From bazaars to browsers, Pakistan’s brands don’t just sell — they stitch memories, spark stories, and fuel pride The sun dips low over Lahore’s bustling streets, casting golden streaks across a market alive with chatter and color. A woman haggles for a Gul Ahmed kurta, its threads whispering tales of tradition, while a kid nearby munches on fries from a KFC bag, grinning at the taste of something new. In a Karachi apartment, a tap on a phone screen sends a Daraz delivery racing through the night, carrying dreams in a cardboard box. This is Pakistan today — a land…
Author: Nazir Ahmed Shaikh
Brand choices in our country reflect youth aspirations, urban growth, and social media-driven visibility culture Pakistan, with its population exceeding 240 million as of 2025, presents a dynamic and rapidly evolving consumer market. This South Asian nation, characterized by a growing middle class, youthful demographic, and increasing urbanization, has become a fertile ground for multinational companies (MNCs) to establish their brands. These leading brands, often backed by global giants, compete fiercely with local Pakistani products, shaping consumer choices and responding to rising purchasing power. Leading Multinational Brands and Their Market Shares Pakistan hosts a variety of multinational brands across sectors…
March 23, 2025, marks another celebration of Pakistan Day, a commemoration of the Lahore Resolution of 1940 that laid the foundation for a sovereign nation driven by unity, self-reliance, and the pursuit of a better future. This day is not just a historical milestone but a clarion call to action, especially for Pakistan’s youth which is about 60% of the population under 30. It holds the key to the nation’s progress. As Pakistan navigates economic challenges, technological disruptions, and global competition, the ideals of March 23 resonate deeply with the burgeoning spirit of youth-led entrepreneurship. The Lahore Resolution envisioned a…
From Lahore Resolution to SDGs: Pakistan’s pledge for a prosperous tomorrow The Lahore Resolution, passed on March 23, 1940, envisioned a homeland where Muslims could exercise economic, social, and cultural freedom. This vision resonates with the SDGs’ holistic framework—17 goals aimed at ending poverty, protecting the planet, and ensuring prosperity by 2030. Pakistan was among the first nations to integrate the SDGs into its national framework, with a unanimous National Assembly resolution in February 2016, reflecting the same spirit of self-determination that fueled the Pakistan Movement. Today, as the nation faces climate crises, economic pressures, and social inequalities, sustainable development…
Islamic banking in Pakistan now holds 25% market share, with assets surpassing Rs9.9 trillion in 2025 With a population exceeding 240 million, predominantly Muslim, Pakistan offers a fertile ground for Islamic finance to flourish, yet it faces unique hurdles in achieving a fully Shariah-compliant financial ecosystem. Islamic finance, rooted in the principles of Shariah (Islamic law), is a system designed to promote economic justice, equity, and ethical conduct in financial transactions. Unlike conventional finance, which relies heavily on interest-based lending, Islamic finance emphasises risk-sharing, asset-backed financing, and the avoidance of speculative or unethical activities. In Pakistan, a country founded on…
With practice, anyone can strengthen their EI, leading to improved relationships and greater overall well-being Emotional Intelligence, often called EI or EQ (Emotional Quotient), is the ability to recognize, understand, and manage our own emotions while also being aware of and responding to the emotions of others. Think of it as a life skill that helps us navigate relationships, handle stress, and make better decisions — kind of like an instruction manual for dealing with feelings. Unlike IQ, which measures how smart we are with facts and logic, EQ is about being smart with emotions. It’s something we can all…
700 million people lived in extreme poverty in 2024, with progress slowing and 3.5 billion below $6.85 daily Pakistan’s poverty surged to 25.3%, pushing 13 million below the line, with 98 million under $3.65 daily In 2024, approximately 700 million people, or 8.5% of the global population, lived in extreme poverty, defined as surviving on less than $2.15 per day, with Sub-Saharan Africa accounting for two-thirds of this total. Despite progress in reducing extreme poverty from 36% in 1990 to 9.2% in 2022, the pace of decline slowed significantly, with only about 69 million people projected to escape extreme poverty…
New wave of managers transforming business A few years back, a Harvard Business Review’s (HBR) article argued that humans’ edge in “reframing” ensures their indispensability, and while AI has advanced since then, it’s not yet at a point where it can autonomously handle the nuanced, adaptive thinking managers often require. The concept that ‘AI won’t replace managers, but managers who utilise AI will outperform those who don’t’ reflects a growing consensus on the evolving role of artificial intelligence in the workplace. Indeed, AI won’t replace managers but will elevate those who use it—history and logic support this. However, the paradigm’s…
