Author: Syed Fazl-E-Haider

Efforts are being made by the government led by Prime Minister Imran Khan to revive the construction and real estate sector, as the country faces Covid-19 pandemic hitting economic growth. The China-Pakistan Economic Corridor (CPEC) involves construction of highways, railways and energy pipelines connecting western China with Pakistan and the Persian Gulf. The multi-billion dollar infrastructure projects planned under the CPEC are likely to generate tremendous construction activity. The development of road and rail links between Balochistan and Xinjiang, will give distinction to Gwadar port of becoming the gateway port for western China. Rail link will transfer goods to and…

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Constituting 44 percent of the country’s total landmass, Balochistan still remains underdeveloped province. It is rich in natural resources. It is strategically located on the confluence of South, west and Central Asia. The province presents wider prospects for local and international investments. There are greater investment opportunities in all sectors of provincial economy. First of all, the provincial government led by chief minister Jam Kamal needs to improve security situation in the province, as the killing of 11 coal miners belonging to Hazara community on January 3, 2021 in Bolan district does not send good message to the prospective foreign…

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COVID-19 pandemic has further mounted the poverty level in Pakistan where surging poverty levels and rising inflationary pressure have already hardest hit the poor and ordinary Pakistani in the past two years of the present government of Prime Minister Imran Khan. Pakistan is a country where up to 40% of its 180 million population lives below poverty line — on less than $1 a day or less. Despite tall claims of the officials about putting the economy on growth track, it is undeniable fact that, economic divide in the country, would widen in the coming days as dependence on foreign…

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Balochistan is rich in natural resources. It is strategically located on the confluence of South, west and Central Asia. The province presents wider prospects for local and international investments. There are greater investment opportunities in all sectors of provincial economy. The provincial government should improve security situation and create an environment through announcement of attractive incentives for seeking foreign investment particularly in horticulture, livestock, fisheries and mining. It needs foreign and local investment to develop its economic sectors. The businessmen hesitate to invest due to the lack of development infrastructure and law and order problem in the province. The province…

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After crossing the coronovirus tally of 220,000 cases in June the World Health Organisation (WHO) has named Pakistan among the 10 countries in the world who are reporting the highest number of new cases of COVID-19. The country recorded its biggest surge in coronavirus infections last month amid reported deaths of more than 4,500. Prime Minister Imran Khan repeatedly asked the international community to consider writing off loans to developing countries such as Pakistan to help them deal with the COVID-19 pandemic. The country is required to make $27.8 billion worth of public debt-related payments to its international creditors that…

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With a total outlay of Rs465.528 billion, the Balochistan budget increases spending on education, as it allocates 17% or Rs64 billion for education in the new fiscal year 2020-21. The education sector has suffered from years of neglect and under-funding. Balochistan is the country’s poorest province with standards of living and social indicators lagging substantially behind the rest of the country. The literacy rate of 39 percent is much lower than the national rate. There is a strong nexus of high illiteracy with high poverty in the province. A lethal combination of militancy and poverty continues to keep the province…

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Islamic finance can find rich social grounds for its growth and expansion in Pakistan and as this sector dominate Shariah-compliant services needed to be diversified. Noncompliance of Islamic law can result in withdrawal of funds from an Islamic bank. Hence, Shariah compliance is a serious matter for an Islamic bank. The concept of Islamic finance needs to be introduced for the promotion of Islamic banking and insurance industry in the country. As a regulatory authority of the insurance sector, the Securities and Exchange Commission of Pakistan (SECP) should take more initiatives to tap the country’s enormous potential in the sector…

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The COVID-19 pandemic has adversely affected growth in key sectors of Pakistan’s economy and the auto sector is not an exception. The country’s auto sector was already facing a slump before the outbreak of the coronavirus pandemic for many reasons including massive devaluation of rupee, high taxation, skyrocketing inflation and higher interest rate. The auto sales plunged 34% to 175,611 units in the first 11 months of 2019 compared to 235,491 units sold in the same period of the previous year. The irony is that due prevailing dismal situation in the auto industry, some car manufacturers like Indus Motor Company…

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Pakistan is confronting with new challenges and emerging issues in the highly competitive world of consumer products, which is more complex, well-connected and fast-moving than ever. Whereas, it creates enormous opportunities, it also enhances risk factors. The products and services actually constitute the consumer sector. The sector may also be divided into consumer staples and consumer discretionary goods and services. Consumer staples include food and beverage products, household supplies and any other items that are used on a regular basis due to ordinary use. The products sold directly to consumers are called consumer goods. Anything purchased by the average consumer,…

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The poverty level mounts in Balochistan, as the province reels under the lockdown measures to fight coronavirus pandemic. Present PTI government of Prime Minister Imran Khan must take steps for supporting the poor, reducing their vulnerability and recovering from disasters and pandemics like the current one— COVID-19. The government should also create conditions for the development of insurance markets, encourage the use of other risk-spreading financial instruments and design economic and regulatory incentives for risk reduction behavior. Steps need to be taken to stimulate coordinated actions and to mobilize regional resources for investments in risk mitigation. Balochistan is the least…

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The coronavirus cases are currently on the rise and over 7000 people in the country have been detected along 143 deaths (till April 18) with this deadly virus that originated from China’s Wuhan city and now spread almost all over the world. Prime Minister Imran Khan admitted that Pakistan does not have the capability and resources but will strongly deal with the novel coronavirus. Imran Khan asked the international community to consider writing off loans to developing countries such as Pakistan to help them deal with the crisis. The country with poor quarantine facilities, unsanitary conditions and lack of hygienic…

