Author: Mohammed Arifeen

[dropcap]T[/dropcap]oday banks are well-positioned to strengthen their retail banking business; particularly personal loan and auto finance low interest rates. Low interest has given rise to consumer spending. The stage is now set for a consumption-driven economy. The outlook for consumer finance is positive. The momentum is there and the growth trend will continue in a stable manner. It needs to be noted that the market has matured in terms of availability of credit bureaus, SBP (State Bank of Pakistan) consumer debt servicing caps and caps on loan amounts. The momentum, which is present, will continue to build aiding the banks’…

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[dropcap]B[/dropcap]uy a new car is always be a dream of every man. But due to financial problems most of us are unable to fulfill their dreams. But now it is not a problem at all. There are many banks that are providing car loaning services with lowest interests. Here is the list of five best car financing banks in Pakistan along with their interest and conditions. If one really want to buy a new or used dreamy car then it is strongly suggested keep these listed banks in mind while taking any decision. One need to think twice or more…

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[dropcap]C[/dropcap]ar Ijarah is Meezan Bank’s car financing product and is Pakistan’s first interest-free car financing. It is based on the Islamic financing mode of Ijarah (leasing). This product is ideal for individuals who want to get interest-free financing for acquiring a car. 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…

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[dropcap]M[/dropcap]EEZAN BANK EASY HOME — ISLAMIC HOUSING FINANCE With Easy Home you participate with Meezan Bank in joint ownership of your property, where the Bank will provide a certain amount of financing. You agree to a monthly payment to the bank of which one component is for use of the home, and another for your equity share. In fact, the total monthly payment is reduced regularly as your share in the property grows. When you have made the full investment, which had been agreed upon, you become the sole owner with a free and clear title to the property. At…

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[dropcap]S[/dropcap]aadiq Current Account is a non-profit bearing transaction account based on Islamic principle of ‘Qard’, whereby the customer is the lender and bank is the borrower. The funds collected in Saadiq Current Account are only invested in Shariah-compliant business avenues, only like Murabaha, Musharaka, Sukuk, etc. Saadiq Savings and Term Accounts are based on the Islamic principle of ‘Mudarabah’. Mudarabah is a special kind of partnership where one party gives money to another party for investing it in a business. The partner who invests is called Rab-ul-Mal (Investor), and the partner who looks after management is called Mudarib (Working Partner).…

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[dropcap]P[/dropcap]akistan’s trade deficit rose to $23.38 billion during the first nine months (July-March 2017) of the current fiscal year, up by 38.80 percent from $16.84 billion for the same period a year before. Provisional trade data released by the Pakistan Bureau of Statistics (PBS) showed a decline of 3.6 percent in exports during July-March 2017 with exports contracting to $15.119 billion in the first nine months of the current fiscal year as compared to $15.597 billion for the same period of the last fiscal year. Imports increased to $38.504 billion in July-March 2017 as compared to $32.445 billion for the…

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[dropcap]E[/dropcap]nergy crisis is worsening due to mounting circular debt. Thermal power plants are operating at 40 to 50 percent capacity, which is expected to drop further due to non-payment of dues. As on February 15, 2017, the total overdue amounts to the power sector, including GENCOs stood at Rs414 billion. Approximately Rs160 billion out of this relates to overdue payments from CPPA-G owed to GENCOs and NTDC while the balance is for IPPs. These are amounts verified and audited by the relevant departments for electricity already supplied to the system, and are past the payment due dates. The current unpaid…

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A study based on US, India and Pakistan economy INTRODUCTION [dropcap]T[/dropcap]he price of oil and inflation are often seen as being connected in a cause and effect relationship. As oil prices move up or down, inflation follows in the same direction. The reason why this happens is that oil is a major input in the economy. It is used in critical activities such as fueling transportation and heating homes. If input costs rise, so should the cost of end products. The direct relationship between oil and inflation was evident in the 1970s, when the cost of oil rose from a…

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[dropcap]P[/dropcap]akistan and Kuwait agreed to enhance bilateral relations in diverse fields. They both want to enhance cooperation in industrial, agriculture, energy and defence sectors. Kuwaiti investors are advised to take advantage of the immense economic opportunities available in Pakistan. Pakistan has proposed establishment of a Pakistan-Kuwait joint business council for promotion of trade relations between the two countries. Pakistan and Kuwait have been economic and trade partners for long and Pakistan wished to further enhance its relations with Kuwait in all spheres. Referring to the level of bilateral trade between the two countries, the prime minister reiterated that this needed…

