[dropcap]M[/dropcap]utual funds play an essential role for channelizing and optimal allocation of idle resources/savings available in the economy of the individual as well as institutional investors. The mutual funds are asset management companies, which invest in stocks, bonds and other types of money market or combination of these securities. The primary goal of mutual fund is pool small savings, use the idle resources in corporations and invest in a well-diversified portfolio of securities, which would allow the investor to significantly reduce, or even eliminate the asset specific (non-market) risk of securities. The presence of these mutual funds becomes even more…
Author: Ahsan Nisar
[dropcap]T[/dropcap]he power sector in Pakistan is a mix of hydel and thermal units dominated by two vertically integrated public sector utilities that are Water and Power Development Authority (WAPDA) for all of Pakistan except Karachi, and the K-Electric (formerly KESC) for the city of Karachi and its surrounding areas while there are a number of independent power producers that contribute significantly in electricity generation in Pakistan. For years, the matter of balancing Pakistan’s supply against the demand for electricity has remained a largely unresolved matter. Pakistan faces a significant challenge in revamping its network responsible for the supply of electricity.…
[dropcap]O[/dropcap]ver the past 10 years, a little over a dozen Pakistani brands were launched in the global marketplace. Inspired by their success, many more are now aspiring to explore new possibilities overseas. If the trend picks up, it can help push up exports of the value-added, high priced quality products. While securing a place in a crowded global marketplace is difficult, the lack of respect for intellectual property rights (IPR) in the country makes the task more daunting. Pakistan’s perception as a violator of IPR does not help local firms amid not so conducive international environment. Some food and beverage…
[dropcap]P[/dropcap]akistan’s economy has rebounded in recent years, with improving security across the country fueling economic growth. Pakistan was the world’s fifth highest-returning stock market in 2016, but the growth was driven by local investors, with the bourse eager to attract more foreign inflows. The market capitalization of the PSX is around $90 billion, although only about a quarter of that is freely tradable. Pakistan’s bourse was boosted last year when the country’s stock market was reclassified to be included in the MSCI’s emerging market index category. In December 2016, the average daily value of trades stood at about $200 million,…
Vibrant and stable financial sector and capital market play a significant role in the economic growth of a country. This, however, is only possible in the wake of a wide range of saving and investment products being available to meet the risk appetite of investors and the funding needs of borrowers. Unfortunately, this is not the case in Pakistan where the banking and non-banking financial sectors have not performed up-to the mark on this account. Even the banking sector despite having dominant position and privatization has not come up with major innovative products to adequately meet requirements of both depositors…
[dropcap]O[/dropcap]ccupational violence is a worldwide, multifaceted problem affecting all industries, including healthcare. Frequency of hospital violence exists beyond news headlines and television shows impacting significant number of care providers and patients. Hospitals at one time were much like mosques and schools and were considered somewhat sacred. Unfortunately, that’s not the case anymore. Previously, violence had only been addressed as a criminal, psychological, anthropological or sociological problem. The most frequent form of occupational violence was verbal abuse, followed by threatening behavior, physical violence, and obscene behavior. Violence is increasing in hospitals because: 1. Doctors are no longer thought of as ‘miracle…
Life insurance against non-life segment taking much interest [dropcap]T[/dropcap]he insurance market in Pakistan is poised for rapid growth as the economy expands and diversifies, leading to greater demand for insurance products and higher rates of affordability among the enormous potential consumer market. However, structural challenges will continue to hamper the market from reaching its full potential. Poverty rates are high, as are informal employment rates, and this lessens demand for retirement and other life products. The non-life sector remains heavily reliant upon basic lines and in a fragmented and disjointed marketplace there is downwards pressure on pricing and limited profit…
[dropcap]T[/dropcap]he rising oil prices are the major concern for all the developing economies and Pakistan is suffering from it too. Petroleum products account for a substantial portion of Pakistan’s import bill. In 2011-12, Pakistan imported $18.9 billion worth of crude oil but courtesy of the steep fall in the commodity’ international price, oil imports came down to $7.9 billion in 2015-16. The savings on oil import enabled the country to increase the purchase of machinery and other capital equipment essential for development without having the current account deficit shoot up. Not only that, low oil prices were instrumental in keeping…
[dropcap]C[/dropcap]onsumer financing has seen a surge in the last two fiscal years primarily due to a big jump in auto loans and to some extent in mortgage finance. Consumer finance serves as the source of financial stability and uplifts the economic and social status of the household. At the macroeconomic level, consumer financing has significantly contributed to economic turnaround by stimulating consumption and investments. There has been a phenomenal increase in private consumptions due to easy availability of credit from banks. Low interest rate spread is an important indicator of the efficiency and competition in the financial systems and helps…