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Present PTI government of Prime Minister Imran Khan is for making investment in human development to upgrade the standard of living of the poor, deprived and neglected sections of people in the country. For the present PTI government, the aggravating poverty in Balochistan should be the major challenge. It must take steps for supporting the poor, reducing their vulnerability and recovering from disasters. The government should also create conditions for the development of insurance markets, encourage the use of other risk-spreading financial instruments and design economic and regulatory incentives for risk reduction behavior. Steps need to be taken to stimulate…

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Banks can play a key role in the growth of insurance industry in the province Larger the risk level, higher the growth of insurance industry. The risk perception — risks to life, assets and public and private properties — has been higher and widely prevalent in Balochistan where the incidents of terror and attacks on public and private properties have witnessed a phenomenal growth over the past many years. The reason is the poor law and order situation in the province, which is facing an insurgency-like situation. The other reasons include weak financial system, nominal industrial growth and inconsistent policies,…

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China has welcomed investment into Pakistan’s Special Economic Zones (SEZs) from other countries. While speaking at the “Dialogue on Industrial Cooperation under CPEC and SEZs Framework” organized by the Board of Investment last week, China’s Ambassador in Pakistan Yao Jing said that the Chinese investors were showing keen interest to invest in these SEZs. The private businesses have come into joint ventures of tyres, manufacturing of buses and trucks and textiles in the last six months. The second phase of CPEC would cover industrial cooperation, agriculture cooperation, social protection, poverty alleviation and cooperation in science and technology to boost the economy of Pakistan and…

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This year, Toyota Pakistan announced its collaboration with Pakistan’s one of the biggest e-commerce platform, Daraz.pk. This will enable people to buy car from the Toyota’s official store on Daraz. Electronic Commerce or e-commerce is actually the business done through the Internet in the present era of modernization and technology. The rapidly growing usage of internet is shifting the world towards the e-commerce. Phenomenal advancement in Information and Communications Technology (ICT) has not only brought a revolution in the lifestyles of the people but also in the business and marketing strategies of the people. Today, a company creates, maintains and…

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Balochistan is largely an untapped telecom market with the lowest number of mobile phone users. In 2018, a dozen telecom projects were launched to deploy telecom network and services in the province. Today, the telecom operators are set to unleash the potential of the province with 46 percent of the 12.3 million population has no access to either mobile, wireless or a fixed line network. Universal Service Fund (USF), an autonomous organization under the Ministry of Information Technology set out an aggressive strategy to roll out the basic infrastructure of telecommunication, basic telephone and internet service for people and businesses…

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Though having the highest mobile penetration rate in South Asia, Pakistan still has huge potential in digital economy growth. Telenor Group recently released a new connectivity report based on five Asian countries where Telenor Group operates, including Pakistan, Myanmar, Thailand, Malaysia and Bangladesh. The report titled “The Mobile Effect: How Connectivity Enables Growth”, focuses on the impact of the telecom sector on the economies in the countries. The Telenor has contributed more than $12 billion to the economies of Bangladesh, Pakistan, Malaysia, Thailand and Myanmar, resulting to more than 1 percent GDP in each country, according to the report. The…

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Pakistan’s banking sector witnessed unprecedented growth after 2001 due to low interest rate and product innovation in consumer financing. Like other provinces, Balochistan is also the beneficiary of the current low interest rate, particularly in consumer financing, which has emerged out as one of most prolific aspects of banking in Pakistan. Consumer financing products include credit cards, personal loans, auto loans and housing mortgage. It not only contributes towards facilitating the life patterns of consumers, but it also proves to be a source of improvement for the image of banks. A need is strongly felt to strengthen the regulatory mechanism…

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Present government led by Prime Minister Imran Khan is committed to Islamize the financial system of Pakistan and promoting Islamic banking. The State Bank of Pakistan (SBP) is playing a pivotal role for strengthening the regulatory and Shariah compliance framework for Islamic banking industry. Several steps have been taken for implementation of Musharakah and Modaraba modes of financing to be adopted in the country. A comprehensive legal framework has been established for Modaraba financing by Securities and Exchange Commission of Pakistan (SECP) and several laws supporting Musharakah have also been enacted, according to the Federal Minister for Economic Affairs, Hammad…

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Rise in the demand for the electronics and home appliances is attributed to the improvement in electricity supplies alongside an extended summer season. However, the rising fuel prices and soaring inflation has significantly eroded the purchasing power of people who feel harder to feed, clothe and house their families. High inflation and high interest rates raise concerns and pose challenges to the growth of this industry in the coming years. Last year, TCL, the world’s No. 2 LED TV brand, announced it is entering into the home appliance market with the launch of their air conditioners in Pakistan. TCL is…

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Pakistan’s auto sector faced a slump during the calendar year 2019 due to massive devaluation of rupee, taxation, skyrocketing inflation and high interest rate. The auto sales plunged 34 percent to 175,611 units in the first 11 months of 2019 compared to 235,491 units sold in the same period of the previous year. The prevailing dismal situation in the auto industry, some car manufacturers like Indus Motor Company and Honda Atlas Cars Pakistan introduced non-production days last year. Last year, the rupee depreciated 35 percent against the US dollar that mainly hit the auto sales in the country. The sector…

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Social sector in Balochistan suffered negligence for years. Investments in education and health sectors mean formation of human capital that can tap the province’s natural endowment. The underdeveloped education and health sectors contributed largely to the prevailing backwardness in the province. The social indicators are appalling in the province with illiteracy nearly at 60 percent, a small scattered population in large area, low primary school enrolment ratio and insufficient facilities for healthcare. No doubt, a healthy and educated population is real capital or human capital that can ensure development and off course the fruitful returns from the vast natural resources…

