A comprehensive analysis of principles, practices, and popularity among diverse audiences Islamic finance and banking represent an alternative financial system based on Islamic principles, with roots deeply embedded in Sharia law. This essay delves into the theoretical foundations, historical evolution, objectives, and operational mechanisms of Islamic finance and banking and its admiration in the world. It explores the core principles guiding this system, such as the prohibition of interest (riba), speculation (gharar), and unethical investments. Furthermore, it examines the various instruments and modes employed in Islamic finance, including Mudarabah, Musharakah, Ijarah, and Sukuk. Through a comprehensive analysis, this essay aims…
Author: Nazir Ahmed Shaikh
Key factors shaping the future of Islamic Banking in Pakistan Islamic banking has emerged as a significant player in the global financial landscape, offering unique financial products and services that adhere to Shariah principles. Through an examination of current trends, challenges and opportunities, this paper aims to elucidate the potential trajectory of Islamic banking in the years to come, while also highlighting the unique characteristics and developments within Pakistan’s banking sector. Islamic banking has witnessed remarkable growth and expansion in recent decades, propelled by increasing demand for ethical and Sharia-compliant financial services. With a global Muslim population exceeding 20 billion…
The significance of Lahore Resolution and the birth of Pakistan March 23, 1940, marks a pivotal moment in the history of the Indian subcontinent, as it was on this day that the historic Lahore Resolution, also known as the Pakistan Resolution, was passed by the All-India Muslim League. This resolution laid the foundation for the demand of a separate homeland for Muslims in British India, eventually leading to the creation of Pakistan on August 14, 1947. The significance of the March 23 Resolution cannot be overstated, as it not only provided a clear and unified vision for the Muslim community…
SDGs provide a comprehensive framework for addressing poverty in all its dimensions Private sector has a significant role to play in poverty reduction through CSR initiatives, sustainable business practices Poverty is one of the significant issues of the world. There are several causes of poverty. Numerous countries of the world adopt sustainable policies for its reduction. There are also direct and indirect responsibilities of the corporate sector to play a vital role in its reduction. The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action…
Overview Sport has always held a special place in civil society worldwide, transcending boundaries and bringing people together. In Pakistan, cricket stands as more than just a game; it’s a passion that unites millions. The advent of the Pakistan Super League (PSL) marked a significant milestone in Pakistani cricket, not only revolutionising the sport but also leaving a profound impact on the nation’s economy. In the realm of sports, cricket stands as a unifying force in Pakistan, transcending boundaries of class, ethnicity, and region. The Pakistan Super League (PSL) emerged as a catalyst, injecting excitement and fervor into the cricketing…
A comprehensive analysis of the economy of Pakistan Super League Cricket in Pakistan isn’t just a sport; it’s a passion that runs deep within the veins of millions. From bustling streets to tranquil villages, the love for cricket transcends boundaries, uniting people from all walks of life. In this cricket-crazed nation, the Pakistan Super League (PSL) emerges as a beacon of hope and excitement, offering fans a thrilling spectacle of T20 cricket while also serving as a catalyst for economic growth and development. At the heart of the PSL’s economic framework lies its innovative franchise model, a system that has…
Fintech is a revolutionary contribution to the growth of the Pakistani banking industry Pakistani traditional banks are playing a key role in the financial industry but the rapid technological development in the financial sector has evolved the world economy to shift to digital channels gradually. Financial technology (fintech) is a revolutionary contribution to fasten the pace of financial services. There is no doubt that the Internet is the main enabler for the fintech industry. Combining the words ‘financial’ and ‘technology’, fintech is technology-enabled financial innovation, which is changing the way financial institutions provide – and consumers and businesses use –…
AI bringing in significant impact on efficiency, security and customer services In the rapidly evolving financial landscape, Artificial Intelligence (AI) in banking is not just an emerging trend but a transformative force. This article delves into the integration of AI technologies in the banking sector, highlighting its significant impact on efficiency, security, and customer service. Artificial Intelligence (AI) in banking encapsulates the integration of advanced AI technologies within banking operations to enhance efficiency, security, and customer service. This technological infusion is not merely an incremental change but a transformative force revolutionising the banking and finance sector. AI in banking entails…
A glimpse into Pakistan supply chain evolution Pakistan is a land with a rich cultural heritage and a growing economy. The economic history of Pakistan ascendance with the fragile industrial base, agriculture dominance, and political instability. Pakistan’s economy is infested with structural issues such as excessive government interference in markets, existence of a large informal economy, insufficient investment in infrastructural and human resource development, inadequate tax revenue generation, and ineffectiveness of governance structures. These issues have led the country to slowed economic growth, high inflation, reduced investments, severe balance of payment crises, and rapidly diminishing foreign reserves. The gross domestic…
In 2024, economies and cities across many parts of the world will see a subdued growth environment, with higher-for-longer interest rates and geopolitical uncertainties weighing on consumption, investment, manufacturing and trade. On the upside, easing commodity prices and inflation will give some breathing room for companies and households. While global manufacturing is set to slow down, some markets and sectors could witness growing opportunities, driven by manufacturers’ location diversification efforts. The economy is ending 2023 in better shape than expected. Most importantly, inflation is falling in much of the world and some central bankers have signaled likely interest rate cuts…
Review of global economic conditions way ahead More than three years after the global economy suffered the largest shock of the past 75 years, the wounds are still healing, amid widening growth divergences across regions. After a strong initial rebound from the depths of the Covid-19 pandemic, the pace of recovery has moderated. Several forces are holding back the recovery. Some reflect the long-term consequences of the pandemic, Russia’s war in Ukraine, and increasing geo-economic fragmentation. Others are more cyclical, including the effects of monetary policy tightening necessary to reduce inflation, withdrawal of fiscal support amid high debt, and extreme…