AI, fintech, and mobile platforms are reshaping the banking landscape, offering enhanced services and inclusivity The banking industry has undergone significant transformations and revolutionized over the past few decades, driven by rapid advancements in technology, paving the way for greater inclusivity, significant disruptions, and the widespread integration of artificial intelligence (AI). From the advent of online banking to the rise of mobile payments, technology has continually reshaped the way financial services are delivered and consumed. From mobile banking and digital wallets to artificial intelligence (AI) and blockchain, innovations in banking technology are not only improving efficiency and user experience but…
The unveiling of a more cost-effective artificial intelligence model by China’s DeepSeek has rattled the U.S. stock market this week. The repercussions were particularly felt during the week with significant losses for Nvidia, the leading Silicon Valley company renowned for its expensive semiconductor technology that fuels the AI revolution. The global investors dumped tech stocks on Monday Jan. 27 as they worried that the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of AI leaders evaporating $593 billion of the chipmaker’s market value, a record one-day loss for any company on Wall Street. Last week, Chinese…
Global food insecurity deepens after over 800m affected as WFP seeks $16.9 billion in aid The world food crisis is a complex and multifaceted issue that affects millions of people globally. It remains one of the most pressing global challenges, with the year 2025 marking a critical juncture in the ongoing efforts to ensure that all people have access to sufficient, safe, and nutritious food. The crisis is affecting over 280 million people daily, and acute food insecurity is projected to worsen in 16 hunger hotspots. As of 2025, the global food system is facing unprecedented pressures. Climate change, political…
Year of progress and challenges in transforming agri-food systems The year 2024 witnessed significant strides in the realm of food and agriculture, marked by a blend of achievements and challenges. One of the most compelling narratives of 2024 was the emphasis on transforming agri-food systems to be more inclusive, resilient, and sustainable. According to the Food and Agriculture Organization’s (FAO) “The State of Food and Agriculture 2024,” the concept of true cost accounting gained prominence. This approach advocates for the full accounting of the environmental, social, and economic costs associated with agri-food systems, thereby promoting more informed policy-making and consumer…
Time for thoughtful planning, strategic investments and a proactive approach to embracing change As we transition into 2025, global markets are undergoing a transformative period marked by innovation, cautious optimism, and a host of evolving challenges. For investors, entrepreneurs, and business leaders alike, grasping the economic landscape and identifying emerging trends is crucial for making well-informed decisions. Here’s a comprehensive outlook for the coming year. Looking back, January often sets the tone for the year ahead in financial markets. Expect initial volatility as investors assess earnings reports, inflation data, and central bank policies. Long-term trends will likely favor growth in…
Emerging technologies and green investments lead the charge in transforming industries and driving resilient economic strategies The global economy in 2024 has been characterised by a mixture of recovery and resilience, amidst ongoing challenges and uncertainties. As the world continues to navigate the aftermath of the Covid-19 pandemic, geopolitical tensions, and climate change, understanding the economic conditions of this year is crucial for projecting the future. In 2024, the global economy has shown signs of steady growth, albeit at a slower pace compared to pre-pandemic levels. The International Monetary Fund (IMF) projected a global growth rate of approximately 3.2%, reflecting…
AI revolutionises industries with breakthroughs in healthcare, finance, transportation, education and customer service innovation EU’s AI Act sets global standards, ensuring innovation while managing risks to safety, rights and ethics Artificial Intelligence (AI) has emerged as a transformative force, revolutionising industries, enhancing productivity, and driving innovation across various sectors. From healthcare and finance to transportation and entertainment, AI systems have demonstrated the potential to reshape our world. However, alongside the opportunities AI presents, there are significant risks that must be addressed to ensure these systems are safe, ethical, and trustworthy. Promise of AI: driving innovation AI’s ability to process vast…
