Finance & Market

  Infrastructure development and logistics is one of the vital ways through which any country can attract foreign investment and help achieve sustainable development for the growth of an economy. Considering the case of Pakistan, the focus on infrastructure while given importance isn’t always the most important aspect to consider since there are other issues the country has to deal with. There are the political sit-ins in the country, which …

  The monetary policy has been misused to a large extent. There was exploitation of the depositors’ money by the rich and powerful class in the absence of an effective central bank. The government enacted laws to give autonomy to the SBP in conducting an independent monetary policy in coordination with, rather than in subordination to fiscal policy, and to make the SBP the exclusive regulatory authority over the banking …

  With the new year having started, the prospects of the banking sector in terms of growth are looking bright. However, the question, which must be looked into is whether or not these banks will be able to help the government during its 5-year term and help the economy in achieving growth by helping the business and industrial sectors in particular. For high rates of growth to be achieved in …

  Advanced economies thrive on a well-managed system of consumer financing, which affords the pleasure of luxurious facilities without owning them. In capitalistic system, this is a win-win situation for both the users and the suppliers of goods and services. The economy benefits as demand is created for goods and services; consumer markets seem bursting at the seam as buyers, backed by the strength of consumer credit, throng to bid …

  There are lots of investment program in our country for big and small investors but no one ever have focused on creating some programs related to income generation for very small income persons or for school going kids. In our society income matters and it is a social security for one’s survival. I personally seriously felt the need of teaching our children about saving and investment ideas and its …

  The economy and foreign exchange reserves of Pakistan like most developing countries across the world rely in part on migration and workers’ remittances. To put things in perspective, the $15.83 billion1 that overseas Pakistani workers (Pakistani Diaspora) sent back home in the country’s fiscal year 2014 from July 01, 2013 to June 30, 2014 contributed to the country’s GDP. An IMF research paper stated that workers’ remittances contributed 4% …

  Over the years increase in remittances received in Pakistan has become a talking point. The successive governments take credit of this increase but when compared with other countries, Pakistan’s share look miniscule. While it is true that Pakistani’s are hard working, the negative image of the country often becomes the biggest hurdle. Added to this is the role being played by agents operating in Pakistan, taking the people on …

  ‘The development of skilled human resource base is critical for sustainable growth of Islamic finance industry in Pakistan,’ said the Federal Minister for Finance Senator Muhammad Ishaq Dar. He made these observations while speaking as the chief guest at the launching ceremony of the third Challenge Round of Financial Innovation Challenge Fund (FICF) on ‘Promoting Excellence in Islamic Finance’ program, which is being funded by UK Aid and implemented …

  Hawala is probably the most convenient way of transferring funds from one party to the other i.e. from within Pakistan to abroad or vice versa without intervention of SBP or the financial sector. Hence, the transaction from initiation to execution is untraceable. Hawala is used for genuine need as well as terrorism. When it comes to genuine need, it may arise through a customer or even a company. Hawala …

  The economics of public debt is intriguing as well as fascinating! In interest-based capitalistic system, one cannot underestimate the value of debt. The system is designed such that economic progress and growth are made subject to ever-increasing prices of goods and services. The phenomenon of increasing prices is sustained by a corresponding increase in money stock through additional printing of currency. The additionally printed currency, going into an economy’s …