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Pakistan set roadmap to boost trade, investment with Bahrain [dropcap]P[/dropcap]akistan and Bahrain would increase economic partnership under China-Pakistan Economic Corridor (CPEC) through mega projects of regional connectivity. The government of Pakistan had laid the foundation of economic engagements with Pakistan and Bahrain, which would be converted in 21st century economic partnership for increasing the trade and investment opportunities. Pakistan is getting excellent support and cooperation from Bahrain government. Bahrain is now going through economic reforms envisioned by current leadership. Bahrain is gateway for all GCC countries to give access to all six countries including Kingdom of Saudi Arab. Private sector…

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[dropcap]P[/dropcap]akistan’s relations with the United Arab Emirates (UAE) are remained extremely close, shared faith and traditions and even enjoying good business deals and the eager interest of further investments into the Pakistan by the UAE investors. Opening the new avenues of mutual cooperation and joint ventures, Pakistan has recently invited the UAE investors and companies to make use of investment opportunities under China-Pakistan Economic Corridor (CPEC), a great investment project of economic well beings for not only Pakistan but for all the regional countries of Asia. The United Arab Emirates (UAE) expressed interest in increasing investment into Pakistan from an…

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Pakistan falling back in global Basmati market progress Banking channels with Iran help push Basmati trade [dropcap]F[/dropcap]or the eight months ended fiscal year 2017, Pakistan’s total rice exports are down 11 percent year-on-year to $2.41 billion. It is necessary to mention here that rice is Pakistan’s second-largest export earner, after textile. Non-Basmati exports are down 11 percent year-on-year in terms of volume, and 14 percent in dollar terms. The non-Basmati variety downfall has become a cause of concern. This decline is a relatively recent unnatural occurrence as Pakistan had been doing exceptionally well to capture markets for its cheaper non-Basmati…

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[dropcap]T[/dropcap]hey also urged for increasing rebate on wheat export from present US$120 per tons to US$185 per tons. They further asked the government to immediately release Rs 15 billion stuck up with it in shape of claims of rebate on export of wheat. Surplus stock of wheat was increasing for the last three years whereas flour mills were being provided wheat from old stocks instead of new crop. These old stocks are no more meeting the standards and are unable to be grinded for producing flour. Wheat can be stored for two years but the wheat stored under open sky…

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Pakistan can be placed in third place in sugarcane production [dropcap]S[/dropcap]ugarcane is an important commercial crop worldwide and one of the principal sources of sugar and ethanol. Its byproducts are also used as a fodder to feed livestock in many countries. Sugarcane is a tall, perennial grass reaching 3 to 4 meters in height, comprised by jointed, fibrous stalks. Today sugarcane cultivated in most countries with warm climes. 1- BRAZIL Brazil tops the list of sugarcane producers with an annual production of 739,300 thousand metric tons. The South-Central region of Brazil is accountable for more than 90 percent of this…

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[dropcap]P[/dropcap]unjab cultivates cotton on 6 million acres, harvesting around 10 million bales. Its plan is to revive its cotton area and production to its historical level this season seems to be declining. During the last few years, the acreage has dropped drastically and hit a low of 4.3 million acres. Last year production fell to 6.9 million bales. Punjab made a significant effort to restore the crop output to the previous record level in a single year. There was the price recovery of around 25 percent over the last year and a plan to combat the pink bollworm attack on…

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Extraordinary growth during 2015-16 broke all previous records [dropcap]A[/dropcap]uto assemblers see the new fiscal year as encouraging owing to improved economic conditions, which are translating into an increase in demand for vehicles. Political stability and normalcy in law and order situation would help the industry to grow at an increased pace. Auto industry and its growth potential are attracting a lot of players in this region. Large auto players were eying the local market with interest and newly announced incentives by the government could motivate them further. The reduction in interest rates is having an appreciable impact on car financing…

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[dropcap]P[/dropcap]akistan motorcycle industry is flourishing. It has met 95 percent localization through state-of-the-art technology implementation along with billions of rupee investment and thousands of skilled work forces. In this potential industry, contributors have played their vital role to not only making it able to compensate local demand but also for exporting various models of motorbikes in different countries. Here is the list of top motorcycle manufacturers in Pakistan: ATLAS HONDA: Atlas Honda Limited is a joint venture of Atlas Group, Pakistan and Honda Motor Company, Japan. Its plants are situated in Sheikhupura and Karachi. Atlas Group assembles four motorcycle models…

