[dropcap]I[/dropcap]n the recent past Pakistan attained self-sufficiency in urea production, after having remained a net importer of the commodity for a long time. This not only helped in timely and ample availability of the commodity, but also saved the government from spending millions of dollars on its import and payment of billions of rupees subsidy. The successive governments ensured availability of gas (feedstock) at a discounted price. However, lately the operating environment has become anti-urea manufacturers with the imposition of GST and GDIC. At present the manufacturers are sitting on more than one million tons urea inventory. The government’s prejudice…
Author: Shabbir Kazmi
[dropcap]I[/dropcap]f one looks at the history of power sector in Pakistan, a few points are clear. These include: 1) a myth that the country has been persistently suffering due to the shortage of energy products, 2) the successive power policies have been introduced to serve the interest of local and overseas investors, 3) blatant theft of electricity and gas has been going on with the connivance of employees of utility companies, 4) regulatory authorities have failed in protecting the interest of consumers and remained subservient to the incumbent governments. ENERGY SHORTAGE Pakistan is blessed with an enormous potential of hydel…
PSX ENDS WEEK UP AMID INVESTORS WARY OF PANAMA CASE FINAL JUDGMENT Forthcoming earnings season likely to drive the market The benchmark index of Pakistan Stock Exchange posted a gain of 957 points for the week ended 21st July 2017. This translates into a 2.16%WoW gain as the market closed the week at 45,294 points. The market remained under pressure due to the news flows emanating from Panama Papers case hearing. Political uncertainty kept the investors on the sidelines. The average daily trading volume went down by 23%WoW to a little less than 134 million shares. The trading volume on…
[dropcap]T[/dropcap]he State Bank of Pakistan is the central bank of the country as well as the apex regulator of the banking sector. Prior to independence from the British Raj on 14th August 1947, the Reserve Bank of India was the central bank of the areas of South Asia, now comprising of Pakistan, India and Bangladesh. After the independence, Qauid-e-Azam, Muhammad Ali Jinnah directed creation of Pakistan’s own central bank that was named State bank of Pakistan (SBP). It was also inaugurated by the Father of Nation. At president its Head Office is located in Karachi on I. I. Chundrigar Road.…
[dropcap]B[/dropcap]anking formally started in areas now comprising Pakistan during the British Raj. After getting independence from the colonial era in 1947 a new country, Pakistan appeared on the global map. Very soon the Head Office of Habib Bank shifted to Karachi from Bombay. With the passage of time various other banks were established. After nationalization and amalgamation the commercial banks that emerged were: Habib Bank (HBL), United Bank (UBL), Muslim Commercial Bank (MCB) and Allied Bank of Pakistan (ABL). National Bank of Pakistan (NBP) was established as and still enjoy the status of a public sector entity. Prior to nationalization,…
PSX INDEX TAKES BRIEF RESPITE AS POLITICAL ANARCHY LIKELY TO SHUN INVESTORS Political uncertainty negatively impacted Pakistan’s equities market. The benchmark index of Pakistan Stock Exchange (PSX) touched a low of 43,043 points, but finally managed to close the week at 44,337, posting a decline of 1.96% WoW. Major news flows affecting the market during the week ended 14th July 2017 included: 1) KEL unveiling its US$1.00 billion investment plan to set up a new 900MW power plant, 2) cement dispatches during FY17 rising by 3.71%YoY to 40.315 million tons, 3) workers’ remittances posting a decline of 3.08%YoY were reported…
[dropcap]C[/dropcap]oke has an enviable history in Pakistan spread over decades. Over the years it has added new products to its portfolio to cater the needs of local Coke lovers. Over the years, it has changed its business model for ensuring prompt delivery of the superior quality standards. Coca-Cola entered Pakistan market in 1953. The first plant was set up in Karachi. For several years, the bottling operations were conducted by independent franchisees. Then in 1996, Coca-Cola Beverages Pakistan Limited (CCBPL) was established to acquire all the bottling plants and operate these. CCBPL is a part of Coca-Cola İçecek (CCI), which…
[dropcap]W[/dropcap]ithout mincing words, it may be said that the franchising business is still a nascent phenomenon in Pakistan. Some of the critics may not agree with the assertion as they mix it with other practices, i.e. authorized bottlers, fast food chains and manufacturing under license. This should also not be surprising because brand awareness and brand loyalty are also scanty. Often the use of products of certain brands is considered a status symbol. The users just cannot differentiate the products, if offered without the name or wrapper. Let us begin with the use of branded products, use of unpacked/un-branded milk…
FOREX RESERVES FALL AND RUPEE’S DEPRECIATION LIKELY TO MAKE INVESTORS JITTERY The benchmark index of Pakistan Stock Exchange (PSE) posted a decline of 2.88% WoW, shed 1,343 points and close the week ended 7th June at 45,222 points. Average daily traded volume dropped by 36% WoW to around 166 million. The volume leaders were: TRG, EPCL, BOP, KEL and ASL. The news affecting the market included: 1) GoP slashing retail fuel prices, 2) PACRA maintaining Bank Al Habib’s long-term and short-term entity ratings, 3) commencement of trading in Ittefaq Steel shares, 4) fertilizer manufacturers resuming sales of urea after the…
