...crisis of 2007–2008, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. Many causes for the financial crisis have been suggested, with varying weight assigned by experts. The U.S. Senate's Levin–Coburn Report asserted that the crisis happened because of: 1-High risk 2 Complex financial products 3-Undisclosed conflicts of interest 4-The failure of regulators 5-The credit rating agencies 6-The market itself to rein in the excesses of Wall Street 7-Weak and fraudulent underwriting practices 8-Deregulation 9-Predatory lending 10-Increased debt burden or over-leveraging 11-Boom and collapse of the shadow banking system 12-Commodities boom Financial crisis in Pakistan and Reasons 1-One of the immediate causes is Political instability due to Musharaf’s position as president, delay in restoring judiciary and resultantly withdrawal of PML (N) from the alliance leaving behind ‘dead’ ministry of finance. In contrast the present government is not showing strong will to cope with the situation. Though some Positive Measures. To end Load Shedding till 14th August, 2009, Benazir income Scheme programmed, Distribution of Land in Sindh, tight Tariff System against luxury items 2-Suicide attacks in the industrial cities-fear among people, disinvestment and maximum outflow of capital, especially in Dubai stock exchange crash. 3-Foreign...
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...Impact of Global financial crisis On Pakistan By: Nauman Ayubi Butt Roll # 8511 Table of contents 1) Reason of choosing this topic 2) Introduction 3) The term ‘Financial Crises’ 4) Financial Crisis 2007-2009 5) Causes of the crisis 6) The crisis getting global 7) The Financial crisis and Pakistan: 8) Sectoral impact of the crisis in Pakistan: 9) External sector impact i) Exports ii) Imports 10) Financial Sector impact on i) Foreign exchange ii) Banking sector iii) Circular debt iv) Stock market: 11) Inflation 12) Economic business sector impact i) Impact on textile industry 13) Social Sector Impacts 14) Poverty and unemployment: 15) IMF 16) Technique to tackle the situation Reason for choosing this topic: The reason for choosing this topic is that it has a direct relationship with the poverty, unemployment, literacy, wealth distribution and also with the increased level of terrorism in Pakistan. Introduction: Capitalism is an economic system in which land labor production pricing and distribution are all determined by the market. There is a strong history of capitalism that it can shift from extended period of rapid growth to very short periods of contraction The global financial crisis in 2008-09 which are still on the go, they actually started from the 20th century and they have been increasing since then. In the end of 20th century the U.S housing prices after a multiyear started declining, the mortgage prices had been at...
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...Banking sector plays a vital role in the economic growth. Sound financial well-being of a bank is the assurance not only to its investors, but is equally important for the owners, personnel and the whole economy as well. As a result efforts have been made from time to time, to gauge the financial position of every bank and oversee it proficiently and viably. In this paper, an effort has been made to assess the financial performance of the ten commercial banks working in Pakistan and the data has been taken for seven years i.e. 2007-2013. Moreover, data were also assembled from articles, papers, the World Wide Web (Internet), Specialized International Journals, and relevant previous studies. In the present study an endeavor was made to evaluate the performance & financial accuracy of commercial banks using CAMEL approach. CAMEL is the supervisory and administrative framework implemented by State Bank of Pakistan. It consists of five...
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...Pakistan’s Banking Sector Current Situation and Critical Issues ISHRAT HUSAIN Pakistan’s banking sector reforms which were initiated in the early 1990s have transformed the sector into an efficient, sound and strong banking system. The most recent comprehensive assessment carried out jointly by the World Bank and the IMF in 2004 came to the following conclusion: “ for reaching reforms have resulted in a more efficient and competitive financial system In particular, the predominantly state-owned banking system has been transformed into one that is predominantly under the control of the private sector. The legislative framework and the State Bank of Pakistan’s supervisory capacity have been improved substantially. As a result, the financial sector is sounder and exhibits an increased resilience to shocks.” The major changes that have occurred in the banking sector during the last decade or so can be summarized as follows: a) 80 percent of the banking assets are held by the private sector banks and the privatization of nationalized commercial banks has brought about a culture of professionalism and service orientation in place of bureaucracy and apathy. b) The banks that were losing money due to inefficiencies, waste and limited product range have become highly profitable business. These profits are, however, being used to strengthen the capital base of the banks rather than paying out to the shareholders. The minimum capital requirements...