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Dire need to generate extensive jobs for young workers, technicians, engineers and management professionals [dropcap]P[/dropcap]akistanis spent around Rs75 billion on the import of used cars in the last fiscal year of 2015-16. This sale number is enough to enable investment of around $600 to $700 million in two plants of a size equivalent to Honda Atlas Cars Pakistan whereas these plants produce around 25,000 units in a year. The share of used imported cars and light commercial vehicles (LCVs) in the auto market was 19 percent in 2016. The past year witnessed the arrival of 46,500 used cars and commercial…

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Special incentives for import of new plant and machinery and technology up-gradation will be provided [dropcap]T[/dropcap]he mid-term Strategic Trade Policy Framework was formulated recently through an extensive consultative process spanning over almost a year and keeping in view the current trends in global trading environment and the declining trend witnessed in Pakistan’s exports during 2015 due to external shocks combined with domestic factors and inelastic import demand. A Trade Committee (TC) headed by Federal Minister for Commerce has also been established which would monitor the implementation of STPF 2015-18. It would remove bottlenecks, examine issues relating to trade promotion, strengthen…

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[dropcap]P[/dropcap]akistan’s sugar industry is the second largest agro-based industry in the country after textiles. At present it is diversifying into power generation, food and wood-making business in order to boost profits. Sugar industry is important for the Pakistan’s economy, owing to its impact on agriculture and large scale manufacturing growth. It directly and indirectly employs over a million people. It pushed last year Rs230 billion into the rural economy. This year, there will be payment around Rs250 billion to growers besides saving $2.5billion in import substitution. Global prices substantial protection against imported sugar and export subsidy during the last two…

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[dropcap]T[/dropcap]extile industry is the backbone of the economy and generates the highest export earnings. It has failed to meet the new challenges that appeared in the global textile and fashion industry in recent years. Pakistan is the fourth largest producer of cotton in the world and holds the largest spinning capacity in Asia after China and India. It failed to attract investors to its textile industry. Bangladesh has come out as an attractive destination of readymade garment manufacturers. Pakistan’s textile sector contributes around 50-55 percent ($12-13 billion) in the country’s exports which totaled $25.13 billion in the year that ended…

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[dropcap]P[/dropcap]akistan is blessed with rich fishery potential with a coastline of about 1,120 km. Fish is an important component of Pakistan’s agricultural economy. A major part (65 percent) comes from marine resource. This accounts for one percent of the GDP. It is an important source of food as well as livelihood for over one million people in the country’s coastal belt. Pakistan has a wide variety of fish products with 150 species of commercial importance. Most valuable of them are exported while a major part of the total catch is converted into fishmeal for export, as well as for use…

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[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 expansion of mortgage finance. Banks had made net consumer financing of Rs31.2 billion in 2014 and Rs31.3 billion in fiscal year 2015. This was equal to 10.5 percent and 17.3 percent of their net lending of Rs298 billion and Rs180 billion to private sector businesses (PSBs) in the last two fiscal years respectively. In the first seven months of this fiscal year, banks made Rs4 billion worth of net housing loans against Rs14 billion auto…

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Deposits are becoming unattractive for the customers [dropcap]T[/dropcap]he profitability of the banking industry is under substantial pressure. The last two years have been very challenging for the banks. The reduction in interest rates and downward re-pricing of government papers (domestic public debt) have flattened the spreads to 2-3 percent from 5-6 percent and affected the yields of banks. The State Bank of Pakistan has slashed its policy rate since it started monetary easing in 2014-15 to boost weak private investment. The reduced spreads are impacting the bottom line of the (small to medium-sized) banks. Many analysts believe that the small-…

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[dropcap]C[/dropcap]hina and Pakistan have for a long time cooperated closely at the diplomatic levels and currently both countries are making efforts to expand their bilateral collaboration economically as well and in this regard the construction of the China-Pakistan Economic Corridor (CPEC) is an important example. The total committed amount under CPEC of $50 billion is divided into two broad categories — $35 billion is allocated for energy projects while $15 billion is for infrastructure, Gwadar development, industrial zones and mass transit schemes. The entire portfolio is to be completed by 2030. Energy projects are planned for completion by 2020. 10,000MW…

