Author: Mohammed Arifeen

The present Pakistani rupee price against the greenback is 115, which increased from 110.5 rupees earlier and this current level the Advisor to the Prime Minister on Finance, Revenue and Economic Affairs Miftah Ismail stated that he and the State Bank of Pakistan (SBP) are comfortable with. Mr Miftah Ismail and Abid Qamar, spokesman for the SBP, maintained that the depreciation of rupee was market-driven. However, this is being dismissed as the rupee is not a free float or driven solely by market conditions. It is a managed float, which is defined as interventions by SBP to influence the exchange…

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Pakistan needs unity and harmony. The need for national unity and brotherhood had increased substantially in the current turmoil situation of the country. For the country’s economic and social progress the people of the country need to work together for the solidarity of the country. Pakistan does not lack in talent, we need to be united in order to achieve the goal of becoming the leading nations of the world. Pakistan has produced great intellectuals and scientists who are globally and nationally recognized. Pakistan cannot compete with the developed nations without outshining in the field of science and technology. Terrorism…

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Pakistan should follow an independent foreign policy. For this purpose the incumbent government should make changes domestically. Global changes are taking places dramatically. It is now the opportune time to review the policy and frame an independent foreign policy. Recently the large deal is with the country’s increasing economic dependency on China and Russia’s growing interest in Pakistan. Increasing its economic dependency on other regional states and big power is in no way show that the country is in a position to follow an independent foreign policy. No doubt in many cases Pakistan has openly and vigorously pursued a policy…

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The day is remembered and celebrated every year to commemorate the adoption of Pakistan Resolution by the All India Muslim League in March 1940 at Lahore’s Minto Park (now Iqbal Park) which was presented by A. K. Fazlul Haq. This was the day when Muslims of the Indo-Pak subcontinent committed themselves to achieve an independent state of their own. The Lahore Resolution proved to be a successful long struggle by the Muslims of the subcontinent for their emancipation from the joint British and Hindu domination. It took almost seven years after the Pakistan Resolution that a new Muslim state emerged…

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Nawabzada Liaquat Ali Khan has been the most influential politician in Pakistan’s history. In 1943, Quaid-e-Azam Mohammad Ali Jinnah called him “my right hand”. He is widely known as Quaid-Millat and Shaheed-e-Millat after leading founding fathers of Pakistan, statesman, lawyer and political theorist who became and served as the first Prime Minister of Pakistan. A loyal supporter of Jinnah since 1928, he was appointed by the Quaid as general-secretary of the All-India Muslim League in 1936. He had acquired a considerable amount of experience as a legislator in the United Provinces since 1927 and, since 1941, in the Central Legislative…

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According to Milliman the world’s largest providers of actuarial and related products and services Pakistan’s insurance sector has witnessed continued growth momentum in 2016 while similar growth is expected to be carried forward into 2018. With the appropriate regulatory environment and increasing awareness, there are significant future growth opportunities for insurance business in Pakistan, says Milliman. In 2016, both life and non-life insurance sectors as a whole grew by more than 13 percent measured in terms of annual gross written premium (GWP). For the past five years, both life and non-life insurance sectors, measured by GWP, have been growing at…

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Role of Jubilee Life Insurance for community-based health insurance facilities appreciable The claim to health is an economic, social and cultural right to which all individuals are entitled. Pakistan is far from providing this right to millions of its residents, especially people living in rural and far-flung areas. A report launched in 2016 by the Ministry of Planning, Development and Reform details that nearly 39 percent of Pakistanis live in multidimensional poverty. In 2015, Pakistan signed off the Sustainable Development Goals (SDGs) framed on the human rights focusing on improving healthcare by 2030. Except Afghanistan, Pakistan has one of the…

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Pak-Qatar Family Takaful Limited (PQFTL), the first and largest dedicated Family Takaful Company in Islamic finance industry. PQFTL is a progressive and a technology-driven Shariah-compliant company providing innovative Takaful solutions in Pakistan since 2007. PQFTL is the fastest growing Family Takaful operator in the country. Incorporated in 2006, and beginning operations in 2007, the company is registered with, and supervised by, the Securities and Exchange Commission of Pakistan (SECP). Its independent Shariah Advisory Board chaired by Mufti Muhammad Taqi Usmani certifies all products and operations for Shariah compliance. The company is rated “A” (having Positive Outlook) by JCR-VIS Credit Rating…

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China: (Shareholding rules for insurers to take effect on April 10) China formally introduced new rules to restrict the ownership of big shareholders in insurance companies as it seeks transparent shareholding structures to eradicate control of insurance companies by unknown owners. Under the new rules introduced by the China Insurance Regulatory Commission (CIRC), a single shareholder will only be allowed to hold a stake of up to 33 percent in an insurer, down from the current ceiling of 51 percent. The new rules also prohibit the holding of stakes through proxies. The rules, which take effect from April 10, 2018,…

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We saw two successful tournaments of Pakistan cricket —Pakistan Super League in 2016 and 2017 and now the third edition PSL 2018 of this mega event is opened. There is great advertising opportunities for over dozen of companies to get profit from this event with offering their package and brands. The holder of this premier league of Pakistan, Pakistan Cricket Board (PCB) has many names and brands as its technology partners to make the event successful and profitable both for the Pakistan and the companies participating in it. Here are some of the brands which are making the tournament successful…

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Islamic banking product gaining popularity in the world and both Muslims and non Muslim customers wish to take the services, which are Shariah-compliant based on interest free and profit-taking. Islamic financial products comply with Shariah, or Islamic law, and are based on the principles of risk and profit-sharing. There is a wider adoption of Shariah-compliant products and services. This is a welcome trend that predicts well for the future of the Islamic banking sector. The Islamic banks are concentrating on key areas including innovation and speed of service. About 29 percent of non-Muslim consumers believe Islamic banks offer the best…