Economic reforms, tech advancements and investor growth are driving Pakistan’s capital market towards prosperity Capital markets are financial markets that bring buyers and sellers together to trade stocks, bonds, currencies, and other financial assets. Capital markets include the stock market and the bond market. The capital market of Pakistan is an integral part of the country’s financial system, playing a crucial role in economic development and growth. It encompasses a range of financial instruments and institutions that facilitate the raising of long-term funds by businesses and the government. Objectives of the Capital Market The primary objectives of the capital market in…
Explore the evolving trade ties between Pakistan and the UAE, highlighting exports, investments, and future opportunities The trade relations between Pakistan and the United Arab Emirates (UAE) have been robust and multifaceted, evolving over the decades since Pakistan recognized the UAE in 1971. This report provides a comprehensive overview of the trade dynamics between the two countries, highlighting key aspects such as trade volume, major exports and imports, investment flows, and the broader economic and political context. In the early years, the trade relations between Pakistan and the UAE were characterized by the exchange of traditional goods such as textiles,…
Pakistan’s strategic location and economic potential position it well to attract transformative foreign investments (FDI) amid reform efforts Foreign investments have long been recognised as a crucial driver of economic growth and development. Pakistan, like many developing countries, faces numerous challenges in revitalising its economy. However, Foreign Direct Investment (FDI) and an increase in exports are two powerful catalysts that can significantly contribute to the country’s economic recovery. These elements are not only instrumental in revitalising sagging economies but also in setting a nation on the path to sustained economic development. The inflow of FDI signals investor confidence in the…
Exploring SBP’s role in inflation control, currency stability and financial confidence Introduction It was a usual sultry and humid evening in October. We all were back home after a hectic day and fighting with Karachi’s Monday evening frantic traffic. After the casual chat, we were having dinner and on TV there was news about SBP’s Monetary Policy. We came to know that the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) has decided to cut the key interest rate by 250 basis points (bps) to 15.0 per cent from the previous rate of 19.5 per cent. My daughter,…
From OPEC to renewables how critical interplay of factors influencing oil prices and their effects on national economies The economics of the International Oil Market encompasses the mechanisms of oil pricing, the intricate dynamics of supply and demand, and their profound impact on the global economy. Oil, as a critical energy resource, influences economic stability, international relations, and geopolitical strategies. The market is characterised by significant fluctuations in prices, driven by factors such as geopolitical tensions, OPEC production decisions, and emerging technologies in oil extraction. Understanding these dynamics is essential for grasping the complexities of contemporary global economic interactions. Historically, the oil…
The future of automobile industry hinges on technological innovations and the critical shift towards electrification and sustainability The global automobile industry is a pivotal sector that significantly influences economies, societies, and environmental policies worldwide. Encompassing the design, manufacturing, marketing, and sale of motor vehicles, this industry plays a crucial role in facilitating mobility and transportation across various demographics. Major automobile-producing nations, such as the United States, Germany, and Japan, contribute substantially to global economic growth through job creation, technological advancements, and tax revenues derived from automotive production and sales. Despite its economic benefits, the industry faces mounting challenges related to sustainability and…
Modernisation and financial inclusion vital for Pakistan’s banking industry growth Introduction The banking system in Pakistan plays a crucial role in the country’s economic development. It facilitates financial transactions, supports capital formation, and provides a stable environment for economic activities. Banking in Pakistan has its roots in the colonial era. After gaining independence in 1947, the State Bank of Pakistan was established to regulate the banking sector. Over the years, the sector has undergone significant reforms to address various challenges. The State Bank of Pakistan acts as the central bank, overseeing the operations of commercial banks, Islamic banks, microfinance banks,…