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[dropcap]T[/dropcap]he performance of banking industry in Pakistan continues to be sound and strong. According to the Quarterly Performance Review of the Banking Sector for the quarter ended 31st December, 2016, gross advances to the private sector surged by Rs410 billion or 10.6 percent during this quarter as against the rise of 7.7 percent in the corresponding period of last year. The increase was largely attributed to the textile sector followed by energy and sugar sectors. The most important development was a substantial rise in bank credit to the private sector, which could prove to be a catalyst in stimulating investment…

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[dropcap]T[/dropcap]he government is actively pursuing to start practical work on the much-awaited Iran-Pakistan (IP) gas pipeline project. The practical work on decades old multi-billion dollars Turkmenistan-Afghanistan–Pakistan-India (TAPI) gas pipeline project has already entered its practical phase in Pakistan, and the government is making efforts to start work on the IP project soon. The sources informed that the work on IP project could not be initiated due to international sanctions on Iran, however, Pakistan was ready to complete the gas pipeline within 30 months in its part once the sanctions on Iran were lifted. Pakistan was keen in early implementation on…

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[dropcap]T[/dropcap]he CAREC is a partnership of 10 countries including Afghanistan, Azerbaijan, China, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan and Uzbekistan. It is supported by six multilateral institutions, working together to promote development through cooperation. It helps Central Asia and its neighbours realize their significant potential by promoting regional cooperation in four priority areas. These are transport, trade facilitation, energy and trade policy. Pakistan’s location at the crossroads of West Asia, South Asia, Central Asia and the Middle East make it the natural gateway for the landlocked Central Asian Republics. The Central Asian countries have been connected to the universe…

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[dropcap]C[/dropcap]hina Pakistan Economic Corridor (CPEC) projects will accelerate trade links between Pakistan and China. It will reduce behind the border trade costs and bring about a shift in the means of transportation. It will bolster economic alliance with the world’s largest trading nation, China and give a boost to intra-country trade within Pakistan. The corridor will connect the country to the One-Belt-One-Road project and provide direct access to the markets of Central Asia and Europe as well. This will give a phenomenal expansion of trade of Pakistan’s trade with China. More or less 86 percent of the Pakistan’s exports occur…

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[dropcap]E[/dropcap]conomic Cooperation Organization (ECO) was formed in 1985 as a successor body to erstwhile Regional Cooperation Development, and expanded in 1992 when former Soviet Union’s Central Asian republics joined it. It has made little progress and its institutional framework is said to be not very effective. Intra-regional trade among the ECO member states is currently only eight percent of their cumulative external trade. The target was to increase it to over 20 percent. Factors restricting trade in the region include differences in economic systems, logistic constraints due to inadequate transport linkages and problems with banking transactions. The 13th summit of…

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[dropcap]R[/dropcap]ice contributes 9 percent to the national export proceed and 3.1 percent to the agriculture GDP of Pakistan. Rice export is the country’s second largest foreign exchange earner commodity. During the last decade, the composition of rice exports has changed drastically. Basmati’s share in rice exports has declined from 58 percent in 2007-08 to 24 percent in 2015-16. During the first half of the fiscal year 2017 Pakistan rice exports declined by 18 percent. This is mainly due to stiff competition in the world market. Pakistan exported rice worth $713 million in first half of fiscal year 2017 compared to…

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[dropcap]I[/dropcap]nternational Steels Limited (ISL) is a subsidiary of International Industries Limited (IIL) and was incorporated in 2007 to manufacture and sell flat steel products in Pakistan. The company has an investment of $165 million with equity contributions from Sumitomo Corporation, JFE-Japan and the International Finance Corporation (IFC) helped the company kick off into a hi-tech manufacturing segment. The company manufacturers cold rolled steel galvanized steel and color-coated steel. The company has had an annual capacity of 500,000 tons of steel with a product mix of 100,000 tons for cold-rolled product, 350,000 tons for hot-dip galvanized and 50,000 tons for color-coated…

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[dropcap]C[/dropcap]ement production in Pakistan averaged 2,219.01 of tons from 2003 until 2016, reaching an all-time high of 3,469 of tons in November 2016 and a record low of 864 of tons in May of 2003. The cement industry has planned to increase its capacity by 26.25 million tons over the next two to three years to support a smooth growth of the national economy. Sales of the cement industry rose 8.6 percent and reached 19.81 million tons in the first half (July-December) of current fiscal year 2016-17. The growth indicates that in the next two years the current production capacity…