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Brands are what the consumers buy. They usually have a trademark which protects them from use by others. A strong brand is a means of making people aware of what the company represents and what its offerings are. A brand, in very brief, can be defined as a seller’s promise to provide consistently a unique set of characteristics, advantages and services to the buyers and consumers. It is a name, term, sign, symbol or a combination of all these planned to differentiate the goods and services of one seller or group of sellers from those of competitors. Some examples of…

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The overall volume of imported used vehicles grew 65 percent to 76,635 units in 2017 from 46,500 units a year ago, data showed. Imports of used cars and minivans surged to 65,723 units in 2017, rose almost 70 percent from 38,676 units a year ago, latest data released by the auto industry shows. The arrival of sport utility vehicles (SUVs) also increased 59 percent to 7,758 units. Imports of pickups and vans registered a 9 percent rise to 3,154 units. Low interest rates, increase in auto financing by banks and lifting of vehicles by investors for cab services boosted the…

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Pakistan is a rising market for automobile and allied industries. The type of these industries plays a pivotal role within the large-scale manufacturing sectors in arousing economic growth. Pakistan occupies an eminent place among the automobile producing countries Pakistan’s automotive industry is one of the oldest in the Asian countries. The industry started production of trucks (Bedford) in 1949 by (General Motor). Its market has been overtaken by other countries in Asia such as China, Thailand and India entered in the market in 1980. Take the example of neighbouring country India auto industry which is one of the largest in…

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In the first seven months of the current fiscal year, tractor sales rose 45 percent year-on-year to 38,173 units, according to data of the Pakistan Automotive Manufacturers Association (PAMA). The lion’s share went to two main sellers, namely Massey Ferguson and Fiat, which sold 23,263 and 14,776 tractors, respectively. The reasons behind rising sales are the revival of the crop sector in the last three years, and the massive road infrastructure development under the China-Pakistan Economic Corridor (CPEC). The rise infrastructure development contributed 70 percent to the revival in sales. Rice and sugar cane have particularly helped the tractor industry.…

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Atlas Honda Limited (AHL), Pakistan’s leading motorcycle manufacturer, posted a profit of Rs6.18 billion for the nine months ended Dec 31, 2017, increasing from Rs4.93 billion in the corresponding period last year registering a 25 percent increase. A sharp fall of almost 30 percent in the financing cost was the primary contributor to these positive results. Its sales in the same period stood at Rs56.5 billion versus Rs47 billion in 2016, whereas revenue for the third quarter soared to Rs19.6 billion, up 14 percent compared to Rs17.2 billion in the corresponding period in 2016. The company reported earnings of Rs3.4…

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Liquefied Petroleum Gas (LPG) is a cleaner commodity than petrol, diesel, wood, coal and fuel oil. Pakistan homes taking its best benefit as motorists use LPG in their vehicles, which is cost effective and convenient. LPG is environment-friendly fuel to both middle and lower class consumers and brings huge revenue for the government and providing employment to millions. It reduces air pollution by 90 percent in comparison to traditionally burnt biomass and can cut the consumption of fossil fuel, coal and wood etc. At present, LPG is mostly used by domestic consumers for cooking purposes where supply of natural gas…

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The Compressed Natural Gas (CNG) sector would be fully revived with increased import of Liquefied Natural Gas (LNG) during the next two years. Around 3,200 CNG stations were operating in 2012 when natural gas supply to the outlets was stopped due to scarcity of the commodity, but now after May 26, 2016 around 2,300 stations have restarted their operations. A number of private sector investors are taking keen interest in setting up LNG terminals and import of the gas. It is hoped that in next two years Pakistan would have the market of one bcfd (billion cubic feet per day)…

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Pakistan is seeking to add 5,770 megawatts of electricity to its national grid by 2018 as the energy crisis been faced by the country is overdue, which has obstructed growth and forced many factories to close. Pakistan currently produces about 15,886MW against the demand of 19,500MW, leaving the gap of over 3,500MW. The shortages rise to nearly 6,000MW during peak summer season. International donors estimate energy shortage, including gas shortages, undercut between 1 to 2 percent of GDP every year. Due to rooted energy shortfall, Pakistan’s textile sector takes the most hit which accounts for over 50 percent of the…

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After registering a 10-year high growth of 5.7 percent last year, large scale manufacturing (LSM) has taken an even better start in the first two months of this fiscal year. In July-August this year, annualized increase in LSM output heighten to 11.3 percent. The LSM growth in the last fiscal was basically driven by domestic demand, this year’s growth momentum is also likely to come from export-led requirements. Exports have showed improvement. In July-September fiscal year 2018 exports rose around 10.84 percent over the same period of fiscal year. Export-led demand is there. It is going to increase by inculcating…

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It must be remembered that CPEC (China-Pakistan Economic Corridor) is not just a transit route for Chinese exports but it holds a comprehensive plan to overcome economic issues such as unemployment, the energy crisis, the underdevelopment of national infrastructure. In the past five years, China-Pakistan trade has continued to grow rapidly, with the annual growth rate of 18.8 percent on average. Bilateral investment has also been soaring, and China has become one of the biggest sources of foreign capital for Pakistan. International economic and technological cooperation has shown strong momentum. The flow of economic factors in both countries along the…

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At the time of independence Pakistan was basically agriculture based country. Pakistan turned into more diversified country as industrialization took hold. Although the share of agriculture had declined substantially since its birth the role of agriculture in the economic development of Pakistan cannot be denied and Pakistan is still an agricultural country. Agricultural sector provides food to consumers and fibre to the industry, earns foreign exchange, and provides a market for industrial goods. The share of agriculture in gross domestic product (GDP) has declined since independence, falling from 53 per cent in 1949-50 to 19.8 percent in 2016-17. From 1947…

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In this year high GDP growth in Pakistan will help control the inflation. There is increase in macro sectors of the economy with massive CPEC investment and an improvement in security and power supply. The acceleration in economic growth may affect well for the masses. Democracy will be strengthened with the strong economy in 2018. The loan repayment obligations may be scaring. Pakistan may find itself back in the IMF fold. There will be expansion in the job market and there will be improvement in job situation and salary increase for the working class. The inflation will go up but…