Pakistan and Saudi Arabia have enjoyed a robust and multifaceted relationship since the establishment of diplomatic ties in 1947. This relationship is rooted in shared religious, cultural, and economic interests, with both countries often supporting each other on international platforms. Saudi Arabia was one of the first countries to recognize Pakistan, establishing diplomatic relations in September 1947. The relationship was further solidified by a Treaty of Friendship signed in 1951, which formalized cooperation across various sectors including defense and economic support. This unique relationship has unsurpassed potential which, if fully tapped, can accrue benefits for both countries. KSA is also…
Inconsistent regulations, security issues, and red tape: key challenges foreign investors face in Pakistan’s business environment Pakistan, with a population of over 250 million people, is a country with a rich cultural heritage, diverse landscapes, and lots of potential to grow. Pakistan’s business and investment landscape poses considerable challenges, according to investors. Complex and inconsistent regulations, inadequate protection of intellectual property rights, and ever-changing taxation policies are some of the many business climate challenges cited by investors. Security concerns marked by internal and regional conflicts also undermine investors’ confidence in the protection and profitability of their investments. Pakistan’s economy remains…
The Civil society in Pakistan is largely hierarchical, emphasizing local cultural etiquette and traditional Islamic values that govern personal and political life. It is rich in cultural diversity and has a profound heritage that spans centuries. Its cultural tapestry is woven with threads of history, art, music, and traditions that reflect the mosaic of communities coexisting within its borders. The culture of Pakistan is based in the Indo-Persian cultural matrix that constitutes a foundation plank of South Asian Muslim identity. There are differences in culture among the different ethnic groups in matters such as dress, food, and religion, especially where pre-Islamic customs differ from Islamic practices. The region has formed…
Defining the private health sector necessitates a clear understanding of the concept of service delivery, types of private health actors and characteristics of the private health sector. The private health sector is the individuals and organisations that are neither owned nor directly controlled by governments and are involved in the provision of health services. It can be classified into subcategories as for profit and not for profit, formal and informal, domestic and international. There is increasing recognition of the private health sector within mixed health systems. However, private health sector recognition, scope, and definition are not consistent across health system…
The education system in Pakistan has faced numerous challenges over the years, leading to a continuous decline in its standards. Education is a fundamental right and a crucial element for the socioeconomic development of any nation. In Pakistan, however, the educational landscape is marred by various issues that hinder the growth and development of its human capital. It has faces critical challenges, which are believed to have been deepened by Covid-19 and natural disasters like floods and earthquakes. An estimated 22.8 million children aged 5-16 are out of school. Currently, Pakistan has the world’s second-highest number of out-of-school children (OOSC) with an…
Alternate energy, often referred to as alternative or renewable energy, encompasses energy sources that are not derived from traditional fossil fuels such as coal, oil, and natural gas. These energy sources include solar, wind, hydroelectric, geothermal, biomass, and nuclear energy. The significance of alternate energy lies in its potential to provide sustainable, environmentally friendly, and renewable energy solutions, essential for the long-term health of our planet and its inhabitants. Underdeveloped countries are looking for alternate energy resources for several key reasons: Energy Access and Security: Many underdeveloped countries face challenges in providing reliable and affordable energy to their populations. Renewable…
The annual budget is a cornerstone of a country’s economic policy. This document outlines the government’s decisions on increasing or decreasing expenditure in specific sectors. It also projects the revenue to be collected through taxes and other sources. Based on these estimates, the government allocates funds to various sectors, ministries, and provinces. Creating a budget involves an accounting process grounded in policy objectives. This process is divided into six key steps: Preparation, Authorization, Execution, Reporting and Monitoring, Review, and Policy Setting. While this approach appears comprehensive, errors in the initial steps often render the latter stages ineffective. A notable example…
