There is a growing consensus among the investors that Modaraba sector is ‘over regulated’. This has not only impeded its growth but also deprived the investors from earning Riba-free return on their investment. On top of that the recent financial scam in Khyber Pakhtunkhwa (KPK), where some ruthless people ripped off investors and the act was termed as ‘Modaraba Scam’ by those who cheated people in the name of …

  Since beginning of privatization process, the successive governments have successfully sold out a large number of public sector entities and also divested government holdings but a question often arises, why the government is selling its stake in profit making entities and still holding loss making entities? There will always be buyers for good performing entities, which are also a major source of income for the government. Top of the …

  Pakistan Automotive Manufacturers’ Association (PAMA) has released its monthly sales data for the month of August registering growth of over 76%MoM, in indication of strong recovery from the adverse impact of advance tax. The prime gainer in the month was Corolla with sale of 3,515 units. Despite the strong recovery the numbers remained under pressure on a cumulative basis, posting a decline of 11.3%YoY in 2MFY15. While auto industry …

  One of the conditions for initiating process of ‘Liberalization, Deregulation and Privatization’ in early nineties was creation Regulatory Authorities in the respective sectors. The objective behind initiating this process was to confine role of the government to be the facilitators and pull it out of managing business. Creation of regulatory authorities was also one of the requirements of the multilateral lenders for the protection of all the stakeholders, particularly. …

  Size of Pakistan’s GDP and its growth rate is dismal when compared with the potential. While it is true that smaller size of GDP is due to lack of documentation, the most disappointing fact is that the successive elected governments have opted for policies that could help them in attain ‘political mileage’ rather than introducing policies that could ensure sustained development. These governments have been following policies dictated by …

  The term South Asia commonly refers to seven countries namely: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. These countries are also part of South Asian Association for Regional Cooperation (SAARC), a bloc established in 1985. Afghanistan has been included as 8th member of SAARC in 2006 and China, Iran and Myanmar are also seeking full member status of the bloc. According to various reports SAARC member countries …

  One often hears statement like: 1) Pakistan is over populated, 2) size of its GDP is too small, 3) per capita income is minuscule, 4) a large percentage of population lives below the poverty line, 5) country has been surviving on borrowed money, 6) load shedding of electricity and gas is extensive and 7) despite being an atomic power, its survival is often threatened by whatever is happening in …

  It is often said that the fiscal and monetary policies of the country have been dictated by the multilateral lenders i.e. International Monetary Fund (IMF) and the World Bank. This statement is partly correct and partly wrong. Since the lenders give money they also want to ensure its return as per agreed schedule. Therefore, they have a major say in the formation of these two critically important policies. However, …

  Agriculture contributes nearly one-fourth to Pakistan’s GDP, two of its large-scale industries (textile and sugar) are agro based and nearly 60 percent of total exports comprise of textiles and clothing. This is despite the fact that production and productivity of the sector is very low as compared to the international standards. If right impetus are provided production of major crops can be doubled, which can boost GDP size, create …

  In countries like Pakistan, the governments facing shortage of revenue, indulge in borrowing to meet their developmental expenditures. While the conventional banks have been the key beneficiaries of such borrowing, Islamic financial institutions (IFIs) face serious liquidity management problems as these can’t invest in Riba-based instruments like Treasury Bills and Pakistan Investment Bonds. Issue of Sovereign Ijara Sukuk and corporate Sukuk on one hand offers an opportunity to invest …