...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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...12 Introduction to Micro And Macro Economics | Major Issues in Pakistan Economy: A Statistical Overview | | | | | Table of Contents Page Historical Background of Pakistan...............................................................................3 An Overview of Current Situation in Pakistan.............................................................5 Major Issues in Pakistan: .............................................................................................7 Illiteracy.............................................................................................................7 Poverty..............................................................................................................12 Corruption.........................................................................................................15 Overpopulation and Population Health.............................................................18 Unemployment..................................................................................................22 Inflation.............................................................................................................26 Energy crisis......................................................................................................30 Political instability............................................................................................33 Conclusion and Recommendations............
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...1 – Pakistan 4/9/2014 Pakistan is a sovereign country of South Asia, and the sixth most populous country in the world. It was ruled by the British Indian Empire until August 14, 1947, when the empire split into two separate sovereign states- Pakistan and India. It now borders the Arabian Sea, India on the east, Iran and Afghanistan on the West, and China in the north (Nations Online, 2014). After formation of the New Republic, tensions between East and West Pakistan still existed, which caused a civil war, and ended in separation and creation of the state of Bangladesh. Formal relations between Pakistan and India were re-established. They were shaken again in the late 90s, when India tested nuclear weapons and Pakistan followed a few weeks later. That led to the Kargil War of 1999 (Nations Online, 2014). Under the pressure of the United States, Pakistan broke its close ties with Afghanistan, and became a US ally after the Sep. 11 attacks. President Bush, therefore, ended sanctions that were instituted after the nuclear tests in 1998, and rescheduled Pakistan`s debt (Nations Online, 2014). In 2003, Pakistan and India ended their fight in Kashmir, and allowed people to reunite between the two capitals of Kashmir - one on the Pakistan`s side, the other one on the Indian side. After 60 years, in 2007, trade route finally opened across the line of control (Nations Online, 2014). With increased violence in Afghanistan in 2010, President Obama pressured current Pakistan`s President...
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...India Introduction India is located in southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan. It is the world's seventh largest country and second only to China in terms of population. India has long been a country plagued with poverty, but is now building itself and its economy. It is accomplishing this with new entries into the world market and a different outlook on economics. The future of India is uncertain for the moment, but the opportunity for growth and prosperity is most assuredly present. It will take time for India to emerge as a nation free from its problems, but is plausible with international trade. India’s Culture and Its Economic Implications India is certainly a country that is rich in history and culture. India acquired its independence from Britain on August 15th in 1947. Unlike the American and French revolutions, the Indian revolution was one of peace and temperament. The diversity that now exists within the borders of India is evident in the colorful mix of languages, ethnicity, and religious beliefs. As a throwback to the era of British rule, English is most important language for national, political, and commercial communication. However, Hindi is the national language and primary tongue of 30% of people. There is also a blend of several other languages that are spoken throughout India such as Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi,...
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...towards a more broad-based approach. Multinationals have to consider a completely new array of factors which range across the home country, the foreign country and even the distance in between. In today’s world of interconnectedness, FDI has been facilitated through the use of modern technology and the transferability of technology across boundaries. The global trading environment allows for investment flows across countries. While countries may be wary of imports, FDI is always welcomed as it leads to job creation within an economy and a boost to GDP. The FDI decision would itself be one needing intense planning, strategizing and thorough analysis. The factors which determine investment decisions by large firms vary across countries and it is up to the firms to determine whether the costs incurred by the variances among these parameters would be worth the price of admission. The cost benefit analysis has to be thorough given that the company is exploring new markets which could be considered a whole new world within the context of the company. Stepping out of the bounds of its own industrial and economical context and towards a global context or towards the industrial and economical context of a different country altogether is a decision in need of clear and thorough analytical thought. The decision has to encompass so many levels. There aren’t just physical or monetary barriers to entry in a new market but mental ones as well which are more prevalent in the determination of a firm’s...
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...countries as members, they are India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives and Afghanistan. Secretariat was located at Kathmandu. Main Objectives of SAARC Charter: To improve quality of life and promote welfare of the peoples of South Asia. - To accelerate economic growth, social and cultural development in the region. - To promote self-reliance among the countries of South Asian Region. - To generate mutual trust and understanding of each others problems. - To strengthen cooperation with other developing countries. - To cooperate on matters of common interest in international fora. - To strengthen cooperation with regional and global organisations. Population and Economic Potential: 1.4 billion people, one-fifth of the World’s population. Home to one-fifth of the World’s consumers with an average yearly income of $ 450. The SAARC region with a total market size of one and quarter billion people offers enormous potential for Intra-regional trade and cross-border investment. Intra-SAARC trade is less than 5 per cent. The SAARC region is among the poorest regions of the world. The region has 44 per cent of the World’s poor. According to a World Bank report, more than 500 million people in South Asian region live below poverty line. The South Asian region has more than 50 per cent of the total world population of child workers. Analysts argue that in today’s world of compulsive global integration of national economies. The SAARC countries continue to...