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Pakistan would miss the export target of $35 billion this year by June 2018 set in the three-year Strategic Trade Policy Framework 2016-18, but after failing to meet the target the government will try to achieve the target in the new trade policy, but this time the timeframe will be for five years from 2019 to 2023. Experts see major causes of the policy failure are lack of diversification of exports, little innovation and value addition in export goods, insignificant research to know latest consumer needs and failure to find new markets. If the same level of growth is maintained…

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Keeping view of various issues related to the export of kinnow (orange) to Russian and Iranian markets, this year’s export target has been revised downwards. During the current season, which started from December 1, the Pakistan has set an export target of 250,000 tons compared with last year’s exports of 280,000 tons. Pakistan would be able to export just 12.5 percent of its annual kinnow production. This year’s total anticipated production is 2,000,000 tons. The production of kinnow during the current season is anticipated to be between 1,900,000 tons to 2,000,000 tons. Iran like Russia is a big market of…

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The country remained unsuccessful to overcome challenges on the external front where import figure continued moving upward where as the exports stayed behind as calculation in the six months of this fiscal year shows that Pakistan’s trade deficit rose to $18 billion. The Ministry of Finance and the State Bank of the country were optimistic that the country would soon be able to overcome challenges on the external front, however, results of the first quarter have hit these expectations as imports are still growing at double the pace of export growth. The latest figures showed, the trade imbalance had recorded…

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Pakistani banks have been focusing more on the consumer financing since last two fiscal years. According to State Bank of Pakistan’s (SBP) data net consumer financing of Rs31.2 billion in 2014 and Rs31.3 billion in 2015 had been made by the banks. Till the end of the fiscal year in June 2015, net new housing loans totaled about Rs1 billion against this, net auto loaning, which makes up the bulk of consumer finance, stood close to Rs10 billion. A rush in housing loans seen during the fiscal year is strong enough to keep up growth trend in overall consumer financing.…

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Flamboyant financing product Car Ijarah of Meezan Bank is Pakistan’s first interest-free finance based on the Islamic mode of Ijarah (leasing). This product is ideal for individuals who want to acquire a car without any interest. Car Ijarah works through a car rental agreement, under which the Bank purchases the car and rents it out to the customer for a period of 1 to 7 years, agreed at the time of the contract. Upon completion of the Ijarah period, the vehicle will be sold at a token amount or gifted to the customer. Key features Lowest Up Front Payment Rental…

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ORIX Leasing Pakistan Limited (OLP) was established in July 1986 as a joint venture between ORIX Corporation, Japan and local investors. ORIX Corporation is an integrated financial services group based in Tokyo, Japan, providing innovative value added products and services to both corporate and retail customers. It is listed on Tokyo and New York Stock Exchanges. With operations in 26 countries and regions worldwide, ORIX’s activities include corporate financial services, such as leases and loans, as well as automobile operations, rental operations, real estate related finance, real estate development, life insurance and investment banking. By pursuing new profit-earning opportunities through…

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Founded in the year 2000, Khushhali Microfinance Bank Limited (formerly known as Khushhali Bank Limited) was a part of the Government of Islamic Republic of Pakistan’s Poverty Reduction Strategy and its Microfinance Sector Development Program (MSDP). MSDP was developed with the facilitation of Asian Development Bank (ADB). With its headquarters based in Islamabad. Khushhali Microfinance Bank (KMBL) operates under the supervision of the State Bank of Pakistan (SBP). The Bank’s board comprises of seven members including leading commercial bankers, fund managers and microfinance experts from across the globe. Purpose Being a commercial based microfinance institution, the bank purpose is to:…

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International brands are making fine entry into the Pakistan’s lucrative market by opening their franchises in mega cities and towns. Currently, Xiaomi, a Chinese brand and the world’s third largest smartphone maker made entry into the Pakistani market, a booming market of mobile consumers worth 40 million. This China’s most popular smartphone brand has partnered with a Pakistani company Smart Link Technologies for distribution and after-sales service, according to officials of company. Xiaomi plans to launch popular smartphones Redmi Note 4 and the Redmi Note 4A, and bezel-less arge Mi Max in the Pakistani market. Vivo, another Chinese brand, plans…

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E-commerce industry in Pakistan is in growing stage where a lot of space in products and services still exists. E-commerce is not much different than conventional commerce where supply and demand plays a vital role for growth. The demand is still quite low in Pakistan if we compare with India. In urban areas the high income people having knowledge of internet and technology use online payment systems such as debit/credit cards, have friends and relative who make purchases online. Almost 95 percent of UK populations buy goods or services from the internet retailers. But people in Pakistan have preconception of…

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The women entrepreneurship has been mostly acknowledged as an important source but untapped while their much participation is essential for economic growth and development of the country’s economy. The number of women entrepreneurs, ratio of women chief executives in the corporate sector and the share of women in the holding of corporate ownerships and assets are almost negligible in Pakistan. In Pakistan only 11.8 percent companies have women ownership while in Turkey is 25.4 percent; this is 62.9 percent in Philippines, Indonesia 22.1 percent, 29.2 percent in Uzbekistan, 32.7 percent in Tajikistan. World Bank recently reported that Pakistan ranks lowest…

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There are many types of rice known to the world and in this wonderful world which is full of thousands of varieties of rice, Basmati is only one superior quality of rice and is also called the prince of rice. Over half of the world’s population depends on rice consumption. It is remarkable to see that every country harvest and produces rice in their own way depending on their customs but Basmati name is well known and famous in Asia especially in Pakistan for its huge growth. Pakistan is vastly known around the world for the rice it produces, especially…