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Bright prospect for domestic and foreign investors [dropcap]T[/dropcap]he Pakistani real estate market made progress in the last six months of fiscal 2016 after feeling the wrath of the new tax regime. The remaining six months proved to be catastrophic. The buyers and sellers dropped by 75 percent in post new tax regime. Real estate sector managed to record an overall growth of 118 percent over the last five years while in the first six months of 2016, the markets of Lahore, Islamabad and Karachi achieved a growth of 13.6 percent, 8.26 percent and 11.39 percent, respectively. The financial recovery in…

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[dropcap]I[/dropcap]n our country health has always been a neglected sector. Our civil hospitals and healthcare facilities are substandard. Public hospitals lack specialized doctors, technicians, blood banks and ventilators. The ambulances and stretchers are outdated; lack of hygiene and a dirty atmosphere add to the horrible situation. There are no specialists on hand to prescribe the right combination of medicines for the deteriorating condition. Due to an acute shortage of many crucial machines at the hospital, one had to take to a private clinic. No section of the class is spared. Even the privileged middle-class families experience a terrible time at…

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[dropcap]A[/dropcap]ziz Tabba Foundation (ATF) was established in 1987 as a not-for-profit trust. ATF has rendered its services by providing healthcare to the poor, housing and shelter for the needy, marriage support plan for parents who are unable to bear the exorbitant expenses of the weddings of their daughters, monthly aid for disadvantaged people, educational scholarships for deserving students who cannot afford to receive quality education and support poverty-stricken people on non-commercial, non-political, non-ethnic, and non-denominational basis. ATF supports underprivileged women of the Memon Community on need-cum-merit basis. The Aziz Tabba Foundation (ATF) aims to champion the cause of the disadvantaged.…

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Mexico and Thailand health care measures best to follow [dropcap]I[/dropcap]n Pakistan the health sector has been badly neglected and the policy makers have shown a lack of concern for educating the people in providing them with health care. Health is the most important conditions of well-being. In its 72 year history, Pakistan’s successive governments like civil and military have not made health a priority. In the urban areas the general state and quality of public services is very poor. On the other hand, in the rural areas, people live far from hospitals and basic health care units. A large portion…

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[dropcap]T[/dropcap]he contamination of drinking water is a major public health issue. The quality of drinking water is badly managed. Sources of drinking water both surface and ground water is contaminated with different kind of bacteria, toxic metals and pesticides. Drinking contaminated water may result in stomach ailments like diarrhea, vomiting, etc. Weak digestive system can cause deficiency in immune system. Contaminated water also causes Hepatitis A and B and skin diseases. Globally, billions of people still lack access to adequate sanitation and uncontaminated water, according to report released by United Nations and World Health Organization. Out of the world’s population…

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[dropcap]S[/dropcap]ome 795 million people in the world do not have enough food to lead a healthy and active life. This is about one in nine people on earth. The vast majority of the world’s hungry people live in developing countries, where 12.9 percent of the population is undernourished. Asia is the continent with the hungriest people — two thirds of the total. The percentage in southern Asia has fallen in recent years but in western Asia it has increased slightly. Sub-Saharan Africa is the region with the highest prevalence (percentage of population) of hunger. One person in four there is…

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[dropcap]Z[/dropcap]afar Securities (Pvt) Limited (ZSL) was incorporated on 28th June, 1999 under the Companies Ordinance, 1984 of Pakistan Stock Exchange. Syed Asim Zafar, Chairman ZSL, is a Nuclear Engineer from USA and has done his Masters in Human Resource Management. He has a vast experience in running and successfully managing a brokerage house. He started as an agent in 1989 with the membership of Mrs. Tasneem Zafar and in 1992 he acquired this membership in his own name. In 1995, Lahore Stock Exchange (LSE) did away with the “Open out Cry” method of trading and adopted a computerized trading module…

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AKD SECURITIES OVERVIEW [dropcap]AKD[/dropcap] Securities Limited is one of the leading securities firms in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. It accounts for more than 6 percent of the average daily value of the Karachi Stock Exchange and was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6,000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new…

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[dropcap]M[/dropcap]utual funds became a dominant instrument of investments only after private sector entered this market. First mutual fund was designed in the public sector in 1962. It took the private firms 21 years to enter this market and 40 years to substantially expand their presence. From 2002 and 2008 the assets under management rose from only Rs25.34 billion to Rs335.23 billion as more and more private funds were launched on rising local and foreign investment in the stock market. The size of assets under the industry’s management remains only a small portion of the total bank deposits and the number…