Since 1906, the global average surface temperature has increased by more than 1.6 degrees Fahrenheit (0.9 degrees Celsius). Global warming refers to the long-term increase in Earth’s average surface temperature due to human activities, primarily the emission of greenhouse gases. The Earth’s atmosphere contains gases like carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), which trap heat from the sun and maintain a suitable temperature for life. However, human activities, such as burning fossil fuels for energy, deforestation, and industrial processes, release large amounts of these greenhouse gases into the atmosphere. The increased concentration of these gases enhances the natural…
There can be no denying that Pakistan has been poorly let down by its leaders. Since its inception, no Pakistani Prime Minister has served a full five-year term. This has left the nation perpetually teetering on the brink of a political crisis. Policy changes have not been seen through execution; legislators worry more about their position than their responsibilities; foreign businesses are wary of setting up operations in Pakistan due to the political volatility. Few industries in the nation are as high-potential as Pakistan’s textile industry. The sector already employs about 40% of the labor force. The numbers could increase…
The role of microfinance institutions in poverty alleviation Poverty is a pandemic that has attracted policymakers and researchers to postulate channels of poverty alleviation which need an immediate address so that the societies’ living standards can be improved. According to the World Bank, 71 million-plus people on the continent have already been pushed into extreme poverty by the outbreak of Covid-19. Millions more are teetering on the brink. Research has shown that poverty can only be destroyed if societies are equipped with the necessary resources to quick jump-start their income economic activities such as small-scale farming, small business, and sole…
The current world population is 8.1 billion. By 2050, it is expected that the world’s population will grow to nearly 10 billion; thus increasing our need for food by more than 100 per cent. Currently, 1 in 8 people, or 842 million, struggle with hunger every day. While agriculture has evolved in order to meet these intensely growing food demands, farmers will need to increase food production by 70-100 per cent to meet global nutrition needs. There is relatively little available land on which to cultivate food. The Food and Agriculture Organisation of the United Nations (FAO) projections indicate that…
Time to drive innovation, enhance living standards and help achieve sustainable development goals Consumer finance has come a long way from its historical origins to become a driving force in the global economy. Its success can be attributed to economic growth, financial inclusion, innovation, and effective regulation. Looking ahead, consumer finance will continue to evolve, driven by digital transformation, financial inclusion efforts, data analytics, and a commitment to sustainability. As it adapts to the changing needs of individuals and societies, consumer finance will remain an essential component of modern economies. Consumer finance can trace its roots back to ancient civilisations.…
New policies necessary to boost bilateral trade connections Pakistan has enjoyed a cordially relations with Saudi Arabia since its birth. The relations are rooted in the centuries old religious, cultural and commercial links. Pakistan and Saudi Arabia have an unprecedented relationship, ready to help each other at needed time and space. These relations are based on solid foundations of Islamic ideology and traditional Islamic values. The spiritual affection the people of Pakistan have for the Holy Places (the Kaaba Tullah and Masjid al-Nabawi) and with the people of the Holy land reinforce the bilateral relationship between both countries. The ideological…
Steering the sustainable economic growth in Pakistan is a very intricate, multi-layered and complicated task. The collective, intensive and concentrated efforts are required from all the stakeholders to address the political instability, energy shortages, security concerns and many other challenges. Sustainable economic growth is not a quick fix. By investing in education, healthcare, infrastructure, and environmental conservation, Pakistan can unlock its full potential and create a better future for its citizens. Pakistan, a nation of over 241 million people, possesses a rich tapestry of culture, history, and natural resources. It’s a land of diverse landscapes, from towering mountains in the…
Time to improve policies and start manufacturing medical devices within the country The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. The 17 SDGs are integrated—they recognise that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability. Countries have committed to prioritise progress for those who are furthest behind. The SDGs are designed to end poverty, hunger,…
Pakistan has so many feathers in its cap. It is the world’s fifth-most populous country, with a population of over 225 million people. It is also the second-largest Muslim population, after Indonesia. Pakistan Army has emerged as a rising global military power as it ranks as the seventh most powerful army in the world, according to the Military Strength Rankings 2023. Pakistan Army has jumped up eight places within three years. Its ranking improved from 15th back in 2020 to 7th in 2023. Tested its first nuclear weapon in 1998, becoming the world’s 7th state to officially test a nuclear…
The advent of Fintech dates back to the 1950s when the first credit card was invented by a diner’s club. Yet, the official use of technology in financial services can be traced back to 1967 when Barclays Bank installed the first ATM in the evolving era of banking. This marked the real shift from technology to digital technology. The term FinTech or Financial Technology is derived from two words: financial services and digital technology. In simple words, FinTech is the innovative use of technology in the formation and delivery of financial services. FinTech encourages the use of digital technology in…
Affordable and Clean Energy The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. The 17 SDGs integrate and recognize that action in one area affects outcomes in others, and development must balance social, economic, and environmental sustainability. They recognise that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change…
No strategy to support export and remittance issues The Rs14.460 trillion federal budget of Pakistan has been presented in the National Assembly; which is now ranked 47th on the world economic map. The budget apparently did very little to ease the ever-increasing economic pressures on the middle class. It is business as usual in the nature of fire-fighting marked by the absence of any strategy to shore up falling export earnings and worker remittances or undertaking import substitution. Exports declined by 9.9 percent during July-March to $21 billion compared to $23 billion in the same period last year. Simultaneously, remittances…