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Present government of Prime Minister Imran Khan has made some policy changes to facilitate new companies in the Exploration & Production sector for getting approval to start drilling activities in potential areas. At present, the country’s total sedimentary area is around 827,268 square kilometers, out of which 320,741 square kilometers is under exploration and under the changes there is much focus on exploration of indigenous oil and gas reserves. Out of Pakistan’s estimated 25.1 trillion cubic feet (Tcf) of proven gas reserves, 19 trillion are located in Balochistan. According to another estimate, out of the country’s proven oil reserves of…

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Today, people are in troubled waters due to the present flour crisis in the country and on the other hand sugar crisis is staring the countrymen. Pakistan is an agriculture country and it produces sugarcane in bulk and surplus wheat. The flour or sugar crises actually reflect mismanagement, corruption and bad governance on the part of the federal and provincial administrations. The country has to import 0.3 million tons of wheat next month to overcome the shortage. Transparency International ranked Pakistan 120 out of 180 countries in the Corruption Perceptions Index (CPI) 2019 released on January 23, 2020 moving up…

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Over $60 billion China-Pakistan Economic Corridor (CPEC) is currently in the second phase of its development. Mega construction projects under CPEC are in execution stage. Cement and steel are building materials used in the construction sector. There are hopes for high growth of cement and steel industry after the implementation of infrastructure projects under the CPEC. While the country’s cement industry has the capacity to meet the rising demand of cement for infrastructure projects under CPEC plan, the country faces acute shortage of steel products for construction activity. Cement Cement is the essential constituent of construction activity. Presently, the total…

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The beginning of Afghan Transit Trade from Gwadar Port marks the conversion of Gwadar into a regional hub port. Last week, a ship carrying first consignment of fertilizer for Afghanistan anchored at Gwadar Port in Balochistan. The port already has the trade related infrastructure to handle bulk cargoes to and from Afghanistan. Afghan traders will have the facility of transshipment and transit through the Port that will give a boost to their trade activities and quick clearance of their goods. Gwadar Port is a crucial part of over $60 billion China-Pakistan Economic Corridor (CPEC) and is considered to be an…

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The banking channels play an important role in enhancing the trade of a country with its major trading partners. In the Asian economies, the investors and businesses are looking for more supportive financial services, with a demand for financing solutions, hedge funds, and asset-based securities. Pakistan needs to establish and strengthen its banking channels with friendly countries including Turkey, Malaysia, Iran and China. Turkey in historic trade accord Turkey and Pakistan are the founding members of the economic cooperation organization (ECO), which is the only forum with representation of all the countries bordering Afghanistan. Free trade is central to regional…

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Strategically located Balochistan offers tremendous opportunities for growth of financial sector as the security situation in the province continues to improve and the projects under the China-Pakistan Economic Corridor (CPEC), development of Gwadar Port and untapped natural resources have brought the province in the radar screen of international investors. Present government led by Prime Minister Imran Khan needs to work on a strategy to increase the relative wealth among the local population and create a middle-class that will increase demand for banking facilities in the province. The local investors and businessmen should be provided more supportive financial services, meeting their…

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The Gwadar port in Balochistan ultimately went operational for export this month. This was the great news for the country’s economic jubilation in the year-end bearing future prospect. With a functional Gwadar port, the burden on the Karachi port will reduce. Gwadar port is the essential part of the China-Pakistan Economic Corridor (CPEC), and is considered to be an important link to China’s trillion dollar Belt and Road Initiative (BRI). The departure of a vessel, carrying three fish containers worth $50,000 each, for a Far-Eastern country started the seafood exports through Gwadar port, according to the Adviser to Prime Minister…

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Pakistan faces new challenges and emerging issues in the highly competitive world of consumer products, which is more complex, well-connected and fast-moving than ever. Whereas, it creates enormous opportunities, it also enhances risk factors. The products and services actually constitute the consumer sector. The products sold directly to consumers are called consumer goods. Anything purchased by the average consumer, from fruits, vegetables at the local market to a washing machine, television sets to a laptop computer, is part of the consumer business industry. Consumer sector is divided into consumer staples and consumer discretionary goods and services. Consumer staples include food…

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Pakistan witnessed a massive increase of 317 percent in tourist traffic at cultural sites over the past five years, according to a recent report by Gallup Pakistan, a research organization affiliated with Gallup International Association. The report released in September indicates that tourism could be a potential game changer that could revitalize the struggling economy of the country. The tourist traffic at museum sites increased by approximately 50 percent with the number of visits increasing from 1.7 million in 2014 to around 2.7 million in 2018. The tourist traffic in Khyber Pakhtunkhwa and Balochistan has also experienced a similar trend…

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Renewable energy experts estimate that a solar home costs Rs.100,000 but a solar energy system can be installed with one-time expenditure and the system needs no additional expenditure for years. From economic point of view, the solar thermal power plants will reduce the dependency on fossil fuels in remote areas. The operation and maintenance cost is nominal, compared to conventional power plants. Moreover, these plants will also avoid the risk of future electricity cost escalation. They are not only emissions-free in nature, but are ideally suited to reduce green house gases and other pollutants. Solar energy is the most reliable…

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Banking sector accounts for around three-fourth of Pakistan’s financial sector. A robust banking sector is a healthy sign for the economy of a country. It is this sector that plays the role of financial intermediation between savers and investors, which actually determine the rate of economic growth. The banking sector plays a critical role in mobilization of savings from households from across the country and placing them at the disposal of entrepreneurs. There is a dire need to make efforts for making the banking system more inclusive and focus its lending activities on the SMEs and agriculture sector. The banking…

