Winter season in Pakistan is knocking the door. In fact it has already started in some parts of northern areas. This year again we are expecting another gas crisis. Energy shortfall and disputes over its allocation have become regulars feature during winter season; as there is 40% increase in gas demand. Around 40 percent of Pakistan’s energy needs are being met by natural gas. The power sector consumes 43 percent of the total natural gas available in the country whereas the residential domestic customers as well as the sector and fertilizer industry are consuming 21 percent each. Sindh is the…
Author: Nazir Ahmed Shaikh
Pakistan can become important part of China’s futuristic technologies On October 07, 2019, the President, Dr. Arif Alvi, has promulgated an ordinance for the establishment of the China-Pakistan Economic Corridor Authority (CPECA) to accelerate the CPEC-related activities, coordination among stake holders, timely completion of the corridor’s projects and to look for new initiatives for development. Furthermore, it would unleash the potential of inter-related production network and comprehensive and global value chains through regional as well as worldwide connectivity. Currently Pakistan traversing the changing global power equations and the Kashmir issue and CPEC seems to be the positive way forward and…
The consumer goods sector includes a wide range of retail products purchased by consumer right from food and clothing to luxury items such as jewelry and electronics. While overall demand for food is not likely to fluctuate, however, the specific foods consumers purchase can vary significantly under different economic conditions. Consumer spending, another term for voluntary private household consumption or the exchange of money for goods and services,varies greatly depending on a number of economic factors. The economic factors that most affect the demand for consumer goods are employment, wages, consumer confidence prices and Interest rates, effect of invisible hand,…
Every company and organization operating today is different; however all are facing a common challenge i.e. need for connectedness and access to real-time insights across processes, partners, products, and people. The term “Industry 4.0” refers to a new phase in the Industrial Revolution that focuses heavily on interconnectivity, automation, machine learning, and real-time data. It also referred as IIoT (Industrial Internet of Things), or smart manufacturing which the amalgamation of physical production and operations with smart digital technology, machine learning, and big data. It is creating a more holistic and better connected ecosystem for companies that focus on manufacturing and…
The nature of poverty is complex, and its causes are diverse. It is characterized by a lack of access to essential goods, services, assets, and opportunities to which every human being is entitled. There should not be any hunger, everyone should live in peace and have access to basic education and primary health care services. Poor households need to sustain themselves by their labor and be reasonably rewarded and should have a degree of protection from external shocks. In addition, individuals and societies are also poor — and tend to remain so — if they are not empowered to participate…
Shipping as one of the world’s most global businesses bodes well at the zenith of world monetary movement. Transportation is viewed as the foundation of globalization and universal exchange, as 90% of the world exchange is helped through boats. Shipping is fundamental to the best possible operation of any nation’s economy and a crucial piece of a countries transport infrastructure. Today, the shipping industry is still facing a hard period due to macro economic conditions. Most of the shipping entities are struggling to survive these difficult times. There are clear signs of economic recovery in the other sector but on…
The first organized athletic events took place in Greece in 776 (BC), with the advent of the ancient Olympic games. The Olympics featured running races, throwing contests, and other competitive events, with the greatest athletes from the Greek empire competing. Interest in sports diminished during the Middle Ages but sports for entertainment reemerged around 1200 in various European countries. In France, for example, teams played a hockey-like game called la soule. La soule was discouraged by authorities because it was thought to be too rough, but the sport generated an interest in other games like tennis, which became popular in…
Over the past decade the blue economy has become a widespread buzz word. Though it refers to the control of the earth’s oceans and marine life, however, it has different and conflicting meaning for different people; hence have blurred definitions and applications. The blue economy is an ocean-based economic growth model designed to ensure sustainable use of the marine environment. It includes ‘traditional’ offshore activities (e.g. oil and gas development, shipping, fisheries) and emerging industries such as deep sea mining and renewable energy. The social acceptability of ocean based industries, sometimes known as ‘Social License to Operate’ (SLO), will be…
“We have undoubtedly achieved Pakistan, and that too without bloody war, practically peacefully, by moral and intellectual force, and with the power of the pen, which is no less mighty than that of the sword and so our righteous cause has triumphed. Are we now going to besmear and tarnish this greatest achievement for which there is no parallel in the history of the world? Pakistan is now a fait accompli and it can never be undone, besides, it was the only just, honourable, and practical solution of the most complex constitutional problem of this great subcontinent. Let us now…