Exploring advantages, disadvantages and future prospects with a focus on AI integration Genetically Modified Crops (GMCs) have become a significant aspect of modern agriculture, promising to address food security issues, increase crop yield, and reduce environmental impacts. However, the adoption of GMCs has sparked debates regarding their advantages, disadvantages, and long-term consequences on the environment, human health, and ecosystems. It has revolutionised modern agriculture, offering solutions to global food security challenges, improving crop productivity, and reducing environmental impacts. However, the development and adoption of GMCs have sparked debates regarding their advantages, disadvantages, and long-term implications for the environment and human…
Understanding the complexity, progress, and path forward Every year, on October 16th, the world celebrates World Food Day. This global event is a powerful reminder of food’s critical role in our lives. Beyond being a source of sustenance, food is a fundamental human right and a cornerstone of cultural identity. World hunger is not simply about food but there are a variety of reasons why this is such a complex problem worldwide with far-reaching consequences. While solving world hunger is a big challenge, we can still make significant progress by taking action in various ways. By addressing issues like poverty,…
Adapting to technological advances and changing consumer preferences in a dynamic market Market size is projected to reach approximately $1.30 billion by 2030 Consumer finance is the process of borrowing money from banks or other financial companies to purchase items for personal use. Consumers often borrow money from banks, credit cards, and online lenders. The most common example is a car loan. Generally, people use their income to pay for everyday expenses such as rent, utilities, food, and transportation. To purchase items, they need that are not an expense, they borrow money from banks, credit cards, and online lenders. The…
Understanding the economic forces and policy decisions shaping consumer lending and private sector borrowing Consumer credit in Pakistan decreased to Rs1,119,839 million in January from Rs1,120,491 million in December of 2023. Consumer credit in Pakistan averaged Rs535,413.34 million from 2006 until 2024, reaching an all-time high of Rs1,142,683.00 million in December of 2022 and a record low of Rs282,406.00 million in April of 2012. Total revenue is expected to show an annual growth rate (CAGR 2022-2027) of 9.97%, resulting in a projected market volume of $929.50k by 2027. The average revenue per download currently is expected to amount to $0.07.…
Adapting to change, embracing innovation and promoting social good The insurance sector is made up of companies that offer risk management in the form of insurance contracts. The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange for that protection on that uncertain future occurrence. As an industry, insurance is regarded as a slow-growing, safe sector for investors. This perception is not as strong as it was in the 1970s and 1980s, but it is…
Insights into dynamics, regulations and future trajectories Insurance companies in the UAE have increased premiums by up to 30% after the unprecedented heavy rains recorded in mid-April. Insurance industry executives say that demand and premiums for comprehensive insurance have also grown with some of them reporting a 100% jump in the post-rain period as third-party liability (TPL) doesn’t cover natural disaster damages to vehicles and homes, pressing owners to opt for costlier packages. The UAE recorded the heaviest rain on April 16, 2024 in 75 years, resulting in flooding in many parts of the country, especially Dubai, Sharjah and Ajman. Insurance…
The industry is likely to grow in 2024 due to its strong financial position and high oil prices Crude oil is one of the most sought-after commodities in the world. Its wide array of uses ranges from transportation fuels to the manufacturing of chemicals and pharmaceuticals. Oil is a dominant source of energy worldwide and oil companies supply billions of barrels of petroleum products daily to power transportation and industry. Hence the oil industry is one of the most powerful branches in the world economy and changes in benchmark oil prices have great implications for many manufacturing sectors and consumers.…
Embracing sustainability and innovation will be key to unlocking a resilient and prosperous future for Pakistan The oil and gas sector stands as a cornerstone of Pakistan’s economy, serving as a primary source of energy and revenue generation. In tandem, oil marketing companies (OMCs) play a pivotal role in the distribution and marketing of petroleum products, ensuring the smooth functioning of the country’s energy ecosystem. With ever increasing population of Pakistan, the gas demand has risen by around 6.6 bcfd. In 2022, the total gas supply in the country was 3.3 bcfd, comprising an indigenous supply of 2.63 bcfd and…
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…
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…