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Pakistan is not at par with the Muslim world in growth and development of Islamic finance, yet it has shown an impressive growth and diversification in Islamic finance over the past three decades. Islamic banking is one of the emerging fields in global financial market. It is growing at very fast pace all around the world. Islamic investment banks and Islamic venture capital funds are yet to be fully launched in Pakistan. Islamic banking does suit to religious mindset in the Muslim country where the people generally abstain from purchasing insurance policies on religious grounds. Similarly, the people have reservations…

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Though Balochistan has vast potential in insurance sector, yet the sector could not play its due role in the local economy. Balochistan is the country’s poorest province. Agriculture, the mainstay of local economy, employs 67 percent of province’s total work force. The local work force and their dependents live in miserable socio-economic conditions. The insurance pay out can provide them some sort of monetary shield and lessen their sufferings to an extent. Insurance business generally grows on risk perception in a society. Larger the risk level, higher the growth of insurance industry. The risk perception- risks to life, assets and…

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With 770km long coastal belt along the Arabian Sea, Balochistan has the 70 percent of the country’s total coastline of about 1,045km. The coastal and sea-resources of Balochistan have not yet fully exploited and sustainably used for economic development of the province. The efficient and sustainable exploitation can bring about a positive change in the living standards of the people, particularly of coastal Balochistan and improve livelihoods there, besides creating enormous job opportunities and boosting economic activities in the least developed province. The fishing is the only activity available to the people of coastal areas in Balochistan. With high illiteracy…

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Oman is our fifth neighbor that shares maritime boundaries with Pakistan. It is the member of Gulf Cooperation Council (GCC), which is a political and economic alliance of six Middle Eastern countries. The other GCC countries include Saudi Arabia, Kuwait, the United Arab Emirates, Qatar and Bahrain. Oman has always been known for its political stability in the Gulf region. It has close relations with other GCC members and other nations of the world outside the Middle East. With a free market economic system, Oman enjoys a stable monetary policy that keeps inflation under control. Oman has a duty-free access to…

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Pakistan, the sixth largest producer of dates is the third major exporter of dates in the world. According to an estimate, the country annually produces around 600,000 tonnes of dates out of which only 100,000 tonnes are exported and the rest are either consumed locally or perish. Moreover, the season for different varieties of apple in Pakistan starts from the first week of July and ends in mid of November every year. The most famous apples produced in Pakistan are kala kulu, mashadi, amri, golden delicious, katja, red delicious, royal gala, Kashmiri, skyspur & summer red etc. Balochistan contributes 34%…

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Gwadar Port, which has allured international attraction and is all set to emerge as modern hub port of the region, is the focus of attention of local authorities that are taking measures to upgrade and develop the old infrastructure of the port city. Balochistan government has launched several development projects to upgrade historical sports and attract more tourism in the province, particularly Gwadar. Federal government and China have agreed to expedite the development process in the port city. A huge development process is currently underway in and around Gwadar to convert it into a new logistics hub such as Dubai,…

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Balochistan still lacks financial inclusion. Truly speaking, it still lacks access to formal financial services including savings, credit, insurance and payments vis-à-vis formal financial intermediaries, at an affordable cost. Present government led by Prime Minister Imran Khan needs to work on a strategy to increase the relative wealth among the local population and create a middle-class that will increase demand for banking facilities in the province. The local investors and businessmen should be provided more supportive financial services, meeting their demand for financing solutions. There is no doubt that the province offers tremendous opportunities for growth of financial sector as…

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More strategies and opportunities can help grow Balochistan shrimp availability Experts are of the view that stock of shrimps in Pakistani sea will reduce with the passage of time, and in order to meet the increasing demand, shrimps being caught recently were the mangroves with small eye nets, which is said to be very dangerous for ecosystem. Present government of Prime Minister Imran Khan should announce incentives for induction of the private sector in fisheries development particularly shrimp raising, as the interested entrepreneurs and investors can promote the shrimp farming in the country purely on the commercial basis. The present…

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Under the 1973 constitution, all Pakistani citizens are equal, with no distinction based on gender alone. Unfortunately, constitutional guarantees of equality have not been enforced in actual practice in Pakistan. Enforcement of the law is the real challenge. It has been observed on ground that force of custom most often prevails over official laws, making it difficult for women to claim their legal rights. It is the duty of the government to create conditions leading to the economic empowerment of women in Pakistan. They should be provided opportunities to play their role at all levels and in all types of…

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Home-based workers are an important part of Balochistan’s informal economy. Home-based work exists in all sectors of employment including handicrafts, manufacturing and agro-based sectors. It is an important source of employment for the local women who lack social security protection. These home-based workers are not generally incorporated in the national development agenda, as they are most unrepresented and voiceless. A national policy on home-based workers needs to be formulated to ensure their social protection and access to market. A systematic collection of data on home-based workers and their contribution to the provincial economy needs to be institutionalized. Home-based workers are…

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Last year, Balochistan government led by Chief Minister Jam Kamal Khan decided to impose health and education emergency in the province. The government declared that establishing boys’ and girls’ schools in every union council of the province is mandatory. It also decided to take strict action against absentee doctors who were not performing duty on the places of their appointment. It was decided that an apex committee headed by the chief minister would be set up in the health department to make decisions about devolution of powers in the department up to lower level. It also approved requirement of doctors…