[dropcap]I[/dropcap]n the simplest words, the budget of a country expresses developmental plans for a year and measures to finance these plans. The FY18 budget is the last budget of the third term of Mian Muhammad Nawaz Sharif as the Prime Minister of Pakistan. He aspires that his political party, Pakistan Muslim League (N) wins the next election to get a chance to rule Pakistan for another 5-year term. While there seems to be nothing wrong with the wish, a lot depends on the outcome of the Panama Papers case and election manifesto presented by the opposition parties. Let us first…
[dropcap]I[/dropcap]f one reviews Pakistan’s economy, the development seems lopsided. The successive governments have experimented with different models from private sector leading the economy to nationalization of the strategic industries to liberalization, deregulation and privatization. The GDP growth rate has varied significantly. It may be said that policy planners have failed in coming up with ‘home grown plan’. This failure can be attributed to persistent dependency on multilateral financial institutions and worst of all remaining under the clutches of the International Monetary Fund (IMF). While the critics blame the IMF, they also fail to realize that nothing comes free in this…
POLITICAL ANARCHY LIKELY TO HIT INVESTORS’ CONFIDENCE The week ended on 22nd June 2017 remained highly volatile due to political uncertantity eminating from Panama Papers case hearing. The benchmark index of Pakistan Stock Exchange (PSX) touched a low of 44,914 on Tuesday, but finally managed to close the week at 46,332, posting a nominal decline of 1.1%WoW. The news flows impacting the market included: 1) net foreign direct investment exceeding US$2 billion during the 11MFY17, China emerging the top investor with US$878 million, 2) textile and clothing exports declined to US$11.23 billion during first eleven months of the current financial…
[dropcap]M[/dropcap]ost of the people working within the corporate sector in Pakistan are aware of the term CSR that stands for Corporate Social Responsibility. However, they have different connotations, perform it as a commitment to the society where they live and do business. The others may consider it an obligation imposed by the government. Therefore, the acts/actions differ, the first group takes pride in undertaking various initiatives and associate their company name/brand with the services they deliver for the society. They turn CSR into an opportunity for CSV – creating shared value. They create a mindset that generates value for society,…
[dropcap]E[/dropcap]very civilized society takes care of education, healthcare, transportation and infrastructure development. To meet the expenses it collects taxes from those who have money. Pakistan can’t be an exception. Being a Muslim majority country, it also collects money under two other heads i.e. Zakat and Usher. While some record of tax payers and amounts collected and spent is available, details about funds collected under Zakat and Usher are scanty. Even lesser details are available about how the funds collected under these two heads are being spent. During Ziaul Haq regime, the law was passed about mandatory Zakat deduction (once every…
SUSTAINABLE RECOVERY UNLIKELY AMID LACK OF TRIGGERS, VOLATILITY Pakistan Stock Exchange (PSE) witnessed volatility throughout the week ended 16th June 2017. Its benchmark index posted a decline of 5.4%WoW, wiping out gains made a week ago. Daily trading volume rose by 6.73%WoW to 255.5 million shares. The most remarkable news of the week was passing of FY18 budget by the National Assembly in the absence of opposition, which decided to walk out. The key news of the week impacting the stock marker were: 1) PSX completed the book-building process related to its 20% stake in an overextended 5‐day period at…
The Three Centres of Excellence in IBA, in alliance with top Malaysian institutes, provide research, training and development in Islamic Finance [dropcap]T[/dropcap]he Islamic banking era that started with the commencement of operations by a full-service Islamic bank, Meezan Bank Limited in Pakistan has posted robust growth during the first decade. However, subsequently its growth pace slowed down due to a number of impediments, worst being banks suffering from excessive liquidity. This issue emerged mainly because Islamic banks are not allowed to invest in government securities. Bulk of the investment of conventional banks is in interest bearing Treasury Bills and Pakistan…
Saadiq is our success, will keep expanding our services legacy through new and digital capability Interview with Mr. Shehzad Khokar – Head, Islamic and Personal Banking, Retail Banking PAGE: PLEASE TELL US ABOUT YOURSELF. SHEHZAD KHOKAR: I have been with Standard Chartered Bank since 2007 in several roles including Islamic Retail Products, Islamic SME Banking, Marketing, Consumer Banking Strategy & Service Quality. I have been in Islamic Banking for the last 7 years and have managed Islamic deposits, cards, secured financing and SME banking. I have been heading the Islamic retail business since 2015. Prior to joining Standard Chartered I…