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About Tapal Tea (Pvt) Limited Trust in Each Other We believe that trust is the foundation of our business actions. We believe that honesty is absolute and that integrity cannot be compromised. All our actions are guided by fairness and sincerity of commitment. Outstanding Quality We believe in dedicating ourselves to achieving an outstanding quality in all our activities. Excellence is a journey, not a destination. Quality is a way of life for us. Passion for Creativity We are open to novel ideas in every aspect of our business of choice. We believe in providing an environment which supports individual…

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Shale gas is becoming increasingly important source of natural gas across the world with estimates of more than 15000 trillion cubic feet (TCF). USA and Canada, being self-sufficient leading the market with significant amount of shale gas production. Areas around the world have identified technically recoverable shale gas and more is being explored each day. In a report by US Energy Information Administration (EIA), Pakistan is listed among the top 10 countries of the world with the largest shale oil reserves. LMKR Resources has been actively involved in conducting research studies on the potential of shale gas in Pakistan. Shale…

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Pakistan has witnessed extraordinary growth in petroleum sector during the past four years as the credit goes to the present government who encouraged oil and gas Exploration and Production companies by providing them maximum incentives to step up exploration activities in potential areas across the country, official sources quoted as saying. Oil and Gas Exploration and Production companies drilled over 179 exploratory and 194 appraisal wells resulting in one hundred and one new discoveries during the past four years, which is eighty percent higher than the finds made during the same period of the previous government. According to the official…

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Oil and Gas Development Company Limited (OGDCL) has found new oil and gas deposits in Chabaro-1 well located in Khewari block in Sindh. OGDCL is the operator of Khewari block while Government Holdings Private Limited is a partner in the joint venture. They have 95 percent and 5 percent stake respectively in the block. The discovery of Chabaro-1 is the result of an aggressive exploration strategy adopted by the company. It has opened up a new avenue and will add to the hydrocarbon reserves of OGDCL and of the country. The exploratory well was drilled down to the depth of…

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Pakistan had successfully tapped international capital market four times since 2014 and each time received overwhelming response. This is termed the event an excellent way of showcasing rich cultural diversity and abundant opportunities, a growing and developing Pakistan offered to young entrepreneurs. In 2013, the country was facing challenges of unstable macro-economic situation, GDP growth at only 3 percent, foreign reserves of below US$8 billion, spiraling circular debt, crippling energy shortages and fiscal deficit of 8.8 percent. The government set priorities right by focusing on 4 Es including Energy, Economy, Elimination of extremism, and Education. The country is now backing…

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The incumbent government must play a strategic role in encouraging Corporate Social Responsibility (CSR) in Pakistan. This can be done by creating an environment stable to investment, and by working with the corporate sector for the implementation of community development programs at the primary level. The private sector, several public sector organizations had also given the significance to the CSR value and now contributing a lot for welfare of country and its people. Both local and international enterprises are paying great attentions on CSR in Pakistan and had developed their CSR departments for effectively implementation of CSR policy by providing…

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The Securities and Exchange Commission Pakistan is facing a difficult task in developing the capital market. In Pakistan the savings rate is only 13 percent of the GDP and there are only around 250,000 investors; a bulk majority of whom are based in the three large cities e.g. Karachi, Lahore Islamabad. If other countries are compared with almost same GDP as Pakistan such as the Philippines, it will be observed that the number of individual investors there is more than double i.e. 600,000. It is especially important for a country like Pakistan where savings rate is just 13 percent of…

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Pakistan’s economy has shown improvement during the last three years due to better planning, and continuity in economic policies. The government has concentrated on youth skill development and Technical, Vocational Education and Training (TVET) sectors for giving the youth market-based skills. Government initiatives like CPEC, macro-economic stability, youth business loan schemes, BISP, Prime Minister’s Youth Business Loan Scheme, Interest Free Loan Scheme to the vulnerable and poor, Prime Minister’s Youth Training Scheme, Prime Minister’s Hunermand Pakistan Program and Prime Minister’s Youth Skill Development Program through NAVTTC, Promotion of overseas employment and encouragement of entrepreneurship contributed a lot in achieving the…

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Basmati exporting countries to EU to bring down MRL level for Tricyclazole to 0.01 mg per kg from Jan 1, 2018 Pakistan can enhance its rice export to EU from 150,000 ton to 350,000 ton Pakistan’s rice exports witnessed a decline of around 14 percent during the last fiscal year due to lack of research and non availability of new seeds. In Pakistan rice was the second largest foreign exchange earning commodity with $2 billion exports, however, at present it ranks fifth as the rice trade is facing severe crisis and exports continue to decline. The future of rice exports…

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Millers claim that wheat is Rs400 costly in Pakistan than the world market. The wheat price has registered a sharp increase of more than 300 percent in last ten years from Rs400 per 40kg to Rs1300 per 40kg, registering a climb of over Rs2,250/40kg. The wheat rate in Pakistan is highest in the world as staple food is available at Rs900 per 40 kg in the world market. It is more than Rs400 costly as compared to the world market. Even in India the wheat support has been announced at Rs950 per quintal. One of the major reasons for the…

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The Sindh government has fixed sugarcane price at Rs180 per 40 kilogram for crushing session 2017-18. The sugar factories in the province are directed to pay quality premium to the cane growers at the end of the crushing season 2017-18 at the rate of fifty paisa per 40 kilogram, cane for each 0.1 percent (including fraction thereof to be calculated prorate) of excess sucrose recovery above 8.7 percent determined on over all sucrose recovery basis of each mill. The sugar industry urged the government to reinstate export subsidies after a steep fall in global sugar prices. Without revenues from exports,…

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Almost two years earlier Brent crude oil prices were at low $27.88 a barrel in January 2016 and 11 months down the lane prices are hovering around $55 and throughout 2017 prices of Brent crude oil spot prices is at a current level of 64.61 up from 53.93 one year ago. Since the start of the year, Brent and WTI have risen by 17 and 12 percent, respectively, although the price rises from mid-2017 are much stronger, at nearly 50 percent. On the supply side, Brent prices have been supported by a year of production cuts led by the Organization…