Global climate change has significant implications for agricultural production worldwide. It refers to long-term shifts in Earth’s climate patterns and average temperatures due to human activities and natural processes. It is primarily driven by the increase in greenhouse gas concentrations in the Earth’s atmosphere, mainly carbon dioxide (CO2) from burning fossil fuels, deforestation, and other industrial processes. The greenhouse gases trap heat from the Sun, leading to a phenomenon known as the greenhouse effect. The consequences of global climate change include rising temperatures, melting polar ice caps, sea-level rise, more frequent and intense extreme weather events such as hurricanes, drought…
Logistics are the lifeblood of international trade, and trade in turn is a powerful force for economic growth and poverty reduction. Logistics needs have evolved significantly in recent years. The global pandemic saw changing customer demands paired with unprecedented supply chain disruptions. According to an EY survey, 57% of businesses were affected by serious disruptions, while 71% saw demand for their products rise. Increased visibility and efficiency became top priorities, as more and more transactions moved online and expectations around delivery rose. But, in this post-pandemic world, needs have changed. On April 21, 2023, the World Bank released recently its…
Pakistan is likely to make significant progress in the coming years The concept of consumer finance dates back thousands of years, to the earliest civilizations in Mesopotamia and Egypt. In these societies, merchants and moneylenders would provide credit to customers who needed to purchase goods or services but did not have the immediate funds to do so. Over time, this system evolved and spread throughout the world, becoming a key feature of many different economic systems. In the middle ages, consumer finance was largely controlled by the Catholic Church, which forbade the charging of interest on loans. This meant that…
Islamic finance is a unique system of financial management that is rooted in the principles of Islamic law, also known as Shariah. It is a rapidly growing and dynamic sector of the global financial industry, with an estimated total global assets of over $2 trillion as of 2022. Islamic banking finance has gained significant attention in recent years due to its ethical and socially responsible approach to financial transactions, which are guided by the teachings of Islam. History of Islamic Finance Islamic finance has its roots in the early Islamic period, with principles that were established over 1,400 years ago.…
Islamic finance and traditional interest-based finance are two different systems of managing financial transactions and investments, with distinct principles and practices. The comparisons include: Underlying principles: Islamic finance is based on the principles of Shariah, which is the Islamic legal framework derived from the Holy Quran and Sunnah. It promotes ethical and socially responsible financial transactions, emphasizing fairness, transparency and risk-sharing. In contrast, traditional interest-based finance is based on conventional economic principles and does not have specific ethical guidelines. Prohibition of interest (Riba): Islamic finance prohibits the charging or paying of interest (Riba). According to Islamic teachings, money should be…
Poverty is the most significant issue that affects millions of people around the world. Poverty alleviation or reduction is one of the world’s most important challenges, and it is proposed the private sector has an important role to play in creating the economic growth, employment and purchasing options needed for significant poverty reduction. Poverty is highly correlated with many negative measurable aspects of standards of living and therefore reducing poverty can have a positive impact on the lives of millions of people around the world. How poverty could be alleviated? There’s no one simple process for achieving this goal, but…
Poverty is an economic condition and applies to those whose income falls below the poverty line, which is the income needed to meet one’s basic needs such as food, water, shelter and clothing. Other factors can be taken into consideration, such as economic stability, income security, and the predictability of an individual’s continued means to meet basic needs. While poverty is something that crosses all borders, countries’ poverty rates can differ widely. The poverty rate is the percentage of adults in a country that fall below the poverty line. Once a country has a high percentage of its population that…
The Presidential Address to the All India Muslim League on December 29, 1930 at Allahabad Quaid-e-Azam Muhammad Ali Jinnah is often considered to be Jinnah’s definitive statement on the Two-Nation Theory. He declared that Muslims and Hindus were two separate nations and that the only solution to their differences was the creation of a separate Muslim state. Although the Two-Nation Theory was coined by Sir Syed Ahmed Khan who was an Indian Muslim philosopher and social activist in the late 19th century. He believed that Hindus and Muslims were two separate nations with distinct cultural and religious identities and that…
The central bank plays a very important and crucial role in formulating and implementing monetary policy for a country. It refers to the actions taken by a central bank to control the supply and demand of money and credit in an economy with a prime objective to achieve certain macroeconomic objectives, such as price stability, full employment and economic growth. The central bank’s monetary policy involves several key components, which include: Setting interest rates: The central bank sets the policy interest rate, which influences the interest rates that banks charge on loans to consumers and businesses. It is one of…
Pakistan has a rich and diverse market for brands, which reflects in its leading brands. It has flourishing business communities and several homegrown brands that have made a name for themselves both domestically and internationally. These brands represent different industries, such as textiles, food, and electronics, among others. While there are some challenges that these brands face, there are also many good prospects too; that they can take advantage of to expand their businesses. Thousands of Pakistani brands; however appending below are a few prominent ones: PSO, Engro, Dawlance, National foods, Nestle, Shan Food, Khaadi, Gul Ahmed, Coca Cola, Servis,…
ChatGPT has taken the world by storm. ChatGPT is the brainchild of OpenAI, an artificial intelligence research company. Its mission is to develop a “safe and beneficial” artificial general intelligence system or to help others do so. It is being visited by 650 million times since its release in November 2022. Approximately 25 million people use it daily. Technically speaking, ChatGPT is an AI-powered chatbot that employs GPT 3.5 model (Generative Pre-Trained Transformer) to provide human-like responses. Developed by Open AI, it’s capable of dialogue-based interactions, thanks to its NLP (Natural language processing) and machine-learning techniques. In simple terms, ChatGPT’s…