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...Corporate Strategy Tameer Bank ‐ Micro Finance Banking Arsalan Aziz 2011 Instructor: Mr. Shahid Zaki EMBA PS‐IV (INSTITUTE OF BUSINESS ADMINISTRATION) Contents INDUSTRY BACKGROUND ................................................................................................................................... 4 TAMEER BANK .................................................................................................................................................... 5 Vision .............................................................................................................................................................. 5 Mission ........................................................................................................................................................... 5 Products ......................................................................................................................................................... 5 Tameer’s Tripple Bottom Line goals .......................................................................................................... 5 Projects in Progress for 3BL goals in 2008‐2010 ........................................................................................ 5 GENERAL ENVIRONMENT .................................................................................................................................. 7 . Technological Change .............................
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...Corporate governance may be the ways of bringing the interests of investors and managers into line and ensuring that firms are run for the benefit of investors. Given the state of the economy of Pakistan in 2010, troubled as it is; ideally it would be more desirable to look at the governance issues at macro level for Pakistan. As a famous economist, Dr Shahid Javaid Burki- a long observer of Pakistan’s economy has recently stated “Pakistan can generate a greater bounce in its economy than India by creating better governance. It has occurred before in the country’s difficult economic history and could happen again.” (Improved Governance: Dawn, 12th, October 2010). However, as a starting point , in this paper we look at closely the governanceissues for the banking, a sector which has played a significant role till recent years in economic activity of Pakistan. Rehman et al (2010) have looked at the issue of corporate governance in Chemical and Pharmaceutical sectors of Pakistan and found that there is a significant impact of corporate governance on the shareholder’s returns in pharmaceutical sector of Pakistan. Corporate governance has become...
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...The Relationship between corporate governance and firm’s performance of Pakistan’s banking sector Ahmed Waleed M.Phill Scholar (Business Administration) National College Business Administration & Economics, Multan 1. Introduction We study the relationship between the corporate governance practices and the firm’s performance of the banking sector of the Pakistan. During the last 20 years, corporate governance issue have become essential in policy debates. Corporate governance is the framework of regulation, relationships and processes within and by which authority control the organization. A definition would be to define corporate governance. The definition which is used by Sir Adrian Cadbury, head of the Committee on the Financial Aspects...
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...Statement by the International Monetary Fund Delivered by Mohsin S. Khan Director, Middle East and Central Asia Department At the Pakistan Development Forum Islamabad, March 17-19, 2004 I. Introduction 1. The 2004 Pakistan Development Forum (PDF) provides a timely opportunity to discuss Pakistan's recently finalized Poverty Reduction Strategy Paper (PRSP) "Accelerating Economic Growth and Reducing Poverty: The Road Ahead." Last week the IMF Executive Board endorsed Pakistan's PRSP as a comprehensive and feasible poverty reduction strategy, and a good framework for further reform after the expiration of the Fund program. The Fund staff appreciates this opportunity to comment on Pakistan's economic developments and outlook. 2. The Pakistani economic reform program has been supported by the IMF with a three-year arrangement under the Poverty Reduction and Growth Facility (PRGF). This program was approved by the IMF Executive Board in December 2001 and it will be completed in December 2004. Since its approval, seven program reviews have been completed successfully and discussions for the eighth review are scheduled for April. 3. In light of the considerable improvement in economic fundamentals during recent years, the authorities have indicated to us that they will not request a successor arrangement to the current PRGF. This will be a very important milestone for Pakistan following a long history of financial assistancel from the IMF. The authorities should be commended for...
