While investors have been increasingly fishing for Shariah-compliant investment options, conventional banks and asset management companies, in order to cater to the growing demand for Islamic products, were seen jumping into bandwagon. Ijarah Sukuks are Shariah-compliant medium term investment instruments with 6-monthly (floating) profit payments guaranteed by the Government of Pakistan (GoP). SBP announces profits for Sukuk every 6 months. Facilities of further investment and premature encashment through reselling …
Read More »Future outlook for FDI in Pakistan
Pakistan received foreign direct investment (FDI) of $119.3 million in the first two months of current fiscal year 2015-16, which is 7.5 percent higher than the FDI received in the same period a year ago. The FDI increased to $8.3 million year-on-year (YoY) in July-August, as it amounted to almost $111 million in the corresponding months of last fiscal year 2014-15, according to the State Bank of Pakistan (SBP). …
Read More »China’s huge investment in coal-based power generation projects
The landmark economic package of China is a depiction of the confidence of China and Pakistan and the deep love for a large number of people of Pakistan. The projects are part of a broad bilateral deal called as China-Pakistan Economic Corridor (CPEC) under which the Chinese government and banks will finance Chinese companies to invest $45.6 billion worth of energy and infrastructure projects in Pakistan over the next …
Read More »Repercussion of lower oil prices
The oil industry with its past history of huge profitability is in the downswing. Earnings are at present in a lower position for companies that have made landmark profits in recent years, pushing them to retire more than half their rigs and abruptly cut investments in exploration and production. About 100,000 oil workers have lost their jobs, and manufacturing of drilling and production equipment has fallen drastically. The oil …
Read More »The consumer is a king — A review into Pakistan’s booming retail sector
With the positivity instilled with the current government, most segments of the economy are showing positive signs of growth. When talking to businessmen on market potential, most say that the sector which is the best choice for investments is the retail sector. Pakistan has population of 180 million people, and frankly, the only entertainment is food and shopping. The demand of both food and shopping is counter to the …
Read More »China’s investments in Pakistan’s energy sector — A significant move
Pakistan faces chronic power shortages due to rapid growth in demand for electricity. Power outages increased significantly due to the widening gap between supply and demand over the past three years. It has adversely affected the industrial output and economic growth of the country. The energy statistics of Pakistan shows that around 50 percent of the need is met by the indigenous gas production and 29 percent by domestic …
Read More »Pakistan has become an attractive telecom market for foreign and local firms
Pakistan is rapidly evolving as one of the telecom sector’s key investment prospects. The telecom sector has witnessed a significant year-to-year growth in the country. About 90 percent of Pakistanis live within areas that have cell phone coverage and more than half of the total population has access to a cell phone. The country’s telecom infrastructure is improving dramatically with foreign and domestic investments into fixed-line and mobile networks; …
Read More »Education revolution in Punjab around the corner as every child to be enrolled by 2018
Punjab Govt considers education as a tool to development Record funds allocated for school and higher education While education is a prime factor in economic and social well being of any nation apart from a strategic tool in nation building through skill development, investment education sector is of prime importance. Punjab government has achieved several milestones in student enrolment, availability and functionality of facilities, in teacher quality and student …
Read More »Thriving fertilizer sector
Having gained 15.7%CY15TD as compared to 18.9% return in CY14, the Fertilizer sector has clearly attracted investor attention in 2015. This is partly a function of an encouraging start to the year with cumulative fertilizer offtake of the country improving by 6%YoY to 765,800 tons during January 2015 as opposed to 724,200 tons during January 2014. In this regard, total urea offtake in January 2015 stood at 628,800 tons …
Read More »The vital ways of attracting foreign investment
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 …
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