Poverty and unemployment are the two major issues prevailing in developing countries including Pakistan. One of the identified constraints i.e. lack of access to financial services makes the people unable to come out of poverty. Poverty remains a serious concern in Pakistan, particularly in its rural areas. Inadequate access to basic services and financial and other resources; disempowered communities, particularly the exclusion of women from the public sphere and the development process; low social capital; ethnic and religious strife; a spate of natural calamities in recent years; have all contributed towards the persistence of poverty in the country. The preliminary…
The historic challenges tested the global economy in 2022, from Russia’s invasion of Ukraine and the sharp slowdown in China to surging inflation and rising interest rates. Challenges and cataclysms witnessed by the world during the last three years, mostly due to Covid-19 and unpredicted climate change and other ongoing issues, are unprecedented. Every country from Australia to America and from Canada to Chad has seen wearisome and difficult times. The after-effects of Covid-19 still persist, giving rise to new global economic chaos. High inflation and supply line nightmares coupled with uncontrollable prices of essential food items are the issues…
Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades. The cost-of-living crisis, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook. Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic. Global inflation is forecast to rise from 4.7% in 2021 to 8.8% in 2022 but…
Pakistan ranks 122 in the logistics performance index which is the lowest in South Asia. The market of 220 million consumers and international geographic location connects Pakistan with the neighboring countries via ports, borders and air ports. The market size and the location provide immense opportunities both at individual and macro level for trade, natural corridor for transit trade, supply chain inclusiveness, e-commerce. Yet, this is possible only with an efficient and modern transport and logistics sector. Globally the logistics are declared as an important component of any economy. Several countries have efficiently reduced the cost of logistics with supporting policies and…
Prof Dr. Leonard Mlodinow , an American theoretical physicist and mathematician, screenwriter and author. He is famous for his work on the quantum theory of light inside dielectrics. In his latest book “Emotional: How Feelings Shape Our Thinking”; he wrote The secret to living a happy and successful life is to manage our emotions before they control us. In his opinion, emotions are just as critical as logic in our decision making. Emotions helped our species survive and thrive. Even ‘negative’ emotions like anxiety or anger are beneficial in moderation. Indeed, entrepreneurs look for better ways of doing something because they’re upset, angry, or frustrated…
Early Childhood Education (ECE) is the holistic development of a child’s social, emotional, cognitive, and physical needs. UNESCO’s (United Nations Educational, Scientific and Cultural Organization) mission is “to contribute to the building of peace, the eradication of poverty, sustainable development, and intercultural dialogue through education.” As per UNESCO’s manifesto: “Early childhood care and education (ECCE) is more than preparation for primary school. It aims at the holistic development of a child’s social, emotional, cognitive, and physical needs to build a solid and broad foundation for lifelong learning and well-being. ECCE can nurture caring, capable and responsible future citizens.” Early childhood education (ECE)…
Earth’s climate is now changing faster than at any point in the history of modern civilization, primarily as a result of human activities. Global climate change has already resulted in a wide range of impacts across every region of the country and many sectors of the economy that are expected to grow in the coming decades. Climate change refers to a change in average weather conditions, or in the time variation of weather in the context of longer-term average conditions. It has been proven that climate change is related to some major forms of environmental pollution (e.g., air pollution, water…
2022 has arguably been one of the most challenging years, the world has experienced in modern times. It’s hard to downplay the scale of the geopolitical and economic uncertainty facing every one of us – from individual households to governments and business leaders. The global economic outlook has deteriorated amid high inflation, aggressive monetary tightening, and uncertainties from both the war in Ukraine and the lingering pandemic. Global growth is forecast to slow from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023. This is the weakest growth profile since 2001 except for the global financial crisis and…
Ultimate Guide on Car Financing Setback State Bank of Pakistan has made significant adjustments in the prudential regulations, in an apparent attempt to control consumer financing in the country, recently as Pakistan is already facing continuous escalating in trade and current account deficit. The financial experts have sharply reacted to this step as they feel that it will have adverse effects and literally going to halt the country’s economic growth. Pakistan has been running with a consistent trade deficit since 2003 mainly due to high imports of energy. The trade deficit sharply narrowed by 46.76% to $2.64 billion in July 2022 when…
Since June 2022, Pakistan is under continuous severe monsoon weather. It has been recorded to have received rainfall 67% more than normal levels this month. Up till the last week of August, the rainfall in the country is equivalent to 2.9 times the national 30-year average. These torrential monsoon rains have triggered the most severe flooding in Pakistan’s recent history, washing away villages and leaving around 3.4 million children in need of assistance and at increased risk of waterborne diseases, drowning, and malnutrition. Hundreds of thousands of homes have been destroyed, while many public health facilities, water systems, and schools have been destroyed…
The financial institutions are the most critical in today’s competitive and indeterminate economic environment. They propel the indolent assets in various productive channels of the economy. Therefore, it is important for every country to have efficient financial institutions for continuous growth. They can do both: improve their efficiency with the production of high outputs and /or by reducing their input costs. There are many types of efficiency concepts: 1- The Technical Efficiency: It determines the ability of financial institutions to maximize their outputs with the utilization of lower inputs. 2- The Profit Efficiency: It examines that how profitable a firm to its…