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[dropcap]A[/dropcap] consortium of Chinese companies has bought out 40 percent strategic shares in Pakistan Stock Exchange (PSX) in December, last month. The significant feature of the deal lies in the fact that it is the first such sale of strategic interest in a bourse in the regional markets. Through the deal, the Chinese bourse has also made its first foray in an acquisition outside China. The acquisition marks the first time that Chinese exchanges have bought stakes in a foreign bourse. It’s envisioned that the deal will further strengthen economic and financial cooperation between China and Pakistan as China is…

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Pakistan can achieve highest solar power production by 2050 [dropcap]P[/dropcap]akistan is a low-income country suffering from huge energy deficits that are not being met even with its primary source like oil and gas. 80 percent of the country’s electricity is produced through fossil fuel combustion. Pakistan has lost 7 percent of its GDP (approximately $13 million) in 2015 due to constant power outages and load-shedding. Solar power plants are meant to meet peak power demands during day time. As technology advances the costs will come down and eventually solar power will achieve thermal fuel-based power. But until that happens, it…

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[dropcap]E[/dropcap]lectricity production in Pakistan averaged 7,612.33 gigawatt-hour from 2003 until 2016, reaching an all-time high of 11,698 gigawatt-hour in June of 2016 and a record low of 4,195gigawatt-hour since December of 2010. Electricity production in Pakistan increased to 11,698 Gigawatt-hour in June 2016 from 11,035 gigawatt-hour in May of 2016. Electricity shortfall is at around 5,000MW. The rising temperatures pushed demand beyond 21,200MW against the maximum generation of 16,548MW. The annual growth rate of electricity demand between 2013 and 2020 would be about 7.8 percent, which would push the overall power demand to 27,840MW by 2017 and 31,900MW by 2020.…

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[dropcap]P[/dropcap]akistan faces severe electricity shortage leading to economic and social difficulties. It faces an energy shortfall of 3,668MW per day. Expanding the nuclear energy industry is one way Pakistan can meet its electricity shortfall. Nuclear power makes a small contribution to total energy production and requirements, supplying only 5 TWh (4.4 percent of the electricity in 2015). Total installed capacity is about 20 GWe. Only about 12 GWe is operable. Pakistan nuclear power program is with only 1040MW capacity. Its movement is expected to increase substantially with Chinese help. With the use of indigenous uranium our nuclear weapons capabilities has…

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[dropcap]T[/dropcap]he fashion industry in Pakistan is witnessing fast growth and youth which comprise about 32 percent of Pakistan’s population appear to be speedily seeking the favor. There are numerous luxurious fashion brands in the country and their annual sales volume runs in billions of rupees. In an exceedingly competitive market, these brands try to come up with the most creative designs. These brands are focusing the youth and meeting their demands. Brand consciousness among the people, is increasing rapidly. Television and social media are playing a substantial role in changing the mindsets of the youth. Fashion shows are also major…

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[dropcap]T[/dropcap]he Golden Chick story began in Central Texas in the late 1960’s when the concept was created by a former employee of a chicken franchise who believed there had to be a better way to run a franchise system. The delicious chicken, created by the development of secret marination and batter mixes, attracted franchise inquires, and by the time the founder sold the chain in 1982, it had grown to 39 restaurants. In March 1989, Golden Fried Chicken was purchased by an investment group whose involvement was strongly supported by the Golden Fried Chicken franchise community. Since then, the chain…

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[dropcap]P[/dropcap]ioneer in introducing fast-food culture in Pakistan and set about bringing the burgers notion to the country, the Raza family, the Karachi-based burger chain has staged back their business in the city with new franchising contract to expand its footprint across the country again. They opened its first franchised Mr Burger outlet at Khayaban-e-Badr, Defense-Karachi in August 2016 and looks set to launch another at Sindhi Muslim, Karachi anytime this year. The family behind Mr Burger plan to expand into other cities of Pakistan by 2018 to grab a slice of what experts say is the world’s eighth largest fast…