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The number of patients suffering from Hepatitis C virus (HCV) disease continues to rise and the disease is becoming a major health hazard. Pakistan has the world’s second highest prevalence of Hepatitis C while Egypt occupies the first position in the prevalence of Hepatitis C. According to the World Health Organization (WHO) data, an estimated 325 million people worldwide are living with chronic Hepatitis B virus (HBV) or Hepatitis C virus (HCV) infection. The WHO Global Hepatitis Report, 2017 indicates that the large majority of these people lack access to life-saving testing and treatment. Thousands of people are at risk…

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The International Labor Organization (ILO) has warned that the growth rate of the available work force shall exceed the rate of job creation. Million more people will become unemployed in 2018. A further increase to the figures carried over from 2016 to 2017, a period in which the ILO has estimated that the global unemployment  rate will rise from 5.7 to 5.8 percent. The increase in unemployment levels in 2017 is caused by the deterioration of labor market conditions in emerging countries. The effects of various deep recessions that took place in 2016 have affected and will continue to affect…

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Although the banks have made less profit than last year even then they are healthier in all respects. The balance sheets have built up, except for, the lone HBL affair that led to some weakness in solid indicators and equity base. Less than normal seasonal fall in advances along with improved liquidity and strong solvency well above the minimum benchmark, are the key highlights of the banking sector in the third quarter of calendar year 2017, according to the Quarterly Performance Review (QPR) of the banking sector for the quarter ended 30th September 2017, released by State Bank of Pakistan…

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The International Monetary Fund (IMF) has stated that Pakistan should concentrate on two mainstay of economy namely tightening of fiscal deficit and external side. IMF Mission Chief at the conclusion of post-program monitoring of $6.64 billion External Fund Facility (EFF) stated pre-election phase could bring some difficulties. It is hoped that the government will take necessary steps to ensure stability throughout this period. The IMF stated that in that context State Bank of Pakistan (SBP) allowed adjustment of exchange rate in the past few days. The IMF has nothing to do with this and this is an independent policy decision.…

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Pakistan’s trade deficit widened in just four months due to increasing imports of the country putting further pressure on the foreign exchange reserves. Trade deficit had recorded $12.1 billion during first four months (July to October) of the ongoing financial year as against $9.2 billion of the corresponding period of the last year showing an increase of 31.24 percent. Pakistan’s exports had registered at $7.1 billion during July-October of 2017-18 as compared to $6.4 billion of the corresponding period of the last year showing a growth of 10.04 percent. The imports had also shown an increase of 22.55 percent and…

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In the inter-bank market, rupee was available in terms of dollar for buying and selling at Rs 106.75 and Rs 107.25, dealers said. The national currency shed 20 paisas against the dollar for buying Rs 107.50 and it also lost 50 paisas for selling Rs 108.00. In the Open Market Pak Rupee depicted high and low of Rs 109.50 and Rs 105.55 respectively, however, the PKR-US$ exchange rate in the interbank market closed at Rs 107 per US$. The rupee, however, gained 40 paisas versus the euro for buying and selling at Rs 125.60 and Rs 126.85. Sterling rose while…

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Pakistan’s external sector is in under serious trouble as the current account deficit has increased drastically. Due to this crisis, foreign exchange reserves of Pakistan have decreased to $13.85 billion as of September 29, 2017. The challenges to Pakistan’s external sector remain far from over. The government was considering depreciating rupee by 9 percent. It was also considering Rs10 against US dollar or to increase the scope of 100 percent cash requirement before goods are imported. The Finance Ministry opposed this proposal on the grounds that rupee depreciation will increase the burden of external debt on the federal budget. The…

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Last week, Trump’s comments and North Korea’s threat to launch a missile attack on Guam increased geopolitical risk and led to a rise in the value of safe haven assets. The Japanese yen rose to 109. The euro fell from 1.19 to 1.17. Despite the OPEC meeting in Abu Dhabi, the Canadian dollar has been hammered down to 1.27. This leads to believe the US Dollar Index can well rise to 95. The Indian currency traded at around 65.40 as against 67.90 in the beginning of January. The Indian rupee is expected to see further depreciation in the coming months…

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The Sri Lankan rupee is anticipated to fall more this year. The central bank of Sri Lanka will not protect the rupee at the cost of external reserves. The rupee depreciated 2.3 percent during the first six months of 2017, largely at the expense of external reserves. Sri Lanka expects a further 2-3 percent depreciation given the government’s borrowing needs and a rising fuel import bill. The rupee depreciated 4 percent in 2016 due to increased imports, continued foreign debt service payments and outflows from government securities following the US Fed hike. The receipt of $1.5 billion sovereign bond sales…

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The military ties among Pakistan and United Arab Emirates (UAE) are useful over a long span of time. UAE has the most advanced Arab military and defense sector and Pakistan is playing its strategic role in this regard. A number of security interests indicate the vital importance of the relationship for both sides. The Gulf Cooperation Council (GCC), a group of seven countries including Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman while Yemen was recently added is the world’s largest importer of arms. In an era of low or average oil prices, its members are also…

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The association of Pakistan with the United Arab Emirates (UAE) goes back to the foundation of the Emirates (a group of seven nations is the south-west Asia on the Persian Gulf). Pakistan was the first country to recognize the UAE since its establishment on December 2, 1971. The bilateral relations between the two countries are acquiring new dimensions at all political, economic and social levels. The UAE has become Pakistan’s largest trading partner among the Gulf Cooperation Council (GCC) member nations, with bilateral trade reaching US$ 9 billion (Dh33 billion) out of US$19 billion for the GCC, while the military-to-military…