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This month, Balochistan government is holding a three-day international Livestock Expo from November18 to 20 in Quetta with an aim to promote cattle farming in the province. The initiative would also increase meat production in the country besides, fulfilling its growing demand in the local markets. Undoubtedly, it is for the first time that a provincial government is holding a Livestock Expo to help improving standard of marketing of huge livestock sector, having potential to change the lot of the farmers. It is worth mentioning that delegates of researchers, farmers, academia and businessmen from various countries including Iran, Afghanistan and…

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Balochistan government led by Chief Minister Jam Kamal Khan plans to increase agricultural output by devising out of the box and effective solutions. The provincial government is taking radical steps to modernize dilapidated agriculture of the province and introduce latest equipment and techniques to cope with the drought areas of the province. The province plans to install innovative technology on each acre that would help increase production. Under the government’s initiative, proper training on latest parameters would be imparted to Agriculture Department officers at divisional headquarters in the first phase. These trained officers, in the second phase, would train and…

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Surging poverty levels and rising inflationary pressure have hardest hit the poor and ordinary Pakistani in the past one year. Though the present government of Prime Minister Imran Khan shows its commitment to alleviate poverty and rehabilitate the weak and poor sections of the society, yet there are no significant measures taken by the government in practical. There is a dire need to take practical steps for supporting the poor and reducing their vulnerability. The government should create conditions for the development of insurance markets, encourage the use of other risk-spreading financial instruments and design economic and regulatory incentives for…

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Gwadar Port has the potential to transform the country’s economic status forever. Strategically located Gwadar enjoys prime importance as it marks the confluence of South Asia, West Asia and Central Asia. The port city is emerging as modern investment center in the region. This month, President of Pakistan promulgated ordinance to grant tax concessions to the Gwadar Port and its free zone in a move to attract foreign investors into the port. Islamabad has already approved sales tax and federal excise duty exemptions on the import of machinery, equipment, and material either for use in Gwadar Free Zone or for…

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Most depressed Balochistan needs foreign and local investment to develop its economic sectors. The businessmen hesitate to invest due to the lack of development infrastructure and law and order problem in the province. There are greater investment opportunities in all sectors of provincial economy. The provincial government should improve security situation and create an environment through announcement of attractive incentives for seeking foreign investment particularly in horticulture, livestock, fisheries and mining. The province is rich in natural resources, but it is still underdeveloped region. For its huge mineral endowments, the province is known as museum of minerals. There is a…

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Pakistan imports Liquefied Natural Gas (LNG) to meet the demand of the country’s power sector. The gas indigenously produced stands at 4 billion cubic feet per day (bcfd) against total demand of 6 bcfd. The country has to import 1.2 bcfd LNG to meet the domestic requirements. The rapid depletion of existing hydrocarbon reservoirs in the country indicate that deposits would further deplete by 60 percent by the year 2027. Hence, there is a dire need for accelerating exploration activities in Balochistan’s potential areas on war-footing. Strategically located province is surrounded by the countries like Afghanistan, Iran, and Arabian Gulf…

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Pakistan can earn millions of rupees in terms of foreign exchange by developing tourism industry in Balochistan. With the development of Gwadar Port and the implementation of mega projects under huge China-Pakistan Economic Corridor (CPEC) plan, Balochistan has attracted international attention. The province can emerge as prime focus of attention of foreign tourists for its colossal potential in tourism sector. Endowed with natural treasure trove, captivating scenery, significant sites of multifold importance, variety of flora and fauna, diversity of climates and unique geology, the province possess huge potential for development of tourism. Unfortunately, no efforts were made to develop tourism…

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China-Pakistan Economic Corridor (CPEC) has entered the second phase of development. Gwadar Port, the soul of the CPEC, has already been granted various facilities enabling it to become a trade and logistical hub for the region. At the conclusion of Prime Minister Imran Khan’s two-day visit to Beijing last week, the two countries in a joint statement maintained that the second phase of the CPEC will promote industrial and socio-economic development in Pakistan. The statement said, “the two sides expressed determination to speedily execute CPEC so that its growth potential can be fully realized making it a high-quality demonstration project…

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Though Balochistan has vast potential in insurance sector, yet the sector could not play its due role in the local economy. Balochistan is the country’s poorest province. Agriculture, the mainstay of local economy, employs 67 percent of province’s total work force. The local work force and their dependents live in miserable socio-economic conditions. The insurance pay out can provide them some sort of monetary shield and lessen their sufferings to an extent. Insurance business generally grows on risk perception in a society. Larger the risk level, higher the growth of insurance industry. The risk perception — risks to life, assets…

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Pakistan’s consumption of expensive petroleum products currently stands at about 21 million tons, of which about 85 percent was met through imports. According to one estimate, around 50 percent of the energy need is met by the indigenous gas production and 29 percent by domestic and imported oil and 11 percent by hydro-electricity. The country has an installed refining capacity of 12.82 million tons a year from its five refineries. What the country direly needed is to take steps on war footings to develop its alternative energy resources for meeting future energy security challenges. There are three reasons for development…

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The products sold directly to consumers are called consumer goods. Anything purchased by the average consumer like fruits, vegetables, washing machine, television sets to a laptop computer from the markets is part of the consumer business industry. A staple industry represents a continuous required product used by the common man. Food and personal hygiene items are two examples considered part of a staple industry whether in manufacturing or retail sales. Today, Pakistan is confronted with new challenges and emerging issues in the highly competitive world of consumer products, which is more complex, well-connected and fast-moving than ever. Whereas, it creates…

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Gwadar port will prove a milestone in promoting regional trade between Pakistan, Iran, Turkey, Afghanistan and Central Asian Republics (CARs). For Pakistan, Central Asia is very important part of the region. The country is located close to the warm waters. Gwadar port is being developed into an international port with huge investment of China and the road network is being completed, which will connect CARs with this port and would generate massive economic activity in the region. The goods produced in Pakistan can be exported to CARs at much cheaper transportation rates. Transportation, investment, technology, tourism, agriculture and telecommunication are…