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[dropcap]I[/dropcap]slamic banks are introducing new products to take advantage of government incentives designed to boost growth in the industry. Our government believes it can pull more people into the formal banking sector, particularly in rural areas. This would eventually expand the Islamic finance sector, and would boost economic growth. Shariah-compliant banks in Pakistan held 11.4 percent of total banking assets in June, hardly changed from a year ago. The government introduced a 2 percent tax rebate for Shariah-compliant manufacturing firms in July to encourage them to rid off interest-bearing debt from their balance sheets. State Bank of Pakistan has exempted…

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[dropcap]P[/dropcap]akistan Stock Exchange took quick hit within a short span of time and just in one year, the reform of the country’s capital market recording positive impact both in the regional and international equity business. The recent agreement with Chinese companies to invest in the capital market and in the past the renewal of status expansion and merging country’s three exchanges into one – Pakistan Stock Exchange – made this Exchange highly attractive. The market capitalization of the PSX is around $90 billion now, although only about a quarter of that is freely tradable. In December, the average daily value…

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[dropcap]A[/dropcap]s on January 24th, 2017 there are 576 companies listed in Pakistan Stock Exchange (PSX) and the total market capitalization is Rs9,969.782 billion. The listing is done on the basis of strict rules and regulations laid out by Securities Exchange Commission of Pakistan (SECP) and the management of Pakistan Stock Exchange Limited. All the listed companies are categorized in various main business sectors. The total sectors listed on Pakistan Stock Exchange, which contributes towards the market capitalization and all the listed companies (excluding their future contracts) are divided among these. Rest of the non contributory sectors allocated for indexes, futures,…

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[dropcap]UK[/dropcap] cannot possibly remain within the European single market as staying in it would mean “not leaving the EU” this has been said by the Prime Minister of Britain, Mrs Theresa May, recently. She promised to push for the “freest possible trade” with European countries and warned the EU that to try to “punish” the UK would “an act of calamitous self-harm.” The Prime Minister speech dealt with the UK’s post-Brexit trading relationship with the rest of Europe. This key note speech of UK’s Prime Minister invited much criticism both within the circle of government ministers, opposition and by other…

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[dropcap]C[/dropcap]andidates should find out whether they have the logical inclination to fare well in an MBA program. Human Resource Managers at multinational companies believe there are far more MBAs in the market right now than can be accommodated. An oil marketing company that runs 250 retail outlets across Pakistan, most business school is churning out unemployable graduates. There are three tiers of business schools in Pakistan. LUMS, IBA and CBM are in the top tier, Hamdard, Szabist and Iqra are in the second tier, and PIMSAT, Biztek, Greenwich and others are in the third tier. Fresh graduates of even the…

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[dropcap]I[/dropcap]t is estimated that more than 700,000 people die each year due to drug-resistant infections, though it could be much higher because there is no global system to monitor these deaths. There has been trouble tracking those deaths in places where they are monitored, like in the US, where tens of thousands of deaths have not been attributed to superbugs. A recent study states that number could rise to around 10 million by 2050. When antibiotics don’t work, they lead to long-lasting illnesses, more visits to the doctors, extended hospital stays and the need for more expensive and toxic antibiotics.…

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[dropcap]W[/dropcap]orld Mental Health Day is being observed on every 10th of October and the purpose of observing this day is to raise public awareness about importance of mental health and psychological disorders. According to the World Health Organization, mental health is defined as a state of well-being in which people realize their own potential, can cope with normal life stresses, can work productively, and can contribute to their community. Mental illness refers to a wide range of mental health conditions that affect mood, thinking and behavior. People go through periods when they feel emotions such as stress and grief, but…

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Pakistan ranks 4th in air pollution states: WHO [dropcap]P[/dropcap]remature deaths due to air pollution cost the global economy $5.1 trillion annually, which is about twice the economic output of the United Kingdom, says a World Bank report. In a major study of the economic costs of indoor and outdoor pollution, the Bank said air pollution prematurely kills 5.5 million people a year, or one in ten deaths worldwide. The year 2015, especially, has been the worst-ever recorded for premature deaths by exposure to pollutants. On the other hand, in China, the number of deaths from high air pollution was 2,620…

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[dropcap]H[/dropcap]aving largest Pakistan economy, Sindh is the second largest province of Pakistan population wise after Punjab. Being historically home to the Sindhi people it is also locally known as the ‘Mehran’ and has been given the title of Bab-ul-Islam (The gateway of Islam). Sindh is known for its distinct culture, which is strongly influenced by Sufism. The provincial capital of Sindh is Pakistan’s largest city and financial hub, Karachi. With Karachi being its capital that hosts the headquarters of several multinational banks. Sindh is home to a large portion of Pakistan’s industrial sector and contains two of Pakistan’s commercial seaports…