Literacy is a term that it is acknowledging that make to understand the development of the world. In other words, we also can say that literacy is essential and helpful to the people of a nation to observe the critical nature of the world. In this way, a nation will be able to communicate with the other world and share its emotions. Literacy plays important role in the development of a country. The UN SDGs The learning crisis has been on the global landscape for over a decade. It is the most critical challenge to the attainment of the Sustainable Development Goal (SDG) 4,…
Pakistan is striving to get reasonable policy to overcome its current economic crisis. A policy which might help to achieve the goal of sustainable development. We should search for economic opportunities where it has scope for engagement. Moreover, Pakistan desperately needs a reliable and trusted partner, which can act as an anchor. Impact of Global Economic Crises Pakistan’s current economic struggles demonstrates the impact of the global economy heavily due to the battle during a pandemic. Pakistan depends on imported commodities like others in countries e.g. Bangladesh, Sri Lanka or Ghana. The fellow Pakistanis are seeing food and fuel prices…
Total Public Debt of Pakistan is the debt owed by the government (including federal and provincial governments) serviced out of consolidated fund and debts owed to the International Monetary Fund. Pakistan’s total debt and liabilities jumped to Rs53.5 trillion. The increase in public debt alone, which is the direct responsibility of the government, was Rs. 19.5 trillion, as it amplified to Rs44.4 trillion by March 2022. The debt burden increased both in absolute terms and in terms of the size of national economy, underscoring that Pakistan’s economic viability requires serious long-term reforms. The debt issue has been politicized for the…
Investing can be a great way to build our wealth over time, and investors have a range of investment options, from safe lower-return assets to riskier, higher-return ones. That range requires us to understand the pros and cons of each investment option and how they fit into our overall financial plan in order to make an informed decision. While it seems daunting at first, many investors manage their own assets. But the first step to investing is actually easy: opening a brokerage account. Investing can be surprisingly affordable even if you don’t have a lot of money. To enjoy a…
Currently, the telecom industry is facing new opportunities and challenges presented by a dynamic regulatory, technological, and competitive environment. These trends are shaping the telecommunications industry, from more competitive broadband markets to cyber security in the 5G era. The telecom sector continued to make progress in augmenting its network capacity with additional fiber and wireless deployments to meet the constant demand for higher-speed networks. The potential for more competitive broadband markets. Faster mobile and fixed wireless connections create more viable alternatives to wired connections and new opportunities for bundled service offerings and business models for service providers. With ever-expanding options…
Alternative energy is energy that does not comes from the fossil fuels. The prime objective is to produces little to no greenhouse gases like carbon dioxide (CO2). This means that energy produced from alternative sources does not contribute to the greenhouse effect that causes climate change. These energy sources are referred to as “alternative” because they represent the alternative to coal, oil, and natural gas, which have been the most common sources of energy since the Industrial Revolution. These fossil fuels emit high levels of CO2 when burned to produce energy and electricity. Alternative energy, however, should not be confused with renewable energy, although many renewable energy sources can also be considered alternative. Solar power, for example, is both…
The total size of the federal government expenditure is estimated around Rs9.5 trillion, which is higher by nearly Rs350 billion or 4% over this year’s revised budget of over Rs9 trillion. There was an increase of 11% in expenditures if compared with the original budget of Rs8.5 trillion, which now has become redundant. The current expenditures are targeted to grow only over 2% to Rs8.6 trillion against the revised estimates. The gross revenue target has been set at Rs9 trillion – higher by 23% that the government wants to achieve through combination of taxes and non-tax measures, including the petroleum…
COVID-19 appears to be subsidized in some parts of the world. But even in these places, some of the pandemic’s damaging consequences are only now being assessed and understood. A new variant may yet trigger another chapter in the COVID-19 pandemic, and societies must be prepared to respond if and when that happens. As the world emerges from a painful pandemic, sales and profits for the world’s largest companies are higher, but many companies continue to face economic challenges related to bottlenecks in the supply chain and a surge in inflation. BrandZ Top 100 Global Brands 2020 reveals that the total brand…
The COVID-19 crisis continues to have a significant impact on individuals, society, businesses, and the wider economy across the globe. The insurance industry has no exception. As the global economy recovers and responds to the pandemic, insurers have also faced several challenges but also see the Impact of COVID-19 on the Global Insurance Industry in many new opportunities. Broadly speaking, the COVID-19 pandemic has swept westwards across the world starting from China, at the end of 2019, spreader all over the world at a lightning speed. In Asia, where the virus struck first, insurers took rapid action to respond to…
The COVID-19 crisis continues to have a significant impact on individuals, society, businesses, and the wider economy across the globe. The insurance industry has no exception. As the global economy recovers and responds to the pandemic, insurers have also faced several challenges but also see the Impact of COVID-19 on the Global Insurance Industry in many new opportunities. Broadly speaking, the COVID-19 pandemic has swept westwards across the world starting from China, at the end of 2019, spreader all over the world at a lightning speed. In Asia, where the virus struck first, insurers took rapid action to respond to…
The Islamic finance industry has seen exceptional growth in the last 30 years. Many optimistic predictions have been made regarding the enormous potential for future development. There has been continuous expansion of total Islamic finance assets as well as a sophistication of products, together with an ever-growing number of countries, companies, and institutions participating in the industry. In 2019, the total assets value of global Islamic finance markets amounted to about 2.88 trillion US dollars. The projected total asset value for the global Islamic finance markets will amount to 3.69 trillion US dollars by 2024. The pace of growth of…
