Low interest rate giving rise to consumer spending [dropcap]I[/dropcap]n the wake of current interest rate prevailing in the country, banks are well-positioned to strengthen their retail banking business, particularly personal loan and auto finance. Analysts believe that low interest rate is giving rise to consumer spending, as theoretically speaking a low interest rate regime will boost consumer spending. Eventually, the banks will pass on the drop in KIBOR (Karachi Interbank Offered Rate). However, banks should remain cognizant of the target market which they are servicing to ensure the development of a sustainable balance sheet and consumer finance business. Banks are…
Author: kanwal Saleem
Country needs to build a strong foundation for e-business as current volume is around $4bn per annum, says PCJCCI chief [dropcap]A[/dropcap]lthough Pakistan is a late entrant to world of e-commerce, but with more internet penetration and surge in sale of smart phones, there has been a reasonable rise in online shopping trends and other e-commerce businesses. Such growth trends over last few years — with more than US$ 30 million being spent on online purchases currently — depict a highly positive picture for future and the size of Pakistan’s e-commerce market is expected to reach over US$ 600 million by…
[dropcap]D[/dropcap]espite improved economic indicators in the country, consumer finance is still a challenging subject, both for the consumer and the banks. Pakistani banks opt to secure their finances before opening up doors of consumer financing. Short-term advances are always better for banks than long-term as they are less risky for the bank and easier for the customer to pay back, said a senior banker talking to this scribe, last week. Most of the banks are using traditional approach of documentation and putting in maximum safeguards before going to auto, home or any other financing. As against developed world, innovation is…
Interview with Mr Yazad Dalal — Senior Director, HCM Strategy and Transformation at Oracle [box type=”shadow” align=”” class=”” width=””]Profile Mr. Yazad Dalal is the senior director of HCM Strategy and Transformation at Oracle Corporation where he is responsible for developing thought leadership and identifying trends in all areas of human capital management. Yazad Dalal works with HR leaders to deliver technology solutions that enable them to transform their organizations and modernize their workforce tools. In an interview, Dalal shared his views about HR practices. Following are details of his talk: [/box] PAGE: WHAT IS THE ROLE OF DIGITAL AND TECHNOLOGY…
PIAF chief sees huge taxes, unnecessary intervention, blackmailing, unaffordable power tariff and outages are the main factors behind the exports decline Govt should increase its exports and remittances for paying back rising debt obligations, says Fehmida Jamali [dropcap]T[/dropcap]he country’s exports witnessed a declining trend. The exporters are concerned over declining exports and termed unfriendly-exports policies, least priority of the incumbent government, low investment and delay in refunds as key reasons for the current downward trend in exports. On the other hand, official sources have identified high cost of doing business, energy shortage, increasing gap between real effective exchange rate and…
Country may also face rising external financing needs [dropcap]T[/dropcap]he surge in international oil price would leave a negative impact on our economy, as the anticipated price rise will increase the import bill and add pressure on foreign exchange reserves. This may push authorities to revise the electricity tariff upwards under fuel price adjustment. The upward trend in oil price globally is all set to add its impact on the already widening twin deficits (trade and current account), as every $10 per barrel rise in international oil prices increases Pakistan’s import bill by $1.25 to $1.5 billion per year. Oil prices…
PAMA proposes removal of anomalies in SRO 499 to encourage documented sector sales of HEV [dropcap]P[/dropcap]akistan is one of the last remaining large populations to go through rapid growth in motorization despite projected GDP ranking of 24th in the world. Currently, Pakistan has 16 vehicles per 1000 people and per capita income is $1400, which is leaving it behind against India (18 vehicles), Philippines (30 vehicles), Indonesia (69 vehicles), Thailand (206 vehicles), and Malaysia (361 vehicles). “Pakistan’s economy is shaping up and recent testimonials on the country’s economy by renowned world institutes confirm that Pakistan is the 3rd fastest growing…