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...1977, this program was again put forward in 1996 by Benazir Bhutto. Despite its success in the initial years, these programs left disastrous effects on Pakistan’s national economy. Impact on Wheat Industry In the third phase of nationalization (year 1976), around 2,000 cotton, ginning, and rice husking units came under the program. This caused huge chaos among the workers of the country, especially the farmers as the agricultural hub was being affected by the policy. The program eliminated the crucial role of middlemen. The first and second phase had already created resentment among investors and trading agents across the country. There were various implications that nationalization gave to Pakistan: hyper inflation, drastic fall in production & GDP growth which consequently led to low savings & tax collections, resulting in unemployment, loss of confidence in the investor sentiment, public sector overweighed, sick industries, fall in production and most importantly increase in corruption. Government socialist policies against the business elite was believed to be a measure to narrow the gap between the rich and poor .But rather turned out to be an dictatorial move to save government own skin from a rising industrial class focused on educating the masses and developing their skills. Nationalization brought Pakistan's economy to its knees and sank the Pakistani public deeper into poverty. Impact on Steel Industry In the first round of...
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...industrial towels (with and without logo, tile motifs, check variants, micro checks, graduated checks and linear embroidery), herringbone, mono checks, dishcloths, shower curtains, hospital bed sheets, thermal blankets, bedspreads, draw sheets, upholstery, handkerchiefs, aprons, place mats, pot holders, gloves, and beach throws. These are manufactured using dobby looms, jacquard looms, and shuttle looms, which allow for state of the art floral motifs, subtle shadows, and colour gradients. KARACHI: The textile sector enjoys a pivotal position in the exports of Pakistan. The contribution of this industry to total gross domestic product (GDP) is 8.5%. It provides employment to about 15 million people, 30% of the country’s workforce of about 49 million. The annual volume of total world textile trade is $18 trillion which is growing at 2.5%. But Pakistan’s share is less than one per cent. The past few years, however, have probably been the worst ever for the textile sector in Pakistan. Some of it is obviously not their fault, but some of it is. For example the power crisis, the security situation and the lack of access to global markets has certainly had an effect on the ability of the industry to compete. However, a lot of it is definitely the fault of the textile industry...
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...Sunny side up: Country has changed, future looks really bright, says Mansha KARACHI : It is no secret that a group within the Memon community of Karachi harbours a grudge against the Manshas of Lahore. After all, many of the businesses that the former built — and then lost to the disastrous policy of nationalisation in the 1970s — were eventually acquired and turned around by Mian Muhammad Mansha, Chairman of the Nishat group, one of Pakistan’s largest business houses, with interests in textiles, cement, banking, energy, insurance, aviation and agriculture. Attribute it to his relentless hard work spanning over half a century or call it a result of the privatisation policy that ultimately proved favourable to his group of companies, the fact remains that Mian Mansha is undoubtedly the face of corporate Pakistan today — an icon of the rising private sector of the country whose counsel government officials feel obliged, and perhaps even privileged, to seek. Thus, it was least surprising to see nearly all big shots of the country’s financial services industry stand in awe as Mian Mansha walked into the ballroom of a Karachi hotel on Friday evening to speak about the offer for sale of shares in a Nishat group subsidiary, Lalpir Power Limited. However, commensurate with the stature that he has attained in the last two decades, Mian Mansha chose to speak about larger issues confronting the economy of Pakistan. “This country has changed forever. We’re going to have reverse...
