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…
Author: Nazir Ahmed Shaikh
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…
The COVID-19 has been declared pandemic as its outbreak is an ongoing global situation. Besides the human tragedy, it is severely impacting economies and industries all around the world. The coronavirus pandemic is causing disruption and economic hardship around the globe. From Asia to Europe to North America, no country has been spared by the virus effects and especially from its economic fallout. Almost every sector was affected by the pandemic. The globally integrated automotive industry is no different. Factory closures, supply chain disruption and diminishing demand have all taken their toll. And, as a result, some auto dealers will…
The greenhouse effect Climate change has become a considerable concern for humanity during this anthropocentric age. Scientists believe that the rate of global warming and climate change varies directly with the increase in the concentration of greenhouse gases, particularly carbon dioxide. The Greenhouse gases trap heat and make the planet warmer. Human activities are responsible for almost all of the increase in greenhouse gases in the atmosphere over the last 150 years. The largest source of greenhouse gas emissions from human activities is from burning fossil fuels for electricity, heat and transportation. Carbon dioxide enters the atmosphere through burning fossil…
In the modern era the driving business is about global networking, identifying and developing business opportunities, generating solutions and taking calculated risks. It is also about how integrity, reliability and resilience are needed to handle pressure and continuous regulatory changes. Leading change is about navigating people in an unstable work environment, promoting and inspiring collaboration, empowering team members to embrace change and drive their self-development, being self-aware and be willing to move into the role of a humble facilitator. Companies need leaders who can thrive despite setbacks and adapt to new ways of working, new business models and new forms of…
The UK left the EU on 31 January 2020 and is now in an 11-month transition period. On December 31, 2020 UK would ceased to member of EU. During this period the UK effectively remains in the EU’s customs union and single market and continues to obey EU rules. European Union (EU), international organization comprising 27 European countries and governing common economic, social, and security policies. Originally confined to Western Europe, the EU undertook a robust expansion into central and Eastern Europe in the early 21st century. The treaty was designed to enhance European political and economic integration by creating…
Education is considered to be vital source of nation-building. In order of ensure national cohesion, integration and preservation of the ideological foundation of the state, certain educational functions are the responsibilities include: curriculum, syllabus, planning, policy and educational standards. After 18th amendment education is being devolved to provincial mandate. Formation of National Curriculum Council (NCC) Besides capacity issues, working separately on Curriculum by provinces and areas not only created disconnect between the education and training of the children of nation but also affected quality and standards. For a nation to build itself, there was a need to adhere to a…
The entire world is at a war against COVID-19 pandemic. Globally, the magnitude of the negative impact is so huge that some experts have indicated it’s going to be even worse than “The Great Depression” witnessed from August 1929 to March 1933. Global scenario As the fear of the global economy moving towards a recession grows, it is likely that there will be a liquidity crunch coupled with high inflationary pressures. The conditions accordingly are unlikely to improve till 2021, with an expected $2 trillion shortfall in global income and a $220 billion hit to developing countries (excluding China). In…
As marketers consider how they may need to rethink their communications during the current coronavirus crisis, one suggestion from behavioral economics is that the framing can be more important than the messaging. Marketers can draw from behavioral science theories and how these can be applied to marketing strategies as new behaviors unlock new triggers. A key issue facing all marketers is whether they should continue their usual marketing activities in willful neglect of the situation. The typical positive approach may be shaking even though consumers are longing for normality, the depiction of an aspirational and jubilant lifestyle may be overshadowed…
Both the number of confirmed infection cases and deaths caused by coronavirus disease COVID-19 are still growing rapidly across the world. As of Oct 10, 2020 the total infection cases stood at 36.8 million and total deaths at 1.07 million. The total recovered cases are 25.6 million. The USA is still suffering most, but the recent cases in India has increased remarkably. While some countries have shown a declining trend in both new cases and deaths, a second wave is expected. COVID-19 is expected to significantly affect the global society in various ways, from both short-term and long-term perspectives. The…