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The mantra of corruption and bad governance of the previous governments of Prime Minister Nawaz Sharif and President Asif Ali Zardari still persist. There is no doubt that the previous governments made records in corruption and bad governance, but the present government still need to take unprecedented measures to improve quality of governance in the country. The main issues in the economic development of Pakistan have been the bad governance and irrational utilization of funds. It is undeniable fact that economic growth is an important factor in reducing poverty and releasing resources for human resource development. There is a strong…

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Balochistan is the most poor and least developed province of Pakistan. The Multidimensional Poverty Index (MPI) uses a broader concept of poverty than income and wealth alone. It reflects the deprivations people experience with respect to health, education and standard of living, and is thus a more detailed way of understanding and alleviating poverty. In 2016, the country’s first ever official report on multidimensional poverty was launched by the Ministry of Planning, Development and Reform. The report was compiled with technical support from UNDP Pakistan and the Oxford Poverty and Human Development Initiative (OPHI), University of Oxford. According to the…

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Balochistan is far behind from other provinces in economic development. It is assumed that if Gwadar Port becomes fully operational as hub port, it will change the fortune of the most backward and the country’s poorest province. But on the other hand, if the terrorist activity to sabotage the mega development process gets a boost in the next few years in Balochistan, it will be a disaster for the least developed province. The least developed province lacks infrastructure that discourages investment for industrial development. The existing road network in Balochistan is in a dire need of maintenance and repair. A…

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Pakistan is taking initiative to develop Gwadar Port in Balochistan as a duty-free port with free economic zone on the lines of UAE’s Dubai. Present government led by Prime Minister Imran Khan plans to provide exemptions from income tax, sales tax and custom duties to the Gwadar Port for 20 years. The Economic Coordination Committee (ECC) has approved a proposal for amendments to various laws that would provide exemptions from income tax, sales tax and custom duties to the Gwadar Port for 20 years- until 2039. The proposal in this regard was submitted by Ministry of Maritime Affairs and sought…

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Balochistan is the country’s poorest and least-developed province. The ever-neglected and discriminated masses of the province are still living in highest deprivation level and lowest development level. No foreign investors can be allured as long as the province remains in the state of turmoil. Many foreign firms have closed their operations due to the security reasons in the province. The province is, however, rich in natural resources. There are greater investment opportunities in all sectors of provincial economy. The distinctive climatic conditions in the province provide diversity and a great variety for fruit production. Nature has bestowed Balochistan with so…

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Sialkot is the capital of the country’s sports industry. About 98 percent of products manufactured in small and medium industries of the city are exported to various countries. These industries, particularly sports industry, have been an important source of the foreign exchange earnings for the country. More than 400,000 people are engaged directly or indirectly with export activities in Sialkot, which earns around $1 billion from exports annually. Sports goods sector is the main export sector of the city with total exports of $450 million per annum. Soccer ball industry of Sialkot is famous for its unique production all over…

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Pakistan is among the world’s top milk producers. According to one estimate, 80% of the milk, which is the largest and single most important commodity in livestock sector, is produced in Pakistan’s rural areas. The country needs to make efforts to enhance dairy production and moving from subsistence to market-oriented dairy farming, which would be the harbinger of a ‘white revolution’ in the country for its main focus on milk sector. The country needs to tap the enormous potential in milk sector both for domestic consumption and export to foreign markets. The country’s small dairy farmers are facing major problems…

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The blue economy is the sustainable use of ocean resources for economic development and growth, improved livelihoods, and creation of jobs without harming or affecting the health of ecosystems of the ocean. In short, the economic activities related to ocean, sea and coast in a way that preserve the ocean ecosystems. Balochistan has 770km long coastal belt along the Arabian Sea, which links Lasbela and Gwadar districts. The coastline is 70 percent of the country’s total coastline of about 1,045km. It has huge potential for development of fisheries, tourism and seaports and renewable energy projects. The province enjoys diversity of…

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The environment experts stress the need for a new alternative energy policy for the Pakistan that could increase the share of renewable electricity generation to 30 percent of the national energy mix by the year 2030. Present government led by Prime Minister Imran Khan is committed to increase the share of renewable up to 20 percent in the national energy mix. The government is working on introducing a new power sector policy with an aim to remove all constraints in the electricity transmission system, which have been responsible for hampering the growth of renewable energy sector in the country for…

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“We are a nation with our own distinctive culture and civilization, language and literature, art and architecture, value and proportion, legal laws and moral codes, customs and calendars, history and tradition, aptitudes and ambitions; in short, we have our own distinctive outlook of life and on life. By all canons of international law, we are a nation.” This was said by Quaid-e-Azam Muhammad Ali Jinnah in his presidential address on the occasion of Pakistan resolution on 23rd March 1940. Quaid had a clear vision of Muslim nationalism in the subcontinent and he presented it in crystal-clear words. As we celebrate…

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Balochistan is the country’s largest province, with nearly 44 percent of its surface area and a thinly dispersed population of around 8.5 million. The present provincial government need to formulate a new strategy for development of Balochistan on fast track basis. The issues related to the development are complicated and demand realistic assessment for their solution. Prevailing socio-economic conditions demand a new development strategy for the ever-neglected province, which is mired in widespread poverty. The government should formulate a strategy realizing the sense of deprivation, frustration and alienation, which is further fueling unrest in Balochistan. Firstly, the government should take…