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The recent announcement by the United Arab Emirates (UAE) to enhance its investments in Pakistan will help attract global Foreign Direct Investment (FDI) and accelerate economic growth in the Asian country. UAE has already invested around $6 billion into the country. It will continue to explore ways of strengthening investment and business relations with Pakistan. Pakistan is the UAE’s strategic partner and its government and workers have participated in the development of the UAE and its institutions. Among the seven GCC countries, the UAE is the biggest investor in Pakistan. From 2004 to 2010, its public and private sector investments…

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[dropcap]T[/dropcap]he International Energy Agency raised it outlook for 2017 global oil demand growth. US crude stockpiles rose sharply and gasoline inventories plunged due to impacts from hurricane Harvey. US crude jumps 2.2 percent to 5-week high, settling at $49.30, as demand outlook improves. Oil prices rose after the International Energy Agency said a global surplus of crude was starting to shrink, even though US data showed another big increase in crude inventories due to the ongoing effects of hurricane Harvey. The market is reacting in anticipation of refineries restarting, at the same time expecting a decline in demand due to…

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[dropcap]P[/dropcap]akistan’s economy is heavily dependent on oil importing. Around 80 percent of the total oil requirement is met through imports. Crude oil and petroleum products play an important role because of their widespread use in the economy. The higher international oil prices increased the fuel cost content to a great extent. It led to increase in transportation cost, which feed the food and energy content of consumer basket. The International Monetary Fund (IMF) has recently warned the Pakistani government and oil importers of a huge hike in oil prices. IMF has notified Pakistan that due to the increase in global…

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[dropcap]T[/dropcap]he Joint Cooperation Committee (JCC) of the China-Pakistan Economic Corridor (CPEC) approved the Long-Term Plan (LTP 2017-30) envisaging broad parameters for future cooperation. However, it could not conclude agreements on development projects and special economic/industrial zones. Informed sources said the Chinese delegation complained about the political instability in Pakistan that would negatively impact on the pace of CPEC progress. They also could not finalize taxation issues and stood short of final agreement on inclusion for financing of special economic zones. A lot of time was also consumed over Chinese insistence on prioritizing the Hattar Industrial Estate in Khyber Pakhtunkhwa in…

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[dropcap]I[/dropcap]ndia is in a sound macroeconomic position, to face various strong challenges and as a large importer of crude oil, India gained substantially from lower prices. It helped to curb inflation and had a good impact on both the fiscal and current account deficits. In October, Organization of Petroleum Exporting Countries (OPEC) members reduced production more than they had initially agreed to. Further, the internal power struggle in Saudi Arabia added to the uncertainty. According to the International Monetary Fund (IMF), Saudi Arabia will need oil prices to be at $70 per barrel for fiscal break-even in 2018. Members of…

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[dropcap]C[/dropcap]ement demand is growing in Pakistan and it is expected that the major developing infrastructure projects under China-Pakistan Economic Corridor (CPEC) will further increase its pace. There are other projects on the pipeline as recently a British firm showed interest to invest $400 million for building Pakistan cement plant, while there are number of local cement manufacturers working to raise their production capacity. But pending issues of higher duties and taxes and energy crisis spoil sporting the local manufacturers get full breakthrough. Higher cement consumption is the sign of a growing economy. It has a positive impact connected with the…

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[dropcap]C[/dropcap]herat Cement (CHCC) of Pakistan has announced first quarter net profit-after-tax of PKR606 million (US$5.75 million), up 50 percent year-on-year. The company net sales grew by 33 percent year-on-year to PKR 3.891 billion. It incurred distribution expenses of PKR81 million and administrative expenses of PKR57 million compared with PKR63 million and PKR50 million, respectively in first quarter 2017. Along with result, CHCC announced the installation of a 10MW WHR system on Line III. The plant is expected to cost PKR1.2 billion and would commence operations right after the start-up of Line III. CHCC already announced a 7100tpd (2.23Mta) expansion project.Incorporated…

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[dropcap]I[/dropcap]ndia’s cement industry provides employment opportunities to more than a million people. India is the second largest producer of cement in the world now. Throughout the period since it was deregulated in 1982, the Indian cement industry has allured huge investments, both from Indian as well as foreign investors. Having bright prospective for development in the infrastructure and construction sector the cement sector is expected to largely gain from it. The recent major Indian government initiatives such as development of 98 smart cities are expected to provide a major advancement to the sector. Several foreign investors such as Lafarge-Holcim, Heidelberg…

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OVERVIEW [dropcap]T[/dropcap]he company was established in Dera Ghazi Khan under the control of State Cement Corporation of Pakistan Limited (SCCP) in 1978, started operations in 1986 with a production capacity of 2,000 tons per day, about 600,000 tons annually. The company was acquired by Nishat Group in 1992 after the government’s privatization scheme, where many other cement companies were deregulated and privatized. The company became the larger of two cement producers at that time. More capacity was added through the years in order to increase capacity from 2,000 tons per day to 6,700 tons per day (approximately 2 million tons).…

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[dropcap]N[/dropcap]ational Savings has appeared as a challengeable vehicle for financial inclusion with introduction of attractive welfare oriented products. It registered a large number of customers of which more than 50 percent were women. The efforts of National Savings are being actively supported by the World Bank and Karandaaz (DFID and Bill and Melinda Gates Foundation) through up-gradation of IT system, offering alternate delivery channels (cell phone, internet banking and ATM cards), Enterprise Resource Planning system (ERP), Business Intelligence, Data Warehouse, capacity building and training etc. The efforts of National Savings in promoting financial inclusion have been lauded and recognized, not…

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[dropcap]T[/dropcap]he banking sector showed a robust growth in advances to the private sector in the quarter ended June 30, 2017, according to the Quarterly Performance Review of the Banking Sector released by the State Bank of Pakistan (SBP). The growth in advances is also the prime reason behind an 8.3 percent increase widening the highest among corresponding quarters since 2008 in the asset base. Gross advances (domestic) to the private sector increased 6.1 percent in April-June 2017 in comparison to the 4 percent growth recorded in the corresponding period of previous year. Besides seasonal financing needs for commodity procurement, the…

