturing industries in future would be facing unfair and unjust competition from Chinese established industries. It would be impossible…
[dropcap]R[/dropcap]ansomware is a type of malware that encrypts a user’s data, then demands payment in exchange for unlocking the data. Ransomware is a particularly nasty type of malware that blocks access to a computer or its data and demands money to release it. This attack was caused by a bug called WanaCrypt0r 2.0 or WannaCry, that exploits a vulnerability in Windows. Microsoft released a patch (a software update that fixes the problem) for the flaw in March, but computers that have not installed the security update remain vulnerable. The ransomware demands users pay $300 worth of cryptocurrency Bitcoin to retrieve…
[dropcap]C[/dropcap]yber crime involves a computer and a network. Debarati Halder and K. Jaishankar define cybercrimes as: “Offences that are committed against individuals or groups of individuals with a criminal motive to intentionally harm the reputation of the victim or cause physical or mental harm, or loss, to the victim directly or indirectly, using modern telecommunication networks such as Internet networks including but not limited to Chat rooms, emails, notice boards and groups and mobile phones. Cybercrime may threaten a person or a nation’s security and financial health. Issues surrounding these types of crimes have become high-profile, particularly those surrounding hacking,…
[dropcap]P[/dropcap]ak Telecom Mobile Limited (PTML) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) that started its operations in January 2001 under the brand name ‘Ufone’. As a result of PTCL’s privatization, Ufone became a part of the Emirates Telecommunication Corporation Group (Etisalat) in 2006. Ufone currently caters for International Roaming to more than 288 live operators in more than 160 countries. As the world of telecommunications advances, Ufone promises its customers to stay ahead, developing and evolving, to go beyond their expectations. Since its inception, Ufone has focused on the people of Pakistan, empowering them with the most…
[dropcap]P[/dropcap]akistan’s e-commerce industry will exceed ‘several hundred million dollars’ by 2020. Pakistanis are likely to spend ‘several hundred million dollars’ on online shopping as the country adopts digital technology. Tightened by smartphone penetration and digital payments solutions, the country’s e-commerce industry is anticipated to grow tremendously by 2020. The lucrative impact of information and communication technologies can be seen with the phenomenal rise of ecommerce through websites such as daraz.pk, olx.com, zameen.com and pakwheels.com. Many companies business had grown to the level at which it lacked capacity to compete. In this context the companies had to cut short the list…
[dropcap]T[/dropcap]he rapid increase in telecommunication companies in Pakistan show that the means of communications such as telephone, Internet and mobile communication are growing very fast. Pakistan has become the third telecommunication market that is growing very fast. Telecom organization of Pakistan is fast improving with the foreign and domestic mobile and fixed-line networks investment. Here are some known telecommunication companies in Pakistan. PTCL: In Pakistan, Pakistan Telecommunication Company Limited (PTCL) is the best telecommunication company. This company offers its best Internet and telephonic services throughout Pakistan. This company is the backbone for the telecommunication industry. Different services and data like…
[dropcap]C[/dropcap]ybercrime is fastest growing economic crime according to a PwC report. More than half of UK organizations say they expect to be the victim of Cybercrime in the next two years. It will become the UK’s largest economic crime. UK businesses are battling a huge rise in cybercrime capable of bringing down entire companies, according to analysis by accountancy company PwC. In a report that singled out the UK as a hotbed of economic crime, PwC said the threat of cyber offences was now a “board-level issue”, but warned that not enough companies were taking it seriously enough. PwC also…
[dropcap]I[/dropcap]t is heartbreaking to observe that the current account (C/A) deficit of Pakistan continues to increase. Rising current account deficit has put the exchange rate under pressure and it is affecting the country’s external sector. It shows the country is a net borrower from the rest of the world and uses foreign funds to meet its domestic requirements. According to the latest data released by the State Bank of Pakistan (SBP), the C/A deficit broadened by more than 120 percent to $5.47 billion during the first eight months of the current fiscal (July-February, 2017) as compared to $2.48 billion recorded…
Govt must offer quality education to all through the genuine mechanism including suitable curricula, teaching strategies and proper teacher training [dropcap]T[/dropcap]here is an immediate need to restrict old-fashioned education system of the country. Pakistan needs to make a strategic policy to revamp its outdated education system. There has been a phenomenal rise in the number of private educational institutions in Pakistan. Nevertheless the quality of education imparted by these educational institutions has dropped significantly. Pakistan’s education regulatory body has shut down dozens of PhD programs in a number of universities across the country. The universities have failed to meet the…
Govt use mere 0.9pc of its GDP on health [dropcap]H[/dropcap]ealth aspect of well-being of common people is mostly neglected. Pakistan’s successive governments whether civil or military in its 70 years have not made health a preference while health well being in Pakistan receive little to no space in the agenda of political parties. Pakistan does not show any interest in the well being of the poverty stricken people. This is reflected in the fact that Pakistan spends a mere 0.9 percent of its GDP on health. The public expenditure on health accounts for a little over one-third of Pakistan’s total…