‘Halal Label’ is recognized as a symbol of ‘Good Quality Product’ in the world [dropcap]I[dropcap]n the wake of emerging scenario in regional meat market, Pakistan possesses huge potential to capture major share in global Halal food industry, which is of billions of dollars. Halal meat is one of the fastest growing markets in the world and Pakistan by improving certifications and quality standards of Halal products can fully tap the Halal meat market. However, Pakistani entrepreneurs need to focus on developing good brands and improve branding of products, which is very important to penetrate the global market. India is largest…
APBF calls for strengthening economic gains and to reap full benefits under China’s mega project [dropcap]P[/dropcap]akistan is not only a trusted friend but a strategic partner of the United Arab Emirates (UAE). Pakistan had always extended strong support to UAE and Pakistanis had contributed a lot in UAE’s social and economic development. Both the UAE and Pakistan need to explore ways for strengthening their cooperation on economic front. Although some groups of UAE are operating in Pakistan, especially the Al Nahyan group of companies’ investment in Pakistan is at $6 six billion while more investment is expected in various sectors.…
Agreement with Turkey to deliver better if designed in line with input given by local industry and investors Interview with Mr Ameen Jan – a strategy advisor Mr. Ameen Jan has over 20 years of experience as a management consultant and strategy advisor to governments, international organizations and leading corporations in Europe, North America and Australia. He also worked for McKinsey & Company, United Nations, and UK government. Recently, we had a discussion with him on ongoing Free Trade Agreement (FTA) with Turkey. His analysis will help us understand industry’s concerns in a better way. Following are details of chit…
Bank Alfalah Auto Loan provides flexible auto-financing options with suitable payment plan [dropcap]F[/dropcap]aysal Bank Limited was incorporated in Pakistan on October 3rd, 1994 as a public Limited company under the Companies Ordinance, 1984 and engaged in Commercial, Retail, Corporate and Islamic banking activities. The Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited have determined the Bank’s long term rating as ‘AA’ and short term rating as ‘A1+’. Faysal Bank’s footprint now spreads over 100 cities with over 350 branches. With total assets in excess of Rs444.5 billion, placing it amongst the significant players in Pakistan’s banking…
Rs5.58bn has been granted to 251,351 youth under PM Interest Free Loan Scheme [dropcap]M[/dropcap]icrofinance Industry in Pakistan faces a number of challenges which, if overcome, can help prove to be drivers of growth apart from overcoming the vicious circle of poverty. In order to help micro finance industry, there is an urgent need to bring non-bank MFPs under the regulatory umbrella. Another key challenge is having the requisite human capital. This requires sector-wide capacity building initiatives to be started to meet enhanced training needs of practitioners. Despite, microfinance banks are working efficiently, which is evident from the data that as…
Pro-people innovative schemes can help expand Islamic banking in Pakistan [dropcap]G[/dropcap]rowth of Shariah-compliant investment funds in Pakistan is helping fuel demand for sukuk, which could encourage other countries trying to deepen their Islamic capital markets. Pakistan’s Islamic banks lag their conventional peers, holding around 13 percent of total deposits, while Islamic mutual funds and private pensions have a far greater market share. Islamic mutual funds held 242.7 billion rupees ($2.3 billion) in assets as of December, or 37 percent of the total, official statistics show, sources told PAGE. According to them, almost two-thirds of assets in the country’s voluntary pension…
Pakistan to construct three border posts on the Iranian border on modern lines: Khurram Dastgir [dropcap]D[/dropcap]espite being brotherly and close neighbors Pakistan-Iran trade volume is not upto desired level hindering the growth and promotion of trade ties on regional level. Mutual trade volume between the two countries do not reflects the friendly relations and investment potential of the both the countries. Realizing the importance of Pak-Iran trade, the trade infrastructure on Pakistan-Iran border is being upgraded in a bid to boost bilateral trade ties. Iran requires our textile products including T-shirts, jeans and home textiles. Demand for meat was equally…