Foreign direct investment (FDI) is now perceived in many developing countries as a key source of much needed capital, foreign advanced technology, and managerial skills. Realizing its importance to economic development, these developing countries have taken wide-ranging steps to liberalize their inward FDI regime and have succeeded in attracting substantial amount of FDI. Foreign direct investment refers to direct investment equity flows in the reporting economy. It is the sum of equity capital, reinvestment of earnings and other capital. Direct investment is a category of cross-border investment associated with a resident in one economy having control or a significant degree…
‘Money belongs to you, but resources belong to the society’. With growing awareness about corporate social responsibility (CSR) among stakeholders, achieving social goals is as important as delivering shareholder value and profitability. Corporate Social Responsibility or CSR is a concept that aims to make a company socially accountable to itself, its stakeholders, and the public at large. Through their CSR practices, companies are conscious of the kind of impact they have on all aspects of society including economic, social, and environmental. It is a way of giving back to the society for the various resources it uses to run its…
As the COVID pandemic furies, the world is entering into the deepest global recession since the Great Depression during 1930. Since it emerged in December 2019, the virus has spread to every continent. It was declared a pandemic by the World Health Organization (WHO) on 11 March 2020. As of July 21, 2020, there were 14.69 million confirmed cases in 187 countries with 610,110 deaths. As countries work to stalk its spread with different strategies like lockdowns, testing, isolation, treating patients and mitigation measures; the virus’ high reproducibility and complex nature threatens to overwhelm health systems in both the developing…
Economic growth and development depends on human capital as well as physical capital and also on the factors affecting productivity. Investments in these areas complement and reinforce each other. To be productive, a workforce needs physical capital, such as infrastructure, equipment and a stable well-governed economy. In turn, a healthy, educated workforce can earn more and invest more in an economy’s physical capital. The boundaries for skills is moving very swiftly hence bringing both opportunities and risks. There is mounting evidence that countries cannot achieve sustained and inclusive economic growth unless they strengthen their human capital. Moreover, they will not…
The consequences of the COVID-19 pandemic for the global economy, and financial sector in particular, are still unpredictable. It has crippled economic activities, overturned supply chains and crumpled the demands for goods. The virus has forced both the consumers and the businesses to spend and invest less. The consensus amongst most economists is the slow downing and eventually downward revisions in GDP growth targets. Countries have introduced stimulus programs to sustain economies, relief corporates and individuals; and banks are at the core of instigating such measures. Borrowers and businesses face job losses, slowed sales, and declining profits as the virus…
5G’s proliferation is unprecedented, leading to the amalgamation of ground-breaking technologies of this decade such as AI and edge computing. The inherent synergies of these technologies are not only pushing the performance of 5G for mission-critical services but also scaling down 5G NR with NR-Light to meet diverse use cases, while exploring the broader massive Internet of things (IoT) use cases. It has been estimated that by year 2022, the average consumer is expected to consume 11 GB of data per month, on their smartphone, against current usage of 2.3 GB of data per month. This is driven by explosive…
Islam is more than a religion. It is also a code of life that deals with social, economic, and political matters. Every Muslim is expected to live according to the Islamic code, or Shariah. Each issue addressed under Shariah is entwined with all other issues; therefore, economic matters are related to religion, culture, ethics and politics. Overview Islamic finance is a financial system which operates in accordance with Shariah or Islamic law. The primary difference between Islamic and conventional finance is the treatment of risk. Shariah prohibits certain elements that are common in conventional finance, such as interest and speculation.…
For last few weeks, the concept of herd immunity is making headlines in the international media with reference to COVID-19. Herd immunity is an epidemiological term usually reserved to describe how the population as a whole is protected from a disease depending on the levels of people vaccinated. What it is? Herd immunity (or community immunity) occurs when a high percentage of the community is immune to a disease (through vaccination and/or prior illness). So it is unlikely that disease will spread from person to person. The people not vaccinated (such as newborn and the immunocompromised) are offered some protection…
