The banking sector through CY12 to date has 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. According to the Financial Stability review released by SBP for second half of 2011, 12 banks in Pakistan failed to meet the MCR of PKR 8 billion by December 31, 2011. The minimum capital adequacy …
Read More »Performance of corporate sector 2012
Pakistan faces new challenges and opportunities every day. Reduced availability of financing for capital investment, unsafe working environment, law and order situation, continuous devaluation of rupee against other currencies, lack of gas and electricity and constant pressure for reviving the economy are just a few. Corporate sector vulnerabilities and poor governance in general are frequently being identified as important contributors to the Pakistan’s current financial crisis. Despite all this, …
Read More »Glowing role of telecommunication sector in growth of Pakistan
Pakistan has been faced with a number of problems which include prolonged energy crisis, instability on the political front, a volatile security situation as well as questionable governance, all of which have caused hurdles for the country in being able to attract foreign investors. Despite these issues, however, the telecommunication sector seems to be doing well and is considered to be a rather lucrative business. Firms seems to be …
Read More »Banking sector performance: trend, outlook and challenges
A strong trend in the growth and profitability of banking sector is judged by the stability in the monetary policy, increasing spreads, decrease in nonperforming loans (NPLs) and the selling of stakes by the government in banks to public. The experts see a good trend in banking performance in Pakistan. The country’s banking sector has four categories including large banks with total assets in excess of Rs500 billion; medium …
Read More »The banking sector of Pakistan and its impact on the economy
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 …
Read More »Why to sell family silver?
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 …
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 …
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 …
Read More »Deployment of technology in financial sector
In Pakistan banks were the first to deploy technology as they had funds and also wanted to enhance their footprint. On top of that it was growing pressure of the corporate sector to make banking more efficient. Banks went for mainframe computers and soon also started processing bills of utility companies. After a while utilities installed their own systems. However, the real revolution came with the advent of personal …
Read More »Contribution of the agricultural sector towards the economic growth of Pakistan
For Pakistan, the agricultural sector has always held great significance. The country has always had a great deal of potential in terms of the agricultural sector and at the time of independence as well, it was considered to be a country whose economy centered on this particular sector. As industrialization occurred in Pakistan and the birth of industries began, the economy of the country began to diversify. Despite this …
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