Nawaz Sharif elected as chairman ECO; stresses on strengthening of bilateral relations Experts emphasized on effective investment promotion measures need to be adopted [dropcap]W[/dropcap]hile Prime Minister Nawaz Sharif has been elected as Chairman of the Economic Cooperation Organization (ECO) during the 13th summit held in Islamabad last week, enhanced economic cooperation and regional connectivity was advocated by the member countries. All the ten member states including Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Iran, Tajikistan, Turkey, Turkmenistan, and Uzbekistan besides a special representative from China participated in the summit. The theme ‘Connectivity for Regional Prosperity’ assumed special significance in the backdrop of monumental…
Interview with Mr Yazad Dalal — Senior Director, HCM Strategy and Transformation, Oracle Corporation [box type=”shadow” align=”” class=”” width=””]PROFILE Yazad Dalal is the Senior Director of HCM Strategy and Transformation at Oracle Corporation where he is responsible for developing thought leadership and identifying trends in all areas of Human Capital Management. He works with HR leaders to deliver technology solutions that enable them to transform their organizations and modernize their workforce tools. [/box] PAGE: PLEASE CAN YOU TELL US MORE ABOUT ORACLE’S BUSINESS IN APAC (ASIA-PACIFIC)? YAZAD DALAL: Oracle celebrated its 30th anniversary in APAC last year. Having begun operations in…
Rafi Group makes ten-fold profit in sale of hundreds of acres of land [dropcap]N[/dropcap]owadays investment in Gwadar is the best investment one can make. The price of entry today is so low as the projects of billions of dollars under the China-Pakistan Economic Corridor (CPEC) has started and on completion will sky-rocket. Rafi Group, who has already launched Green Palms Housing Project in Gwadar, says “now is the time to invest in Gwadar” as it gained phenomenal response from the market. Rafi Group plans to be at the forefront of CPEC related developments to provide a modern living and aspirational…
[dropcap]W[/dropcap]hile work is speedily underway on various projects under China-Pakistan Economic Corridor (CPEC) it is set to open up vistas of opportunities for local and foreign investors and due to work on infrastructure projects under CPEC, local cement industry and other allied industries has taken a boom. While the CPEC is improving the overall investment climate in the country, improvement in the investment-friendly environment as a result of affordable energy, increased profitability, high capacity utilization rate, finance availability and reduced political and economic uncertainty will help attain the investment target for 2017. There is a wide range of investment opportunities…
Number of beds has been increased and more medical treatment facilities are made available: Khawaja Salman EMOs being posted in all districts hospitals; IT system introduced: Imran Nazir [dropcap]T[/dropcap]o get better services, the Punjab government has bifurcated its health department into two separate departments — specialized health care and medical education department and primary and secondary healthcare department in the preceding fiscal year. As far as functional classification of Punjab health services is concerned, the overhaul includes allocation for hospitals, healthcare institutes, laboratories and other expenditure related to health administration, along with general administration. The overall allocation for Punjab health…
[dropcap]T[/dropcap]aking prenatal care importance and the healthy growth of a child, the Punjab administration under Chief Minister Muhammad Shahbaz Sharif recently launched a vital project, Khadim-e-Punjab Child Nutrition and Stunting Reduction Program. In the first phase, the program will be opened in 11 districts of the South Punjab and later the program will be expanded to other districts of a province. Approving a program, last month, the Chief Minister Shahbaz Sharif, also said that an effective mechanism has been evolved for the implementation of this program, but he said all-out resources will be ensured for the effective and speedy implementation…
The scope of modaraba needs to be expanded across the country [dropcap]M[/dropcap]odaraba sector is catering to a wide range of Shariah-compliant businesses, including leasing, manufacturing, trading, financial services, SME and halal food. Recent reforms and strengthening of regulatory framework by the Securities and Exchange Commission of Pakistan (SECP) has pushed up modaraba sector’s asset base by 11 percent to Rs41 billion in six months ending Dec 2016. The surge in assets indicated a growth of 11.41 percent from June 2016; when the total assets of the modaraba sector were recorded at Rs36.8 billion. Listed Islamic banks have 25,000 shareholders whereas…