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[dropcap]A[/dropcap]gricultural insurance is undeveloped in Pakistan. Livestock insurance was the first as crop insurance is new and was introduced in 2008 under a public private partnership for a national (in scope) crop loan insurance scheme. The State Bank of Pakistan had announced a crop insurance policy, which has yet to be implemented in a thoroughly manner. Livestock and poultry insurance has been written on a small-scale in the past by various private insurance companies. It is available on a limited basis and includes both livestock cattle, buffalo, small ruminants and poultry insurance. Individual grower multiple peril crop insurance has been…

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[dropcap]P[/dropcap]akistan health sector remained in a disastrous position in its entire history. Pakistan’s successive governments have not given any due importance. Health policy in Pakistan received little or no space in the agenda of political parties. The media continued to report largely on health-related crises such as the spread of polio and child deaths in Thar. No serious and permanent action has been taken to control this menace. The infant mortality rate in Pakistan is 66 per 1,000 births, compared to 38 in India and eight in Sri Lanka. Life expectancy in Pakistan for women is 67 years, as compared…

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[dropcap]S[/dropcap]ome of the analysts at the recently held FT Commodities Global Summit said they expect oil prices to hover between $60 and $70 in the foreseeable future. For an oil-importing country like Pakistan that can hardly contain its current account deficit despite record-low energy prices, a rise in Brent crude can possibly be an indicator of tough times to come. Two of the major areas where the impact of rising oil prices will be felt are remittances and inflation measured by the Consumer Price Index (CPI). An increase in global oil prices will increase the rate of inflation in Pakistan…

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[dropcap]V[/dropcap]ast fluctuations in oil prices have played a significant role in putting economies into recession. Since 2008, oil prices have seen highs and low prices, with no prospects of a balanced path in the near future. The high values of oil prices during 2010–13 and the following prolonged downturn during 2014–16 shows that the world economy is still not stable. The direct influence of the Organization of Petroleum Exporting Countries (OPEC) on oil prices has changed due to rising competition from US shale oil producers. Instead of defending price levels, OPEC has changed its strategy to defend market share rather…

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[dropcap]P[/dropcap]akistan oil and gas sector has surfaced as the single largest revenue earner with more than Rs912 billion contributions to the national exchequer during the financial year ended on June 30, 2016. The total collection of petroleum levy stood at Rs149.3 billion in 2015-16 against Rs131 billion of the same period a year before, showing a growth of about 14 percent. The collection was also 11 percent greater than the government target of Rs135 billion in 2015-16. Another Rs80 billion was collected as Gas Infrastructure Development Cess (GIDC) that was significantly higher than previous year’s collection of Rs57 billion. The…

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[dropcap]T[/dropcap]here is a greater demand for consumer financing in Islamic banking in the country that is evenly distributed amongst rural and urban areas. According to survey Islamic banking is higher amongst retail (95 percent) than businesses (73 percent). Islamic banking in rural areas and in low income brackets has relatively limited access to financial services. This depicts a chance for developing Islamic microfinance in rural areas. In Pakistan the branchless banking have no doubt played a pivotal role in extending the banking facilities in the most part of the country but even then a bulk of the population in far…

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[dropcap]I[/dropcap]nvesting in risk-free treasury bills will be lessened. Banks should now explore other sectors. Credit to private sector is vital for economic growth. Stern regulatory regime has assisted Pakistan’s banking industry to live in adverse conditions despite domestic and international challenges. Banks would be forced to look out for other investment avenues also, besides traditional reliance on the government securities, treasury bills etc. In the current condition of depressed inflation, the discount rate has also reached a historical low, which has affected the profitability of the banks. Last 8 to 9 years ago banking was very easy as banks used…

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[dropcap]T[/dropcap]he non-performing loan in Pakistan reflects the health of the banking system. A higher percent of such loans shows that banks have difficulty in collecting interest and principal on their credits and it may lead to fewer profits for the banks. In absolute terms, non-performing loans (NPLs) of the corporate sector are already the highest among all segments. NPLs of banking system has increased to Rs649 billion for the quarter ended June 2016, which was Rs633.43 billion in quarter ended March 2016, according to data issued by State Bank of Pakistan (SBP). The net NPLs of the banking system increased…

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