Tuesday, April 12, 2022 was a black day in the history of the island nation Sri Lanka, as they defaulted on its $51 billion foreign debt. This move has been increasingly expected by international markets, particularly in recent months. It is Sri Lanka’s first default since its independence in 1948. The country’s 22 million population is facing crippling 12-hour power cuts, and an extreme scarcity of food, fuel and other essential items such as medicines, as its foreign currency reserves dwindled. Normally, most countries keep foreign currencies in reserves for making payments for these items, but the mismanaging invited a…
The concept of Microfinance is not new as it has had its occurrence in the long past. The term `microfinance’ and `microcredit’ are often used interchangeably but in reality, there is a difference between the two. Microcredit is the extension of small loans to entrepreneurs too poor to qualify for traditional bank loans. Microfinance is a broader concept encompassing not only the extension of credit to the poor but also the provision of other financial services like savings, cash withdrawals, and insurance. Hence, microcredit is a component of microfinance. Since the 1990s, Pakistan, Microfinance (MF) has started gaining importance, as…
Pakistan Day (March 23) is a powerful reminder of the country’s pliability against all the odds. This year we celebrated our national day with political uncertainty as well as economic brittleness. Today, the country is short on optimism about the future while the vision of its founding fathers remains unfulfilled. Political leaders both in power and opposition have to go a long way. They have to offer a long-term vision to define where they want the country should go. The challenges confronting the country remain intimidating. They are interconnected like an unbroken cycle. The government is spending much of its…
“Mark my word: A combination of airplane and motorcar is coming. You may smile, but it will come.” These were the golden words, said by Henry Ford in 1940. Since the start of recorded history, the dream to fly like birds could be found in myths, art and literature. Nearly every culture has its own version of winged angels, horses, dragons, as well as flying carpets etc. The world’s folklore is replete with stories of soaring gods and flying heroes who, unlike humans, are able to navigate. Leonardo da Vinci (1452–1519) the famous painter of Mona Lisa has depicted in…
The price of Brent crude oil, the international benchmark, hit $125 per barrel on March 7. It is the highest point since 2012. It is caused by the Russia’s invasion of Ukraine. Now, the price is about double what it was before the COVID-19 pandemic as well as six times above its low point in April 2020. During the Iran-Iraq war, between 1979 and 1981, the price of imported oil in the US is almost doubled. The price had also spiked a few years before that, when oil-exporting countries in the Middle East cut off deliveries to the US and other nations who were…
‘Digital’ has become one of the most commonly used buzzwords these days. Everything now has the precursor ‘digital’ attached to it, and digital banking is no exception. Digital banking means more than just going paperless. Banks are offering a new and improved customer experience and delivering faster and more efficient services. Banks are not known for being fast movers. Customers are still waiting for this new banking experience, which will bring many new features, including anytime and anywhere banking, ultra-fast response times, and ubiquitous advisors. The issue is not finding new digital solutions; the issue is the industry’s long-standing history…
It is a well-known fact that a person’s physiological and psychological adaptations to the environment start from conception and affect development throughout life. The Science of Early Child Development (SECD) is a knowledge translation and mobilization initiative designed to make current research accessible to anyone interested in learning more about the impact of early experience on lifelong health and well-being. Beginning as a tool to help share the emerging science about early brain development, SECD now offers a suite of online and offline media-rich educational resources with examples of research and programs from around the world. The science of early brain development can inform…
It is normally believed that cricket was invented during Saxon times in the Weald, south-east England. The first reference to cricket being played as an adult sport was in 1611. Village cricket was developed in 17th century the first known game in which the teams use county names is in 1709. In 1744, the first Laws of Cricket were written and subsequently amended in 1774, when innovations such as lbw, a 3rd stump, the middle stump and a maximum bat width were added. The famous Marylebone Cricket Club (MCC) was established in 1787 at Lord’s. It became the custodian of…
A credible statistics is instrumental in planning and economic development. Although it was too late but rebasing is an appreciable act on the part of the government. Base rate is decided in order to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers. Loan pricing will be done by adding base rate and a suitable spread depending on the credit risk premium. The United Nations has developed the System of National Accounts (SNA/1993) for standardizing the national income accounting across the globe. The National Income Accounts (NIA) are comprehensive,…
Globally, travel and tourism are the significant contributors to a leading sector for job creation, socio-economic and cultural development worldwide. In many countries, tourism and leisure industry plays a critical role as a strategic pillar of the economy’s GDP. However, it has also become the most vulnerable industry member. Before COVID-19, travel and tourism had become one of the most important sectors in the world economy, accounting for 10% of global GDP and more than 320 million jobs worldwide. At the inception of jet age in early 50’s only 25 million people took foreign trips. By 2019, that number had…
The swift development of effective vaccines against COVID-19 was an unprecedented scientific achievement. But production challenges, vaccine nationalism, and variants such as Omicron are the hurdles. The global efforts to develop and distribute an effective vaccine produced several safe and effective options. The accelerated development of multiple vaccines is unprecedented; the process typically takes eight to fifteen years. However, the immunization of a critical mass of the world’s population, continues to confront challenges, including dangerous new strains of the virus, such as omicron; global competition over a limited supply of doses; and public hesitation about the vaccines. Global vaccinations status…
The COVID-19 pandemic had disrupted both supply and demand sides of an interconnected world economy. Lockdowns, travel and trade restrictions affected nearly all aspects of cross-border economic activity. Global supply chains were forced to acclimatize. Foreign direct investment became slowed. Trade was hit hard as demand fell. Financial vulnerabilities were heightened. Overseas migration and worker remittances were severely disrupted. And tourism, important to many of the region’s economies, was particularly hard hit. As this global pandemic has slowed down the progress, it surge as more and more have turned to digital communications for ‘work from home’ contexts. It is more…