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[dropcap]P[/dropcap]akistan stands amongst the countries with lowest savings-to-GDP ratio, standing at a dismal 14.2 percent in 2015 compared to the global and emerging economies average of 25.6 percent and 31.4 perfect respectively. Low savings has been in the form of a burden of slow economic growth, high unemployment, double-digit inflation etc. Savings provides a greater momentum to economic growth in the form of investments. The national income greatly depends on savings available in the economy. Strong evidence shows that countries with higher savings-to-GDP ratio have recorded phenomenal economic growth compared to countries with lower savings-to-GDP ratio. Pakistan is at the…

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[dropcap]T[/dropcap]he World Bank has warned that the economy is now at risk given the scale of the macroeconomic imbalances growing within it. All through last year the World Bank largely maintained a silence. The growth rate is now troubled by the difficulties of the external sector. Pakistan will need to continue with economic reforms and pursue policies that make the country compete better in global markets. According to World Bank the growth rate going forward will be heavily driven by spending, personal as well as government. The spending, in turn, will be driven by rising remittances and election-related expenditures. The…

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[dropcap]T[/dropcap]he issue of withholding tax on banking transactions for non-filers in the budget for next fiscal year (2017-18) need to be reconsidered, the State Bank of Pakistan (SBP) asked the government again in a statement last week. The SBP is of the firm opinion that imposition of advance tax on banking transactions is disheartening the citizens from using banking channels for their financial transactions. It has specifically argued that this levy of 4 percent on non-filers and 0.3 percent on filers adversely affects the deposit base of banks and this was a matter of concern because Pakistan has one of…

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[dropcap]T[/dropcap]he International Air Transport Association (IATA) expects 7.2 billion passengers to travel in 2035, a near doubling of the 3.8 billion air travelers in 2016. This new prediction is based on a 3.7 percent annual Compound Average Growth Rate (CAGR) noted in the release of the latest update to the association’s 20-Year Air Passenger Forecast. Demand for air travel over the next two decades is set to double. Enabling people and nations to trade, explore, and share the benefits of innovation and economic prosperity makes our world a better place,” Alexandre de Juniac, IATA’s Director General and CEO quoted as…

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[dropcap]A[/dropcap]ir cargo traffic is prospering as normally seen at the start of an economic uplift raise demand for fast air transport to get goods to market as quickly as possible. Though the US economic recovery is considered somewhat long in the threatened economies in Europe, Asia and parts of Latin America are believed to be in the early stages of a revival. In the first quarter, demand, measured in freight ton-kilometers, rose 11 percent year-over-year. In April, freight ton-kilometers rose 8.5 percent from 2016 levels. International Air Transport Association (IATA) says global air cargo traffic to grow well ahead of…

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[dropcap]H[/dropcap]ybrid rice is a variety of rice that has been bred from two very different parents. The seed from the first cross of the two different parents is the hybrid variety. Hybrid rice breeding first requires identifying two optimal parents that when crossed together produce a hybrid product with desirable attributes including higher yield. Hybrid rice seed production is usually only done by commercial seed producers who have the necessary knowledge, skills, and capacity to manage a very specialized field configuration and management to facilitate the cross pollination of the two parents and segregation of the hybrid rice seed to…

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[dropcap]T[/dropcap]he government is to allow another bailout package worth Rs13 billion to sick national flag carrier, Pakistan International Airlines (PIA). The country’s largest airline is a habitual recipient of bailouts in the form of capital injections from the budget or commercial loans from banks against the government’s sovereign guarantees due to its continuous losses. It has been in continuous default on payments to fuel suppliers, including the state-run Pakistan State Oil (PSO). This year, the government increased its guarantee limit for PIA by Rs10.5 billion to Rs161.5 billion to address the airline’s immediate challenges. The national airline had been operating…

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[dropcap]D[/dropcap]espite rising local sales the profitability of the cement industry has declined. Cement industry recorded an earnings decline of three per cent year-on-year. The pre-tax profits was down 15 percent in July-September against double-digit growth of 17 percent and 32 percent observed in the comparable quarters of 2016-17 and 2015-16, respectively. Sector sales grew 11 percent year-on-year in July-September, mainly supported by 21 percent growth in local dispatches due to robust demand from construction and infrastructure projects year. Cement dispatches in the first quarter of this fiscal year stood at 10.348 million tonnes. The industry operated at 88 percent installed…

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[dropcap]S[/dropcap]riLankan Airlines in its recently ended financial year carried the highest number of passengers ever in the airline’s history. Based on draft un-audited accounts, the total operational revenue increased to LKR136.68 billion from LKR129.48 billion in the prior year. The year was extremely challenging for airlines worldwide, with the International Air Transport Association (IATA) estimating an 8 percent global decline in air fares in US dollar terms. Despite these challenging conditions, SriLankan Airlines managed to control the decline in its average fares to only 3 percent in US dollar terms year-over-year. This was a satisfactory performance in relation to many…

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[dropcap]P[/dropcap]akistan’s rice exports witnessed a decline of around 14 percent during the last fiscal year due to lack of research and non-availability of new seeds. Few years back, rice was the second largest foreign exchange earning commodity with $2 billion exports, however, now it ranks fifth as the rice trade is facing severe crisis and exports continue to decline. Exporters said that future of rice exports is depending on the upcoming crop. If crop will be better and achieve higher yield than some increase is expected in exports otherwise current fiscal year will remain very challenging for rice trade. According…

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[dropcap]F[/dropcap]oreign investors kept lured to investment in Pakistan and never losing faith and still have an appetite of making money in the country for an example after six months of Osama Bin Laden death (2011), a leading Swede investor named Mattias Martinsson invested $1 million into Pakistan of his own money and that of his partners. The fund is valued at $100 million now. Moreover now the huge investment of $57 billion by China under China-Pakistan Economic Corridor (CPEC) since 2013 into Pakistan is big example that how the investment interest in Pakistan is intact as this CPEC projects will…