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Pakistan’s electronic and home appliances industry witnessed a rapid growth over the last one decade. Its consistent growth attracted both the local and foreign investors. The country witnessed a significant rise in production of electronic appliances such as smart phones, cooling equipment, electric motors, TVs, watches, and electronic security systems over the past few years. The home appliances sector occupies over 95 percent of the domestic market with a large pool of low cost human resource. The sector has already acquired a number of basic technologies. The home appliances industry in Pakistan is clearly divided into the organized sector and…

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The trend to use internet has been growing fast in Pakistan for the last one decade. As the trend grows faster, traditional business is being converted into internet business where all transactions are done online, from selection of product to payment of bills. The business on the internet is less costly and more beneficial. It is becoming very popular mode of trading around the world particularly in the West. With a population of over 200 million, Pakistan has the potential to become next major internet market in terms of number of connected people in the next few years. According to…

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With a population of over 200 million, Pakistan is the second largest economy of South Asia. The soaring inflation and rising unemployment rate demands promotion of savings culture in the country. The various saving schemes offered by the government or semi-government or private organizations helped an individual to manage hard-earned money. In broader sense, such schemes help in management of personal finance. The saving starts from an individual’s personal finance. The government needs to introduce attractive saving schemes with handsome profits to promote a savings culture in Pakistan. Pakistan’s gross savings rate was measured at 5.2 percent in June 2019,…

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Balochistan is endowed with rich mineral resources. There is a wider scope for setting up mineral-based industrial units in the province. The government needs to work out a comprehensive plan and strategy to set up such industries in the province. Balochistan possesses huge reserves of coal at Hamai, Degari, Mach, Ziarat, Chamalang and Abegum. The estimated reserves of all coal fields in the province are 217 million tons. Coal is the cheapest source of thermal energy used in industrial sector. It has the potential to replace other expensive fuels such as furnace oil. Unfortunately, Pakistan Steel is still importing coal…

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With a population of nearly three million people, the demand for water of Quetta city is increasing due to surge in population. Quetta has been getting 28 million gallons of water per day while the city has been facing a shortfall of 17 million gallons of water per day, according to the official figures. By 2026, the demand for water in Quetta will increase to 75 million gallons of water per day due to the surge in population. Presently, water is being supplied to the city by extracting fossil water by tube-wells. The underground water level in Quetta has dropped…

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Home-based workers are a major section of the society. They have to be seen as workers and producers. For making them eligible for social protection, they should be recognized as workers in the labor laws of the country. Balochistan government has no database on skilled persons who work from home, as they are not recognized under labor laws. These home-based workers are simply a non-entity for the government. The province produces quality handicrafts particularly the fine mirror work, embroidery, and marble work and fine quality precious stones. The embroidery of Makran, mirror work of Quetta, Kalat, Khuzdar, Dera Bugti and…

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A robust banking sector is a healthy sign for the economy of a country. It is this sector that plays the role of financial intermediation between savers and investors, which actually determine the rate of economic growth. The banking sector plays a critical role in mobilization of savings from households from across the country and placing them at the disposal of entrepreneurs. There is a dire need to make efforts for making the banking system more inclusive and focus its lending activities on the SMEs and agriculture sector. The banking authorities should reduce spreads between the deposit and lending rates…

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Though Balochistan has vast potential in insurance sector, yet the sector could not play its due role in the local economy. Balochistan agriculture, the mainstay of local economy, employs 67 percent of total work force but these work force and their dependents live in miserable socio-economic conditions and to lessen their sufferings and for monetary shield insurance pay out can provide them some sort of relief. The risk perception — risks to life, assets and public and private properties — has been very high and widely prevalent in Balochistan where the incidents of suicide bombings and attacks on public and…

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Fisheries is an important sector but it contributes only 0.3 percent to the overall GDP of Pakistan and 1.3 percent to the agricultural GDP, despite a coastline of 1,050 km and a total area of approximately 0.25 million square kilometers of marine and 0.08 million sq km of inland waters. The sector has an export potential of $1 billion annually and it provides direct employment to about 379,000 fishermen and 400,000 people are employed in ancillary industries. The country’s total stock of various fish and their landing are: small pelagics 700,000 tons (landing 96,658 tons); demarsals 500,000 tons (168,225 landing);…

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Balochistan offers the investors lucrative opportunities to invest in fruit farms. The distinctive climatic conditions in the province provide diversity and a great variety for fruit production. Nature has bestowed the province with so many natural resources and its favorable climate and various plateau of land further enhanced its importance by producing dates, cherries, apricot, pomegranate, grapes and apples. The development of fruit farms is essential to increase fruit exports from Balochistan. Export of fruits is considered a big source of foreign exchange. Pakistan enjoys robust position in world apple market. It is worth mentioning that a very good quality…

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Education is the main tool to develop human capital. The analysis of investments in health and education is unified in human capital approach, which focuses on the indirect ability of education and health to increase utility by increasing incomes. Investment in human capital formation means investment in education and health sectors. Human development provides a wide range of choices and opportunities to the people for employment, nutrition, education and health care. Sustainable growth and poverty reduction objectives are concomitantly linked to significant investment in human capital. Pakistan is yet to make significant attainments in the human development index (HDI), which…

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Government must announce a new livestock policy involving the private sector for promotion of the organized cattle farming activities in Balochistan. It should provide the required land and funds and announce incentive packages to attract the private parties for making investment in the sector. Balochistan is a pastoral economy, but it is yet to exploit its tremendous potential in livestock sector. It is an important sector of rural economy contributing about 40 percent to the provincial GDP. Ironically, the provincial government allocates a nominal amount for the development of this sector, which is the primary sustainable source of living for…