Education is a particularly challenging issue in the context of the pandemic. The global disruption to education caused by the COVID-19 pandemic is without parallel and it has brought substantial interruptions to education across the globe. Its effects on learning have been severe. The crisis brought education systems across the world to a halt. This pandemic has affected educational systems worldwide, leading to the near-total closures of all types of educational institutions i.e. early childhood education and care, primary and secondary schools, colleges, universities etc. Most governments decided to temporarily close educational institutions in an attempt to reduce the spread of COVID-19.…
The current year as well as the preceding years has seen a series of crisis that will mark the modern history. The efforts from states to shed-off the worst effects of COVID-19 in global financial markets, warning heightened conflict between states, is waged by proxy through the override of commercial contracts by national security law, in the contentious allocation of EU recovery funds, and the China policy for Joe Biden administration. These developments has highlighted the importance of role and extent of new and old geopolitical tensions. Different from classical geopolitical disputes, these conflicts are taking place in a highly…
In businesses, when projects fail, the blame comes on poor planning and Lack of communication. This is the reason why 66 percent of the projects are not expected to get completed on time or budget. Analytics has become the buzzword of this decade. Almost every business type is focusing on using it to change the way it makes decisions and wanted to hire business analytics professionals. The reasons behind this swift drive are need, availability and affordability. Businesses are in constant pressure to innovate due to the increasing competition and customers have become more demanding. So, to survive, managers must…
The State Bank of Pakistan (SBP) made an unexpected move by increasing its benchmark interest rate by 150 basis points to 8.75 percent in its announcement on November 18 as the central bank facing surging inflation and other challenges regarding stalled International Monetary Fund (IMF) loan facility. The central bank noted there was a need to proceed faster with the normalization of monetary policy to counter inflationary pressures and maintain price stability as inflation had reached 9.2% in October, compared to 8.4% at the time of the last meeting, mainly driven by prices of food & non-alcoholic beverages and housing…
The unprecedented tale of Pakistan’s power sector has been a tale of institutional weaknesses, weak governance and a lack of financial sustainability. The result has been decades of power outages and expensive electricity thanks to the incompetent corporate governance and implausible financial management in country’s power companies. This has led to a chronic shortfall between inflows and outflows, which are commonly known as circular debt. The developing economies are facing issues due to non-natural energy crises. It is the evidence of the fact that there are flaws and inconsistencies on the part of public value agents in keeping pace with…
Access to at least an adequate amount of nutritious food is the most basic of all human rights. However world is not that just. War, poverty, crimes, hunger; with all of the injustices that exist in today’s world, it is important to acknowledge the existing injustices and view them as serious issues that need to be resolved, it is equally important for us to realize our own part in seeing those solutions become part of reality. Food security is the measure of an individual’s ability to access food that is nutritious and sufficient in quantity. It must also meet an…
In the first quarter of 2020, the world was faced with Covid-19 pandemic. Globally, factories were shut down, trade was severely disrupted, stock markets crashed, airports all over the world were deserted, and businesses remained closed to contain the coronavirus outbreak. Investors have started becoming concerned about their money invested in companies. Economies around the world have been experiencing an economic decline similar to the great depression of 1930s. The Covid-19 pandemic has created unprecedented recessionary impact on global GDP. The role of central banks Central banks across the world are responsible for maintaining price stability as their prime objective,…
Poverty is a universal undeniable fact. It is supposed to be the most injurious economic and social problem of mankind since inception and is the mother of all human rights violations. It not only effects individuals but also the whole society in a very destructive way. The international poverty line is currently set at $1.90 a day which is the universal standard for measuring global poverty. This line helps measure the number of people living in extreme poverty and helps compare poverty levels between countries. According to the World Bank estimates out of 7.9 Billion of world population about 9.2% of…
Supply chain and logistics industry have been directly affected by the Covid-19 pandemic. As an integral part of value chains, both within and across international borders, logistics firms facilitate trade and commerce and help businesses get their products to customers. Supply chain disruptions to the sector caused by the pandemic could, therefore impact competitiveness, economic growth and job creation. The pandemic has exposed the fragility of matters and operations in the corporate sector, and has also brought new challenges for them. Businesses have also attempted to adjust towards the transformation of the customers and suppliers paradigm, while at the same…
Human activities have increased carbon dioxide (CO2) emissions, driving up temperatures. Extreme weather and melting polar ice are among the possible effects. Though there have always been natural variations in the climate. But according to scientists temperatures are now rising at an alarming rate – and it’s caused by human being. The world is about 1.2°C warmer than before people started using oil, gas and coal to power factories and transport and heat homes. The greenhouse gases released by burning fossil fuels trap the Sun’s energy, pushing up temperatures. Impact of Climate Change Climate change will transform the way people…
There’s no doubt that COVID-19 has changed our daily lives. This pandemic is difficult for everyone. Even those who have managed to keep their jobs are feeling the financial. Those who haven’t been laid off may be wondering whether they’re next on ‘right sizing streak’. And with the economy largely being shut down, finding a new job is a seemingly impossible task right now. The COVID-19 crisis has caused several inconveniences for entrepreneurs and it has affected many sectors negatively. The strategic decisions made during this time are crucial and will define the future of the companies. However, it is…