Interview with Mr. Majid Masood — Director of High Land Securities Mr. Majid Masood is Director of High Land Securities (Pvt) Limited, which is a member of Pakistan Stock Exchange (PSX). In an interview with Pakistan and Gulf Economist (PAGE), Mr. Majid Masood shared his views about the country’s stock exchange and challenges faced by it. He said Pakistan Stock Exchange was ranked as the fifth best performing stock market in the world in the year 2016 according to Bloomberg and still our stock exchange continues to grow in an upward trend. Although decades of internal political disputes and low…
Nawaz-led govt committed to eliminate energy crisis and help revive industrial and business activities [dropcap]A[/dropcap]bout 84 percent of work on LNG-based Bhikki power plant has been completed and it will be producing 716MW of energy initially before the summers this year. This power plant has a total capacity of 1180MW and would be fully operational by the end of 2018. With work is underway on several power projects, it is expected that the rising sun of 2018 will witness Pakistan as a country self-sufficient in energy. Tireless efforts of the PML (Nawaz) government are not only restricted to end power…
Punjab govt making success in attracting private investment in energy sector [dropcap]T[/dropcap]he PML-Nawaz led Punjab government is vigorously pursuing various energy projects including solar energy-based system to fulfill country’s energy need and particularly to the economic growth of the country. The Punjab government and Turkish Company Zorlu Enerji Holding have inked a memorandum of understanding (MoU) for setting up 200MW solar power project in Quaid-e-Azam Solar Park Bahawalpur. Under the MoU, the Turkish company will install 200MW solar plant at Quaid-e-Azam Solar Power Park, Bahawalpur, while Punjab government will provide all out facilities to Turkish company. According to Punjab Chief…
[dropcap]T[/dropcap]he Water and Power Development Authority (WAPDA) is committed for optimum development of water and hydropower resources in the country. Currently, the management is constructing six hydropower projects with cumulative generation capacity of 4792 megawatt (MW). These projects include 969MW Neelum Jhelum, 1410MW Tarbela 4th Extension, 106-MWGolen Gol, 128MW Keyal Khwar, 2160MW Dasu (Stage-I) and 18.9MW Kurram Tangi Dam Project (Stage-I). Out of them, three projects of 2,485MW are scheduled to be completed by the year 2018. Sources in WAPDA told Pakistan and Gulf Economist (PAGE) that water sector projects which are under construction include Kachhi Canal (Phase-I), Nai Gaj…
Rightly committed in making its brand top demanding Practicing best ways to help society greener Excellence in quality and service is the hallmark of all operations performed at Gul Ahmed. Firmly standing by its business values, Gul Ahmed remained active in manufacture and sale of textile products. The story of textiles in the sub-continent is the story of Gul Ahmed. The group began trading in textiles in the early 1900s. The group entered in the field of manufacturing with the establishment of today’s iconic name of Gul Ahmed Textile Mills Ltd since 1953. After its listing on the Karachi Stock…
E-commerce has helped expand industries, telecommunications enabling small-scale businesses to flourish: Analysts [dropcap]T[/dropcap]he e-commerce industry is booming throughout the region, with India’s leading e-commerce website, Flipkart, raising a record US$1 billion in investment and Alibaba’s – China’s e-commerce giant – market capitalization estimated to be over US$250 billion. Pakistan, although a late entrant to the world of e-commerce, has started witnessing rise in online shopping trends and other e-commerce businesses. Such exponential growth trends over the past few years – with US$30 million being spent on online purchases currently – depict a positive outlook for the future and the size…
Sincerity and integrity has been code of conduct of business at Gourmet [dropcap]U[/dropcap]nlike many other countries, Pakistan does not have many chains of retail outlets. Although there are some retail outlets, it may be quite surprising particularly in view of successful operations of national chains. One of such success stories are that of Gourmet Bakers, which also converted into food outlets, catering service and furniture business. In the area of Ich’chra, Lahore, Gourmet took start with a small shop. The concept of fresh, healthy and hygienic food in affordable prices achieved quick popularity among bakery customers. The bakery products for…
