FDI requires an enabling environment to ensure flow of funds and capital in different investment ventures. Investments are required in Pakistan for infrastructural development and industrial growth which would create jobs and translate into a higher GDP through enhanced production. The per capita income of Pakistan is only USD 1,254 considered low. The key is to eliminate poverty and increase reserves. With respect to the economic situation of Pakistan, …
Read More »Economic progress of Pakistan since 1947
Pakistan has witnessed progress since independence when it comes to development of infrastructure and industries. Pakistan is recognized as a major textile exporter. Being an agrarian economy, the country is self-sufficient when it comes to food requirement, which is a plus factor. Through progress is seen with setting up of industries, infrastructure, commercial and residential properties, corruption and mis-management has made the progress slow. Political unrest and blame game …
Read More »Monetary Policy: likely impact on inflation and interest rate
In the last Monetary Policy decision, discount rate has been maintained at 10 percent against expectations that interest rate will reduce at the back of reduction in CPI, average CPI recorded at 8.6 percent in FY14. With declining trend of inflation and projections of SBP for single digit inflation, discount rate is expected to reduce further. For FY15, CPI is expected to remain between 7.5 percent and 8.5 percent. …
Read More »Thriving food business in Karachi takes new heights
Pakistan is a land, which is having rugged terrain and mountains in the north, plains and fields in the South. Pakistan is considered an agricultural community, which keeps the country self-sufficient with its food requirement. Since there have hardly been any investments to promote recreational activities such as water parks, amusement parks, Safari’s, water sports, race tracks, gymnastics etc the only source of entertainment for the people is food. …
Read More »Growth in Islamic Finance surpasses conventional banking
Islamic finance based on principals of Shariah provides an alternate to conventional banking. Islamic banking industry size is estimated to be $400 billion with potential to grow at minimum 15 percent to 20 percent globally per year, much faster than conventional financial institutions. This has been the same trend over the last 5 years since 2008. Islamic Banking assets globally are estimated to be $270 billion. The sukuk market …
Read More »Education: the best tool for CSR
When it comes to troubles in Pakistan, probably the root cause of it all is education. Pakistan has a population of 180 million people with a median age of 21.5 years for both male and female. Based on literacy, which is defined as those who have attained the age of 15 and can read and write is estimated at 49.9 percent with male literacy at 70 percent and female …
Read More »Governance around the world: what can Pakistan learn?
The word governance is often tied to corporations and business. Little have we heard about “Global Governance” or “World Governance” which is a new term coined with increase in globalization. Global governance means political interactions between countries aimed for problem solving and act more social. It means that no one country has the responsibility and power over the other for compliance. Global governance becomes even more important with the …
Read More »The CNG dilemma: when and how should it end?
CNG was introduced in Pakistan to counter high price of fuel. As a new business venture, many businessmen opened CNG stations to reduce the cost of transportation. CNG kit import became a wide market and especially popular in the transport industry. Introduced in mid 1990’s no one predicted the issues arising out of CNG supply, which we witness today. As the price of fuel based on international oil prices …
Read More »Pakistan Steel Mills — Past and Present
Pakistan Steel Mills (PSM) is the largest corporate entity owned by the government with production capacity of 5 million tons. Privatization of PSM was initiated under the reign of former prime minister Shaukat Aziz, which was met with controversy. The Supreme Court held the privatization effort as defined process and procedures were not followed. Sale of the country’s largest industrial unit went down the drain whereas the matter was …
Read More »Banking sector review
The banking sector through CY13 faced tough challenges with external factors including law and order situation, political uncertainty, strikes causing closure of bank branches in distressed areas to name a few. The State Bank of Pakistan (SBP) require banks to have minimum capital of Rs10 billion by December 2014, which will be a challenge for banks below the required threshold forcing another round of mergers and acquisitions review. The …
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