The Pakistani banking industry is underway of digital transformation serving the financial inclusion, changing the customer’s expectations and their interactions to make the fulfilment easier, faster, transparent and secured. Though, Pakistani banks have been bit stalled in prescriptive regulatory compliance in the customer relationship journey; however, in the coming years, leading banks will operate as digital financial superstores that re-designed the line between technology companies and banks. In the next decade, banks will move towards determined, integrated and more secured solutions for its customers. Financial inclusion, alignment of the regulatory framework with technological innovation, facing cybersecurity threats, and frauds and…
Cryptocurrencies are attaining mainstream acceptance, with Bitcoin’s price reaching record levels as investors, such as Elon Musk, are pouring funds into it. The Morgan Stanley, one of the biggest US bank, is offering its wealth management clients access to bitcoin funds. Recently, the Khyber Pakhtunkhwa government is planning to build two hydroelectric-powered pilot “mining farms” to capitalize on a bullish global cryptocurrency market. Despite the “ban” on investing in cryptocurrencies, Bitcoin (and crypto-mania) has now fully penetrated in Pakistan. Both mining and trading in cryptocurrencies currently exists in a legal grey area in Pakistan. In 2018, the State Bank of…
The Budget 2021-22 is the third issue of Imran Khan’s government. Federal Minister for Finance and Revenue Shaukat Tarin was expected to explicate new pro-growth directions of the government. It reflected with fiscal allocations that are in agreement with the International Monetary Fund (IMF) while encouraging the existing and new enterprises. Apparently, from the Budget speech it appears that Mr. Tarin has been successful. However, a critical evaluation is required to justify this. Though the PTI government has faced lots of economic challenges, multiplied by the Covid-19 but it has successfully progressed from recovery and stabilization to sustainable growth. The…
The prevalent energy crisis has severely affected the economy and state affairs and earliest possible steps at the right time can be a springboard for this resource rich country. Renewable energy and alternative energy are the energies produced from natural resources such as sunlight, wind, geothermal heat which are naturally renewable as they can be replaced and reproduced naturally. Pakistan has at different levels initiated steps to calculate the required energy and maximum potential generation capacity from abundant resources. Nevertheless, the costs associated with these options and whether every available energy option generates pollution which should fall below tolerable level…
The Covid-19 pandemic has affected about 210 countries with more than 166 million confirmed cases and over 3.44 million deaths across the globe including Pakistan. Till the last week of May 2021, the overall number of global coronavirus cases has surpassed the 165.2 million mark, while the deaths have increased to over 3.42 million. The US accounted for the world’s highest number of cases and deaths at 33,055,801 and 588,531 respectively. India came in second place with 25,772,440 infections and 287,122 deaths. Brazil is on third position in the list of the worst affected countries. It has more than 15,894,094…
Monetary remittances play a significant role in alleviating poverty as Remittance inflows can contribute significantly to a country’s economic well-being. Pakistan’s remittance inflows help in not just economic growth but also in improving social conditions. It serves as a catalyst for investment in the country, which in turn induces a cycle of growth-promoting production, exports, consumption, income, and further investment in turn. Factors to boast remittances The important factors to consider when transferring money are the speed of transfer, the strength of connectivity of the network through which the funds are transferred, the reliability of the remittance service provider, and…
For centuries, there was no need for Islamic finance as there was no financial system existed to “Islamize.” Up until the second half of the 19th century, the vast majority of the Muslim population around the world was unbanked and the prohibition of interest was applied on transactions by tradition rather than by law or regulatory bodies. During the colonial era, Western banks and financial institutions penetrated Muslim countries and imposed interest-based methods on the Islamic world. In the 1940s and 1950s, independence movements pushed for the revival of Islamic culture and religious scholars in countries such as India, Pakistan…
The Pakistan’s economy has been characterized as unstable and highly vulnerable to external and internal shocks. However, the economy proved to be unexpectedly resilient in the face of multiple adverse events. The economy of Pakistan is the 22nd largest in the world in terms of purchasing power parity (PPP), and 45th largest in terms of nominal gross domestic product. Pakistan has a population of over 220 million giving it a nominal GDP per capita of $1,186 in 2020-21, which ranks 154th in the world and giving it a PPP GDP per capita of $5,839 in 2019, which ranks 132nd in…
COVID-19 has accelerated digitization of banking as customer expectations change during the pandemic. This potential digital change would also help banks cope with the tougher operating environment the pandemic has brought. For the longer term it will be a fundamental step in boosting profitability and returns in the sector. Banking sector is becoming more and more functional providing us with advanced easements and facilities. We are witnessing unstoppable transformation in the ground of digitalization. Certainly, customer satisfaction and personalization of products’ sales became a key-factor to be a successful player in this environment. Over the years, customers are becoming increasingly…
Sports have long been an integral part of our culture, from the earliest form of football in ancient China, Cùjū, to the spectacle of the Colosseum in ancient Rome. Sports and entertainment leaders around the globe have long understood the importance of atmosphere and excitement in keeping fans happy and engaged. Infectious diseases present an omnipresent threat to the health and safety of the global community. In 2020, the COVID-19 pandemic that began in China in 2019 swept around the world imposing unprecedented impacts on all the sectors of the world economy while the multibillion-dollar sports tourism industry was hit…
The global economy is emerging from one of its deepest slumps and beginning a passive recovery after the distressing health and economic crisis caused by COVID-19. Policymakers are facing tough challenges in debt management, budget policies and central banking as they are trying to ensure that this still-fragile global recovery pickups momentum sets a substance for vigorous evolution and development in the coming time. Growth in global Emerging Market and Developing Economics (EMDEs) output is expected to expand 4% in 2021, however, it is still remain more than 5% below of pre-pandemic projection. Global growth is projected to moderate to…