SECP issues set of guidelines for investors and individuals to adopt a cautious approach [dropcap]P[/dropcap]akistan Stock Exchange (PSX) has been converted into a regional capital market after selling 40 percent stake to Chinese consortium, which is a landmark in Pakistan’s capital market history. While the Government of Pakistan is eyeing for becoming the top 10 economies of the world by year 2030, Pakistan Stock Exchange (PSX) can play a lead role in achieving the target, analysts told PAGE. They however, opined that an investment fund at PSX similar to Pakistan Development Fund needs to be set up. While Pakistan Stock…
Around 36 economic zones being set up in various areas; skill development work on the rise [dropcap]T[/dropcap]he inception of a new development era with the China-Pakistan Economic Corridor (CPEC) has opened up vistas of opportunities for local and international investors. The accomplishment of 12 energy projects by 2017-18, the emergence of Pakistan as the fastest growing Muslim economy by 2017, positive body language of foreign and international companies to invest in Pakistan, more than two million job prospects with CPEC, dramatic cutback in terror activities, curtailing energy crisis issues, scaling down poverty to record numbers compared with past years, the…
University’s VC vows to ensure quality education to the students, uphold merit [dropcap]E[/dropcap]stablished in year 1882 at Lahore, the University of the Punjab is the largest and the oldest seat of higher learning in Pakistan. Located in the historical and culturally alive city of Lahore, this University is playing a leading role in higher education in the country apart from facing a number of challenges including administrative issues. The University of the Punjab strives to provide a conducive environment for the pursuit of the academic activities. On account of its quality degrees, environment and low tuition fees the University remains…
University committed to excellence in academics, research and knowledge exchange [dropcap]G[/dropcap]overnment College University (GCU) Lahore is one of the leading educational institutions of the country where excellence is nurtured, pursued and celebrated since it’s inception in 1864. In its 153rd year of existence, this institution is cognizant of the national importance of enrolment in higher education while retaining its legacy by being supportive to social, academic and research community. GC university values underpin our vision and mission, and are integral to guiding the implementation of our strategy towards teaching, learning and research. GCU pursues its mission with courage, innovation and…
Govt committed on reforms evolved for setting up healthcare system on modern lines [dropcap]D[/dropcap]eath of a woman patient namely Zohra Bibi, recently, a resident of Kasur, in the Jinnah Hospital’s floor has raised a number of questions about state of affairs in the public sector hospitals. Despite claims of the Punjab government and vesting more powers to medical superintendents apart from perks and privileges to doctors and paramedics, the state of affairs in public sector hospitals is not improving, much to the dismay of public at large. Although, the death of Zohra Bibi is not the first case; as such…
[dropcap]T[/dropcap]here is huge potential for growth for the insurance industry in the country, both life and general. With rising cost of living and high inflation, it is difficult to set aside funds for insurance, however, with improved economic conditions and enhanced literacy, Pakistan’s insurance sector is growing but not at the desired level. With insurance penetration at just around 0.2 percent of total population and the size of the insurance industry below 1 percent of GDP, future growth in insurance will come only through increased awareness, analysts said. Having achieved a market capitalization of Rs127 billion, the non-life or general…
[dropcap]J[/dropcap]ubilee Life Insurance Company Limited was incorporated in Pakistan on June 29, 1995 as a Public Limited Company under the Companies Ordinance, 1984. The Company started its business on June 20, 1996. The Company is engaged in life insurance, carrying on non-participating business. In accordance with the requirements of the Insurance Ordinance, 2000, the Company has established a Shareholders’ fund and following statutory funds in respect of each class of its life insurance business: – Individual Life Unit Linked – Conventional Business – Accident and Health – Overseas Group Life and Health Business – Window Takaful Operations Jubilee Life commenced…
