Finance & Market

  While the credit penetration stands at 1/5th of the gross domestic product of the country, the future of the banking sector does not seem to be a very positive one based on raw numbers. With the economy of Pakistan already being burdened by the numerous protests against the existing government and the recurring floods, while an in-depth look into data pertaining to the banking sector, however, reveals a different …

  After the un-ceremonial demise of DFIs and Investment banks, commercial banks have been undertaking many activities, which are not part of their prime mandate. They also undertake medium and long term financing that is not the role of commercial banks. However, to make it look more prudent some of the commercial banks have established fully-owned subsidiaries to undertake ‘other business’ that include insurance, asset management, leasing and Modarabas. This …

  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 …

  Karachi Stock Exchange was declared by The Economist as the best market. Brazil and Philippines were beaten by the small Karachi Stock Exchange (KSE), which rose by 40 percent in local currency terms. Of stock markets hunted by The Economist, only Japan’s has performed better. Leaving terrorist explosions the exchange’s strong performance was partly due to improving conditions in Pakistan, including a reasonably free and fair election in May, …

  Unrealistic revenue targets weigh on trade and industry growth It rightly said that the budget is the most powerful fiscal instruments at the disposal of the government to implement political commitment and development agenda made public during electioneering campaigns; however the story takes a turn when a political party voted to power. Almost every democratically elected government made promises rather tall claims to take care of Public Sector Development …

  Knowledge, attitude and practices of Islamic banking “Knowledge, Attitude and Practices of Islamic Banking in Pakistan” was the theme of a research survey conducted by the State Bank of Pakistan (SBP) which in fact was the driving force behind the eye catching growth of the banking sector. According to the survey there is an overwhelming demand for Islamic banking in the country that is evenly distributed amongst rural and …

  Consumer financing has emerged out as one of most prolific aspects of banking in Pakistan as its products including credit cards, personal loans, auto loans and housing mortgage getting prominence and likely demand. It not only contributes towards facilitating the life patterns of consumers, but proves to be a source of improvement for the image building of the banks. Banking sector dealing in consumer finance products has witnessed an …

  Pakistan has favorable environment for the growth and expansion of microfinance sector: EIU Over 2 million beneficiaries including non muslims are taking the productive use of Islamic microfinance worldwide Islamic banking industry has been showing a spectacular annual growth rate of over 30 percent over the past five years with sustained growth momentum despite substantial increased base. Islamic Banking has been expanded across 80 districts of the country with …

  In today’s times, small and medium enterprises (SMEs) are seen to be a universal solution to a majority of the problems being faced by the less-developed countries. Unemployment, lack of economic growth, and poverty are some of the problems, which are expected to be solved under this small scale sector. The faith in SME is constantly on the rise as the concept of manufacturing occurring anywhere is on the …

  The expansion of SME sector is crucial to an economic revolution in Pakistan: experts Developing and developed countries have recognized the importance of Small Medium Enterprises (SMEs) which play an important role in the development of national economy. In Indonesia, United Kingdom, South Korea, Thailand, China, USA, Bangladesh etc, SMEs have historically been the main players in the domestic economic activities especially as providers of employment opportunities. SMEs are …