[dropcap]T[/dropcap]he government hinted at a populist budget for 2017-18 with a focus to facilitate people and entice the business sector. It would accord top priority to the wellbeing of the people in the budget for 2017-18. The budget would also focus on measures for further improving ease of doing business and increasing financial inclusion in the country. It would be finalized keeping in view the primary aim of achieving higher, sustainable and inclusive economic growth. The government may announce a series of development schemes and provision of electricity and gas connections to be undertaken during the next year. It is…
[dropcap]P[/dropcap]akistan’s fiscal deficit was bound to increase in financial year 2017-18. The government is likely to set the next fiscal year’s budget deficit target at around Rs1.44 trillion. Owing to general election ahead there will be higher expenditure and relatively low revenues. The International Monetary Fund (IMF) projects that the budget deficit may reach Rs1.5 trillion this year, however, the finance ministry does not seem to be in agreement with the IMF’s projection. The government expects to keep fiscal space owing to the scheduled elections while IMF stresses that Pakistan stays steady on the path to fiscal consolidation. The Finance…
BANGLADESH [dropcap]L[/dropcap]imits to credit-card and personal loans under consumer financing almost doubled to match rises in people’s purchasing power. Bangladesh Bank (BB), country’s central bank, revised the limits after 13 years considering per-capita income. The consumer-product market in Bangladesh has been growing rapidly over the last few years, and rising per-capita income has enabled growth in consumer spending. Per-capita income in Bangladesh was estimated at US$1466 in the fiscal year 2015-16, an over threefold rise since the 2014. Bangladesh has revised the limits for such loans considering the existing market price and the increasing demand for consumer goods. This will…
Registers favorable sales growth in 9 months of this fiscal Licenses to 21 Oil Marketing Companies of Pakistan granted [dropcap]V[/dropcap]arious oil companies have worked hard and established their names throughout the region, competing with each other for better growth, production, and to becoming one of the top petroleum and oil companies in Pakistan, for the country’s prosperous future. Top 10 independent Petroleum & Oil Companies in Pakistan are playing a strategic role in the economic and social development of the country by providing huge employment in the different oil sector of the industry. The companies include, Shell Oil, Pakistan Petroleum,…
[dropcap]P[/dropcap]akistan is an energy-deficit country. It has a huge, demand for natural gas that has hindered economic growth over the years. But the country has recently embarked on an ambitious and aggressive plan to meet its energy needs. We have been keenly observing that the Compressed Natural Gas (CNG) sector of Pakistan is gradually reviving. Motorists have started giving preference to CNG on petrol again, which is an inexpensive and environment-friendly fuel. In order to meet and balance the demand and supply gap the Government of Pakistan will soon stop rationing in CNG sector. Pakistan is heightening imports of liquefied…
[dropcap]P[/dropcap]akistan State Oil (PSO), the country’s largest oil marketing company, reported a 50 percent increase in its net profit at Rs10.27 billion for the year ended June 30, 2016 owing to decrease in the company’s cost of sales. The oil marketing company earned Rs6.93 billion during the previous year exchange. PSO also announced a final cash dividend of Rs7.5 a share, which is in addition to already paid interim cash dividend of five rupees per share. The company posted earnings per share (EPS) of Rs37.81 for the fiscal 2015/16 as compared to Rs25.53 EPS for 2014/15. The result was according…
FIRST QUARTER 2016 (MARCH 31, 2016) The Company has continued to make progress on improving its operational performance during the quarter, registering profitable delivery in all our chosen focus segments. Downward oil price movements continued to impact our otherwise robust operational performance, resulting in a net profit after tax of Rs21 million for the quarter, compared to a net loss of Rs 753 million in first quarter last year. In an import dependent market with fixed margins for motor gasoline and diesel, the extent of inventory losses due to decline in international oil prices is rather large. With the oil…
NINE MONTHS 2016 (MARCH 31, 2016) Your Company continued to build on its operational performance during the period by registering a strong growth in sales volume. The Company earned a gross profit for the third quarter of Rs. 1.88 billion and for the nine months of Rs. 4.22 billion, translating into profit after tax of Rs. 440.2 million for the third quarter and Rs. 549.9 million for the nine months. The earnings per share for the third quarter were Rs. 0.45 and for the nine month were Rs. 0.56, compared to a loss after tax of Rs. 1.2 billion and…
FIRST QUARTER 2016 (MARCH 31, 2016) HALF YEAR 2016 (JUNE 30, 2016) Our sales volumes has increased by more than 45% over the same period of last year and our profit after tax has also increased by almost 19%. The credit for the outstanding performance goes to the management team who have executed the business plan efficiently and exceeded the targets set both in volumes and profitability. Company is in the process of building new storage facilities and by the end of this year our storage facility at Mehmoodkot will be completed and this will tremendously boost our sales in…