Consumption is the process by which goods and services are put together for end user. Consumption is at the end of the line of economic activities that starts with an evaluation of available resources and proceeds through production of goods and services and distribution of goods and services. Pakistani society is becoming a consumer society. The economic development has brought about a revolution in values. The demand for luxury and branded products cannot be fully satisfied by domestic production. Pakistani consumers are facing copious westernization such as the demand for imported cosmetics, toiletries, electronic items which are perceived as luxury…
Personal finance is the management of financial resources. Saving helps us to overcome significant problems in our lives. To manage our income means to start a journey towards financial freedom. This does not necessarily mean having a luxurious life, but to adopt effective measures of achieving a certain comfort efficient management of money for each individual brings a qualitative growth. Money is a tool, the means by which we support our unique values and priorities. Therefore it is important to create a financial plan, savings strategies. Goals and opportunities for individuals to save are different and it is difficult to…
Currently, Pakistan’s circular debt stands at a whopping Rs1.4 trillion, which includes the loans accumulated by previous governments. The alarming source of this burden is the persistent IOUs that keep piling up among all the stake holders in the energy sector supply chain. This includes power distributors, power producers, as well as oil and gas companies – PEPCO (Pakistan Electric Power Company), IPPs (Independent Power Producers), K-Electric, Pakistan State Oil and Sui Southern Gas, to name a few. Circular debt occurs when one entity facing problems in its cash inflows holds back payments to its suppliers and creditors. Therefore the…
Though Pakistan is now 72 years old, still our economy is going through a transition phase. The stabilization policies are in place to ensure a stable macroeconomic environment which is vital for economic development. The government is pursuing wide-ranging reforms to improve the ease of doing business in the country and minimize the cost of stabilization measures. The former Governor, SBP, Mr. Tariq Bajwa, in his keynote address during Bloomberg Pakistan Economic Forum, on March 18, 2019 talked about “Financial Inclusion”. He said that it is an important instrument for inclusive economic growth and therefore, is also a high priority…
Agriculture sector have a great role in the economic development and prosperity of Pakistan. In the early time, it is considered to be a dominant sector but due to the political, social, environmental and climate conditions its production yield is continuously going down. The rural transformation pace remained very slow resulted in problems like food insecurity, poverty, unemployment, illiteracy etc. It is very important that focus should remain on raising food production through efficient irrigation and innovative technology, agriculture diversification, agriculture support services, etc. The macroeconomic stability is a fundamental pre-requisite for sustained economic growth. The country’s inability to achieve…
The current population of Pakistan is 204 million which is 2.65 percent of the total world population. As per the new National Human Development Report by the United Nations Development Program (UNDP); Pakistan is currently having the highest population of youth. Pakistan is termed as one of the youngest countries in the world and second youngest in South Asia, right below Afghanistan. A total of 64% of the total population is below the age of 30 while 29% of it belongs to the age bracket of 15 to 29 years. Any study of human development is incomplete without considering demographic…
Trying to stabilize the uncertain economic conditions of the country, the PTI government has set an ambitious tax revenue targets in the first full-year budget for Rs7,022 billion, for fiscal year 2019-20. Despite a massive Rs1.405 trillion tax plan, the federal budget sees no major change in the overall fiscal deficit during 2019-20, which is set to come in at a record Rs3.15 trillion or 7.2 percent of GDP. A spiteful range of taxes has been proposed on almost all sectors of the economy, in line with the International Monetary Fund (IMF) for a bailout package, with maximum focus on…
The history of use of waterborne vessels is as old as humans. Research has found the use of boats as early as 4000 BC. Now the 90 percent of world trade is being done through international shipping industry. Shipping is the life force for the global economy and with it the intercontinental trade, the bulk transport of raw materials, and the import/export of affordable food and manufactured goods would simply not be possible. It is estimated that around the globe more 53,000 merchant ships are transporting every kind of cargo, out of which 11,000 are bulk carriers. The world fleet…
The National Economic Council (NEC),the country’s highest decision-making body on economic policy, in consensus with federal cabinet is looking forward the various proposals that could create a revenue cushion of about Rs1.45 trillion in the next fiscal year, taking the year’s revenue target to Rs5.55 trillion from a dismal Rs4.2 trillion. Over Rs700 billion in additional revenue has to come from two areas viz sales tax and income tax. However, proposals are underway for increasing general sales tax by 1 per cent or 1.5 percent to yield over Rs350 billion. The proposed budget strategy paper estimated the next year’s federal…
Remittances plays a crucial role in Pakistan’s economy. According to World Bank’s report the projected Pakistan’s remittances growth to remain moderate at 6.2% due to significant reductions in inflows from Saudi Arabia and Gulf States. The country was ranked 7th amongst the top ten recipients of remittances globally in 2018 receiving $20.9 billion and with India ranked at 1st with $79.5 billion. The much needed inflow of dollars are like blood lifeline for Pakistan as it boosts foreign exchange reserves. Pakistan received overall remittances of $19.3 billion in fiscal year ended on June 30, 2017, down 3% compared with $19.91…