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[dropcap]A[/dropcap]mong the essential commodities, rice is one of the most important grains and massively protected by governments worldwide. The global rice market will likely be susceptible to interruption in the short term as exports remain concentrated among a few producers. In the rice industry the United States is the only major rice exporter in which the bulk of the population does not acknowledge the grain a dietary staple. Rice is the staple crop in South Asia, Southeast Asia and Africa. The grain is a key component in the everyday diet and a keystone of regional economies. Rice being one of…

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Current growth rate of this sector is larger than the growth rate of industrial and agriculture [dropcap]S[/dropcap]ervices sector, which according to the World Trade Organization (WTO) is the fastest growing sector of the global economy and contributes 70 percent to the global output. It also employs one third of global employment. In the production process, services can be found at various stages from the inception to the final consumption. The services sector is also scattered globally where advancement in information technology and communications have made it mobile and cost effective. Statistics of the services sector are difficult to measure. Countries…

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Burdensome taxation system benefits the rich rather than poor and deprived [dropcap]T[/dropcap]he evasion of tax is one of the much perverted factors in the taxation system of Pakistan. Common men are powerless to bear the hardship of sales tax on daily use commodities. Rich tax payers purposely misinterpret the real state of their affairs to the tax authorities. This includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned. The increase in the tax evasion results in the increase of the country’s tax gap. It negatively affects the performance of the country’s tax…

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[dropcap]P[/dropcap]akistan has signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters of the Organization for Economic Cooperation and Development (OECD) in Paris, recently. The convention is an instrument for international tax cooperation that provides for all forms of administrative assistance in tax matters. This is exchange of information (EOI) on request, spontaneous exchange, automatic exchange, tax examinations abroad, simultaneous tax examinations and assistance in tax collection. It also guarantees extensive safeguards for the protection of taxpayers’ rights. By signing the convention, Pakistan has shown its commitment to fighting offshore tax evasion and avoidance. Finance Minister Ishaq Dar has…

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[dropcap]T[/dropcap]he international community loses hundreds of billions of dollars every year due to trade-based money laundering whereas Pakistan loses $10 billion a year to money laundering. A recent US reports identifies China, Russia, Mexico and India as the top four sources of illicit financial outflows. The US State Department’s International Narcotics Control Strategy Report, refers to TBML (trade-based money laundering), the process by which criminals use a legitimate trade to disguise their criminal proceeds from their unscrupulous sources. This tradition allows traders and the currency big group to launder hundreds of billions of dollars every year. This is one of…

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CPEC related projects can help bring sluggish economy back to life [dropcap]W[/dropcap]orld Bank has recently alerted that macroeconomic risks in Pakistan have increased considerably during the fiscal year 2017 while the external balance is specifically not safe given the continuous current account deficit, disturbing the Pakistan’s reserve position. Since the International Monetary Fund (IMF) program came to an end, outside indicators of the economy have deteriorated, according to ‘The South Asia Economic Focus Fall 2017’ released ahead of the forthcoming World Bank and IMF annual meetings. Pakistan only a year ago was in a good position. The international reserves were…

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[dropcap]T[/dropcap]he persistent downward trend of the exports was substantially short of imports. This is something that needs urgent attention. Pakistan’s exports are on a decline, continuously for last three fiscal years. After achieving the record figure of $25.1 billion in 2013-14, overall exports declined to $23.7 billion in 2014-15 and further to $20.9 billion in 2015-16. This declining trend continued in the first 11 months of 2016-17 as well, totaling $18.5 billion and recording a further decline of 3.1 percent and because of this frequent decline in exports, in addition to around 20 percent increase in imports, Pakistan is faced…

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[dropcap]P[/dropcap]akistan is the world’s fourth largest cotton producing country but power and gas cuts have stopped exporters from producing their orders on time. Pakistan is the eighth largest exporter of textile products in Asia and employs 30 percent of the working population. This sector contributes 9.5 percent to the GDP and shares around 57 percent of total exports. The textile industry used to be the backbone of Pakistan’s exports and our country’s name as a textile brand was known around the world a few years ago. Leading cloth brands used to outsource their raw material and finished products from Pakistan.…

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Pakistan takes third spot in real estate investment in Dubai [dropcap]P[/dropcap]akistan has emerged as the third largest real estate investor in Dubai depicts Dubai Land Department (DLD). Pakistani nationals have made 5,398 real estate transactions pumping about AED 7 billion in Dubai’s real estate sector. The DLD released the list of top 10 nations that invested in the city’s real estate sector. Pakistanis bought property worth AED 3 billion (around Rs85 billion) in Dubai during the first half of this year, just behind Indians and Britons who plunked down 7 billion and 4 billion Arab Emirati Dirham, respectively. According to…

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[dropcap]F[/dropcap]ive Pakistani companies have made it to Forbes annual ‘Asia’s 200 Best Under A Billion’ list, down from seven last year. Agriauto Industries, Cherat Packaging, Ferozsons Laboratories, Ghandhara Industries and Searle Company made it to the list in 2017. India, which had its 11 companies appearing on the list in 2015, had only three appearances in this year’s list. There are only three Indian companies on the present list: 8k Mile Software Services, Kellton Tech Solutions and Manpasand Beverages. “This year’s candidates come from 13 countries and averaged 55 percent growth in sales, a 24 percent profit margin, and 113…

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[dropcap]W[/dropcap]e have a lot of potential in our youth and better opportunities would definitely help make productive use of their abilities but unfortunately lack opportunities to fully utilize their potential. Most of them had to go through a lot of hardships, inconveniences and societal difficulties. Pakistan’s youngest entrepreneurs and leaders have managed to achieve a lot, by doing everything on their own from scratch. Following are some individual who struggled to find prospects and good name for Pakistan. 1- KHALIDA BROHI When Khalida Brohi was 16, she witnessed the honor killing of a close friend who had chosen to marry…

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