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...ABSTRACT Pakistan’s growth experience over the past sixty years is both impressive and disappointing. It is impressive because rapid growth rate has resulted in a quadrupling of per capita incomes and reduction in poverty levels by one half despite fairly high population growth. Structural changes have transformed a predominantly agrarian economy to a more diversified production structure. But there is a sense of disappointment too. Social indicators are among the worst in developing countries. The economy of Pakistan is the 27th largest in the world in terms of purchasing power parity (PPP), and 44th largest in terms of nominal GDP. 1950's & 1960's * GDP of agriculture declined, of industry doubled, of construction increased, electricity / gas and that of the services sector also increased. * more jobs were provided like transport, communication, construction and services * Industrial growth was 23% per annum in the first plan period (1955-60) * 1% percent during the second plan period (1960-65) * The food grain shortage in early 1950s because of the poor performance of the agriculture sector, forced Pakistan to borrow long term credits for imports of food grain. * Agriculture sector grew from 1.0% in the first plan period to 3.7% during the period 1960-65. * The era of war 1965 was featured by marked decrease in foreign loans inflow, slow down the industrial growth, and increase in defense expenditures and re-imposition of certain controls...
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...summary of various investment opportunities in identified sectors which could be of interest for investors. This guide provides a summary of the rules, regulations and tax laws applicable in Pakistan. Although covering many relevant areas, it should not be considered as exhaustive since it has not been designed to provide complex and detailed information required for decision-making in relation to investments. This publication incorporates the regulations effective as of 31 August 2013. For our latest publications please browse our web site; www.kpmg.com.pk. © 2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Glossary BOI CY FCY FDI FY GDP GoP KSE PKR SBP SECP USD Board of Investment Calendar year Foreign Currency Foreign Direct Investment Fiscal year ended 30 June Gross Domestic Product Government of Pakistan Karachi Stock Exchange Pakistan Rupee State Bank of Pakistan Securities & Exchange Commission of Pakistan United States Dollar © 2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Contents Overview of the Economy Sector Outlook Regulatory Framework for Investors in Pakistan...
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...ADAMJEE INSURANCE Analysis of Insurance Sector Research Report Table of Contents Introduction .................................................................................................................................................. 3 Insurance sector at a glance ......................................................................................................................... 4 Major Players in the Market ..................................................................................................................... 6 Global Insurance Industry Overview ............................................................................................................. 7 Non-life growth is still weak in the industrialized countries, but strong in Asia ...................................... 8 Non-life insurance premium growth ........................................................................................................ 8 SWOT Analysis of Pakistan Insurance Industry ............................................................................................ 9 Analysis of Leading Insurance Companies in Pakistan (of first quarter 2011) ............................................ 10 Drivers of Insurance Coverage .................................................................................................................... 11 Competition between insurance and banking ...................................................................................
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... CEMENT The Pakistan Credit Rating Agency Limited CEMENT – AN OVERVIEW SECTOR STUDY STUDY CONTENTS Summary Sector Study: Global Cement Industry Pakistan Industry Business Risk Financial Risk Outlook PAGE 1 2 2 4 6 7 February 2014 www.pacra.com SECTOR STUDY The Pakistan Credit Rating Agency Limited CEMENT – AN OVERVIEW (FEBRUARY 2014) SECTOR DYNAMICS Business Risk Outlook Medium Stable to Positive OVERVIEW Pakistan’s cement industry has an oligopolistic structure – top five players (out of a total of 18) controls above 55% share. Geographically production facilities are concentrated in north (83%) of the country, while south has around 17%. During the last decade, the Pakistani cement industry has expanded its production capacity significantly; while gradually making inroads into the exports markets. The cement production capacity of Pakistan stood 44.8mln tons in FY13. Demand dynamics, playing key role in cement manufacturing, kept capacity utilization at ~75%, a behavior observed in past few years. Currently, Pakistan is ranked among the world's top 10 cement exporting countries. Pakistan Cement - Production and Capacity Utilization 50 45 40 35 Mln Tons HIGHLIGHTS FY13 Total Companies No. of listed Companies Share of listed Companies (based on capacity) Cement Production Capacity Utilization Market Capitalization Revenue* Net Income* Cement Sector Loans Share in Banking Loans Cement NPLs Share in Total NPLs Cement Infection Ratio * Listed companies...
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