China ready to assist Pakistan in empowering its labor force in accordance with the industrial requirements [box type=”shadow” align=”” class=”” width=””]Profile Mr. Shah Faisal Afridi is a founder President of Pak China Joint Chamber of Commerce & Industry (PCJCCI). He is a professional businessman and CEO of Ruba SEZ Group. Mr. Afridi is leading a large and diversified group of companies in Pakistan, known as Ruba SEZ Group, which is one of the major players of Pakistan’s industry in textiles, electronics, information technology, automobile, banking, real estate, development, power generation and steel sector. Ruba SEZ Group is the only group…
Gov quarters and private sector must jointly find out a methodology for increasing the exports to control trade deficit: LCCI chief [dropcap]W[/dropcap]ith increasing oil prices in the international market, two of the major areas where the impact of rising oil prices will deeply be felt are remittances and inflation measured by the Consumer Price Index (CPI). Going by conventional wisdom, a surge in global oil prices will increase the rate of inflation in Pakistan that has remained subdued since October 2014. Analysts are of the view that it was too early to say how much the rising oil prices will…
Oil prices may gradually rise towards $60 per barrel by the end of 2017: experts [dropcap]T[/dropcap]he continuous rise in oil prices in the international market has raised alarm among developing countries, as the trend, if continued unabated, would cause problems to these countries including Pakistan mainly due to surge in current account deficit. Analysts believe that oil prices will gradually rise towards $60 per barrel by the end of 2017. They cited the agreement reached between the Organization of Petroleum Exporting Countries (OPEC) on the one hand and non-OPEC oil exporters on the other, to cut back on oil production,…
First quarter result shows worsening of both fiscal and current account deficits [dropcap]F[/dropcap]or the last two years, Pakistan’s “exports have been in free fall” as exports declined in a broad range of sectors. A report showing review of the economy for the first quarter 2016-17 released by the Institute for Policy Reforms says for a proactive and concerted efforts are needed to arrest the trend of declining exports. This is critical to improve long term fundamentals of the economy and to reduce Pakistan’s external vulnerability. The report further reminds that higher imports to improve power supply and for servicing of…
Country facing shortage of around 10 million housing units MCB Home Loan fulfilling dream; opens doors to numerous sensible financing options [dropcap]W[/dropcap]hile the country is facing shortage of around 10 million housing units, the formal financial sector caters only around 2-percent of all housing transactions, which is the lowest ratio in region. As per estimates, there was shortage of around 8 million housing units in 2009, which has been accumulating by 10 million this year. As per estimates, 4 million Pakistanis live below standard housing while roughly 70-percent of the world’s population will live in urban centers by 2050, a…
[dropcap]T[/dropcap]he Punjab government, in collaboration with the Punjab Information Technology Board (PITB) has revolutionized the stamp paper system by introducing the e-Stamping Program. Under this program stamp papers are procured electronically and the process hardly takes 15 minutes. The citizen is then sent a verification text message to eliminate the possibility of fraud. e-Stamping aims at both curbing corruption in the stamp paper system and making the process more efficient and convenient for citizens. Punjab Information Technology Board (PITB)’s flagship project e-Stamping has shown remarkable results in the shortest span of time. The experimental operation launched on six months ago…
Lowest car financing rates by banks have spurred demand for new cars Banks need to introduce more viable schemes [dropcap]U[/dropcap]ndoubtedly, the car leasing and financing facilities has given rise to the increase in car sales by a multiplier effect in the country, as buying on credit has enabled consumers to experience an increase in their purchasing power. In previous years, when Pakistan’s car industry was booming, car rental businesses also sprang up and appeared to be feasible business options. However, the prosperity of the Pakistani car industry was hindered by the financial crisis. As a result of which, prices followed…