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Last week, the Balochistan government announced a Rs419.92 billion budget for the fiscal year 2019-20 with a Rs41.71 billion deficit and with a development outlay of Rs100.57 billion. The provincial government specially focused on social sector in its budget and increased expenditure in multiple social sectors. Allocation for education has been increased by 10 percent, while health budget witnessed a 26 percent increase. Moreover the budget increased expenditure on social protection by 468 percent and on law and order by 11.7 percent. In the budget for FY2019-20, education will receive Rs58.14 billion, health Rs26.04 billion, social protection Rs5.6 billion and…

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Balochistan has been lacking a corporate culture and hence it witnessed a meager corporate growth over the past many decades if compared with other provinces. Surprisingly, Balochistan witnessed a record corporate growth during the fiscal year 2010-11. The total companies registered with the Securities and Exchange Commission of Pakistan (SECP) Company Registration Office in Quetta crossed the 1,000 mark. The analysts consider it a milestone in the corporate growth history of Balochistan, reflecting the progressive development of a corporate culture in the province. The credit for unprecedented corporate growth in Balochistan goes to the SECP that undertook substantial reforms and…

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By virtue of its strategic location, Gwadar Port has greater scope and tremendous potential to emerge as hub port in the Asian region. It needs funds to develop into a hub port. In the budget for the fiscal year 2019-20, the federal government has allocated over Rs 4 billion for the development of Gwadar port city. Gwadar International Airport will receive Rs 555 million of which Rs 200 is foreign aid. An amount of Rs 800 million has been allocated for acquisition of land for Railway Corridor from seaport and railway operational land. Work on Gwadar Port expansion plan has…

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There is a strong nexus of high illiteracy with high poverty in least developed Balochistan. A lethal combination of militancy and poverty continues to keep the province far behind the other provinces in performance improvement in the educational arena killing all efforts and frustrating any prospect to bring improvement in poor state of education. For obtaining human capital in Balochistan, there is a dire need to resolve basic and pressing issues related to the education and health sector. Balochistan’s education sector has suffered from years of neglect and under-funding. The province has a literacy rate of 39 percent, which is…

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Present government led by Prime Minister Imran Khan has planned to privatize 48 public sector entities (PSEs) including loss-making Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM) during its five years constitutional tenure. The accumulative losses of PIA and PSM had surged to Rs400 billion and Rs200 billion respectively. The government would restructure the PSEs including PIA and PSM before their privatization, as no one would be interested in purchasing these PSEs in the existing conditions. The combined accumulated losses of PSEs eventually lead to sizable demand of budgetary resources. The present government has yet to allocate amount as…

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The present Balochistan government led by Chief Minister Jam Kamal needs to allocate sufficient funds in the budget for next fiscal year 2019-20 for the development of small and medium enterprises in mineral sector. The province is rich in mineral resources. Balochistan has great scope for setting up small and medium enterprises in mineral sector. The government needs to work out a comprehensive plan and strategy to set up such mineral-based units in the province. Chromite beneficiation plant The province is endowed with huge reserves of chromite. First discovery was made in 1901 at Muslim Bagh and Khanozai in district…

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A non-bank foreign exchange company (also known as foreign exchange broker or simply forex broker) is a company that offers currency exchange and international payments to private individuals and companies. There are more than 50 foreign exchange companies operating in Pakistan. The majority of foreign exchange transactions are handled by the banks, while the money changers handle only upto 25% of the market share. Though banks enjoy government’s incentives on fetching remittances, yet exchange companies do not enjoy any incentive. These companies are even not privileged to take dollars from banks to meet the rising demand. Exchange houses demand the…

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Today, Pakistan’s financial sector has transformed into a modern and sound financial sector dominated by private banks. The country’s banking sector accounts for 75% of financial sector assets. The microfinance sector is significant in terms of financial access. Islamic finance is growing rapidly, and currently accounts for 11 percent of sector assets. The Pakistan Financial Inclusion and Infrastructure project has already been launched aiming at increasing access to financial services for households and businesses by improving usage of digital payments in the country. The World Bank committed to provide $130 million finance for the project. The project will be implemented…

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Profits of the Islamic banking industry increased by 48 percent during the quarter Oct-Dec 2018, according to the State Bank of Pakistan (SBP). The SBP report issued last month said that profitability ratios like return on assets and return on equity were recorded at 1.4% and 22.3%, respectively by end Dec 2018. During the period operating expense to gross income ratio witnessed improvement and was recorded at 62.9 percent, compared to 65.1 percent in the previous quarter. The report said the assets of Islamic banking industry registered a quarterly growth of 8.1 percent during the quarter and were recorded at…

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Insurance business generally grows on risk perception in a society. Larger the risk level, higher the growth of insurance industry. The risk perception — risks to life, assets and public and private properties — has been higher and widely prevalent in Balochistan where the incidents of target killings and attacks on public and private properties have witnessed a phenomenal growth over the past five years. The reason is the poor law and order situation in the province, which is facing an insurgency-like situation. The other reasons include weak financial system, nominal industrial growth and inconsistent policies, which have so far…

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A recent World Bank report titled ‘State of Water Supply, Sanitation and Poverty in Pakistan’, said that Balochistan has by far the highest rural poverty rate, with more than 62 percent of its rural population living below the poverty line. The report released in November 2018 noted that districts in the country varied widely in poverty, with the poorest district — Washuk in Balochistan — at 72.5 percent. Much of this variation reflected differences in poverty across provinces. The vast majority of the 40 poorest districts were in Balochistan. The report said, not a single district in Balochistan was among…

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