The Islamic finance industry has grown at double digits, in the past few decade, despite the weak global economic environment. It has been projected that by the end of 2020, it will reach $3 trillion in total assets with 1 billion users. Islamic finance can play a significant role in narrowing the gap of financial inclusion in Muslim countries. Malaysia has been a leader in developing innovative Shariah-compliant savings, credit, and investment instruments for low-income households. However Malaysia has also established specialized financial institutions offering only Islamic finance products (for example Bank Rakyat, the largest Islamic cooperative bank in the…
Poverty is like punishment for a crime you didn’t commit – Mathematician Eli Khamarov It’s a hardcore fact that a country in debt will not be able to afford good schools, and a poorly educated workforce will be less capable of fixing problems and creating conditions that will attract foreign investment. As per International Monetary Fund, World Economic Outlook Database (April 2019); Pakistan ranked 54 in the list of poor countries with $ 5,839 per capita, preceding by Bangladesh ranked 50 ($ 4,993). India ranked 68 with per capita $ 8,484. Microfinance services have emerged as an effective tool for…
Interestingly, the use of technology in insurance sector is far less as compared to other industries. The insurance industry inclines to operate along deep rooted traditional lines that have been slow to adopt digital tools and new business models. Outdated organizational structures and legacy technology have also obstructed the velocity of rate of change. Other industry sectors, such as retail, banking and travel are already venturing their prerogatives in digital landscape. However, the need for insurance hasn’t diminished and the tech startups and relatively new insurance companies are stepping into the gap and offering new digital alternatives to consumers who…
South Korea has become the first country in the world to commercially launch 5G networks, beating US and China who are also in the making of this technology. Soon after the launch of the service on early Wednesday the three top telecom providers of South Korea – SK Telecom, KT and LG Uplus began the 5G service. This new wireless technology will now be available in the Samsung Electronics Galaxy S10. SK Telecom appears to have the most extensive commercial deployment in South Korea to date with the services now available in 13 cities and counties throughout South Korea. Out…
Leadership is not about a title or a designation. It’s about impact, influence and inspiration. Impact involves getting results, influence is about spreading the passion for work, and inspire team members – Steve Jobs Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is also defined as the capacity to influence a group towards the realization of a goal. Leaders are required to develop future visions and to motivate the organizational members want to achieve the visions. In corporate world, leadership is a process by which an executive can direct, guide and influence the behavior and work…
“We make our own destinies,” Shamim Akhtar, Pakistan’s first commercial truck driver said. “If I had sat at home, I would have had no future. I worked hard to get this far,” she added. “You just need courage and confidence to remove barriers and hurdles from your way to prove yourself,” she said, adding that from dishwashing to truck driving, the journey had been long and really strange, but now everyone encourages her. The 53-year-old single mother said that it was imperative to empower women in all sectors of life so that they could be economically independent in their lives.…
There is no doubt that construction sector always has a strong impact on the entire economy and social activities of any country and the application of supply chain strategies are considered to be helpful in achieving higher competitiveness of construction companies. Construction is a worldwide activity with many special characteristics and it includes projects of dramatically different types, sizes and complexities. It seems that the generic supply chains should be simple and linear, however, the construction sector is quite different. The construction supply chains and markets need to be integrated by any construction firm when it delivers a solution to…
Pakistan’s sustainable economic growth begins with a strong agricultural base since it is an agrarian economy. The agriculture sector contributes around 21% to the Gross Domestic Product (GDP) and employing more than 40% of the labor force. It provides food to the rapidly growing population and fiber to the industry. Besides, the sector is also a source of foreign exchange earnings. Pakistan has been blessed with a very fertile land. Approximately 38 million acres of land is being used for agriculture and forestry; supported by an irrigation system with 40,000 miles of canals. After the textile industry, the sugar industry is the only industry which can be called a model for…
It was certainly a blessing to have ‘chai-paratha’, with family and friends, on a chilly but pleasant morning, around 60 kilometers away from home, at Gharo. It was later justified as veracious decision to leave my cozy bedroom or clannish dining area on a windy Sunday morning to have a lavish desi breakfast, at Café Imran, after having a hectic 45 hours week work. It was a pleasant surprise for all of us see green fields on both sides of the road, just outside Karachi. Gharo, an agricultural town, feeding to the millions inhabitants of the metropolis of Karachi. It…
“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.”― Dave Ramsey Finance is always of great importance, be it in a business or in one’s everyday life. As it is important to manage risks in business, it is equally important to manage risks in life as well. The Banking & Finance Glossary, published jointly by SBP & IBP, define the Personal Finance as financial arrangements of the individuals or households concerning savings, deposits, installment loans or…