The microfinance sector in Pakistan has made significant progress in the last few years. The sector has grown rapidly, it has changed its orientation to one which is moving towards sustainability and it is operating within a policy and regulatory environment which is supportive. While microfinance is advocated as a strategy for poverty alleviation, the lending methodologies and client screening systems exclude the poor from many programs. Some MFIs suffer from pangs of consciousness about charging high interest rates to poor clients and prefer not to charge any interest rate (for example Akhuwat) or keep their interest rates at levels…
There are fundamental changes that happen from time to time; specially during times of war. But this time the enemy is a virus and not a foreign power. The COVID-19 pandemic has created a wartime atmosphere where sudden and unexpected changes seem possible. After many months of lockdowns, loss of life and the closing of global economy, the clouds of uncertainty are overcasting everything. Would the business houses reopen and the jobs come back? Would we be able to travel again? Would the supply of money from central banks and governments be enough to prevent a deep and lasting recession?…
Introduction Microfinance services have emerged as an effective tool for financing micro-entrepreneurs to alleviate poverty. It is a tool to enable poor to start their own business to survive in the society. It refers to savings, insurance, loans, transfer services, microcredit and other financial products to customers who have low incomes. As these does not have any physical collateral and have a higher risk in return payments of the borrowing money, therefore they have only small credit in views of financial institutions and the amount of money that they can borrow is relatively small. Especially in developing countries, microcredit makes…
Pakistan is 6th most populous country of world having a population of 219,652,490 people; which is 2.83% of the total world population. Pakistan covers an area of 881,913 km2 (340,509 sq. mi), approximately equal to the combined land areas of France and the United Kingdom. It is the 33rd-largest nation of the world by total area. Pakistan is one of those countries which have enormous rich natural resources. It is blessed with vast land, natural gas reserves, petroleum, extensive coal, iron ore, copper, salt, limestone and gold besides other natural resources, many of them hitherto undiscovered. In fact, according to one survey, Pakistan…
The governments and central banks world over readied more emergency measures to tackle the economic impact after spreading coronavirus on Friday, helping financial markets pare some of their steep losses, while more major events were canceled or postponed. US president even declared national emergency and set $50 billion fund to tackle the contagious disease. Till date (Friday March 14) about 138,000 people are affected worldwide and over 5,000 died, according to available reports. Experts warn that due to a lack of testing and unreported cases, many more people may be affected by the outbreak that emerged in the Chinese city of Wuhan…
The entire scenario of trade and commerce has been transformed in the last twenty years or so. The e-commerce industry is without a doubt the most lucrative business of the 21st century. It had long ago shifted from the reluctant offline experience to the easier and comfortable immersion. Here everything could be bought or sold just by clicking a button. The global e-retail is in constant growth since 2014. In 2017, e-retail commerce sales worldwide amounted to $2.3 trillion and e-retail revenues are projected to grow to $4.88 trillion in 2021 in 2018 e-commerce grew by 18 percent globally. Consumers…
The Islamic banking and finance system offers more ethical and efficient alternative to the interest-based conventional financial system. Islamic banking and finance institutions emerged in the Middle Eastern financial markets in early 1970s, based on models developed by Islamic economists over the past decades. Many Muslim countries, including Pakistan, adopted these models and launched Islamic banking institutions. Some Western banks also launched Islamic banking and finance products to serve their Muslim customers. Islamic banking is defined as banking system which is in consonance with the spirit, ethos and value system of Islam and governed by the principles laid down by…
Food wastage is the sum of food waste and food lost.It is an astonishing fact that every year around 36 million tons of food is being wasted in Pakistan. This includes food loss during production, post-harvest handling, agro-processing, distribution and consumption, every year. Due to extreme weather conditions in Pakistan, food loss is expected to be higher than computed by agricultural departments. Food waste is a very common features at wedding ceremonies. Marriage in Pakistan is an occasion where people spend very extravagantly. Even those hailing from the middle class consider it an opportunity to display their fortunes in the…