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...Technical methods that affect the industry Mobile networks are one of the most technical aspects of any mobile company and the technological changes affecting the networks have changed considerably, since the first mobile company Paktel was introduced in Pakistan. Paktel s network ran on advanced mobile phone system (AMPS). Amps WAS THE ANALOG MOBILE PHONE STANDARD DEVELOPMENT BY bell Labs. AMPS were a first generation cellular technology that used separate frequencies or channels , for each conversation. AMPS used considerably more computing power in order to select frequencies; however cell centers could flexible assign channels to handsets based on signal strength, allowing the same frequency to be reused in various locations without interference. However it suffered from some weaknesses when compared to today s digital technologies. Since it is an analog standard it was very susceptible to static and noise and had no protection from caves dropping used scanner. However with the introduction of mobilink in 1992, Pakistan s mobile industry entered into the second generation of mobile networks with GSM. GSM is the most popular standard for mobile phones me the world. Its promoter, the GSM Association, estimates that 82% of the global mobile markets use the standard. Its ubiquity makes international roaming very common between mobile phone operators, enabling subscribers to use their phones in many parts of the world. GSM differs from its predecessors in that both signaling and speech...
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...across Europe and Asia and in additionally 19 markets through its 31.67 per cent ownership in VimpelCom Ltd. Telenor Group is among the largest mobile operators in the world with over 140 million mobile subscriptions (Q4 2011) and a workforce of 30,000. Telenor started out as a public company in 1855 and builds on more than 155 years of telecom experience. A Telenor is a global company it is always looking to expand in to untapped markets or where oppuruntities are available for expansion. Telenor acquired a license for providing GSM services in Pakistan in April 2004, and launched its services commercially in Karachi, Islamabad, and Rawalpindi on 15 March 2005; it expanded its services to Lahore, Faisalabad and Hyderabad on 23 March 2005. Telenor Pakistan’s Corporate Headquarters are in Karachi, with regional offices in Peshawar, Lahore, Faisalabad, Multan, Hyderabad and Islamabad. On 28 January 2005, Telenor established its first call centre in Karachi. TELENOR TOOK ADVANTAGE OF GRADUATES IN KARACHI BY OPENING ITS CALL CENTRE IN A CITY WITH HIGH LEVEL OF GRADUATES. As of January 2012, Telenor Pakistan had a reported subscriber base of 28.47 million, and a SIM market share of 24%. On October 2012, Telenor officially declared to have the customer base of 30 million. Competitors Its main competitors are Warid (UAE), Mobilink (Egypt), Zong (China), Ufone (PTCL/UAE). All these companies are foreign investments; excluding Ufone which is part owned by PTCL. Telenor’s advantage...
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...and glass manufacturing industry and produces engineered glass materials and technologies that are operated in highway safety, polymer additive, metal finishing and conductive particle markets (Exhibit 1 - 4). Potters Industries worldwide manufacturing and distribution network supplies its customers from 25 production points, 12 in the US, 2 of each in the United Kingdom, Australia, France, Japan and one each in Mexico, Brazil, Germany, Poland and Thailand. After conducting our research and analysis, we recommend that Potters Industries LLC expand its product lines into the South American country of Chile. Chile provided more arbitrage opportunities when compared with both Pakistan and Bulgaria. These opportunities will allow Potters to increase their exposure in the global market while increasing economies of scale. The small distances between the CAGE frameworks allow a smooth transition for Potters to create a regional base in Chile. Chile is an attractive market to take advantage in terms of economic growth, the government’s initiatives in moving to environmental sustainability and highway safety (Exhibit 5). Potters should take advantage of these opportunities by establishing presence in Chile through building a new operating plant in order to manufacture the good within the home market. Support Potters Industries has successfully expanded into an innovative leader in the glass bead manufacturing industry through its market entry globalization strategy and focus differentiation...
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...AMB Country Risk Report September 28, 2011 Pakistan Country Risk Tier CRT-5 • The Country Risk Tier (CRT) reflects A.M. Best’s assessment of three categories of risk: Economic, Political and Financial System Risk. • Pakistan, a CRT-5 country, is itself the site of military and terrorist activity. Its fundamental lack of political stability is a challenge to its economic and financial outlook. Economic Risk Moderate Low High • Regional instability and domestic bureaucratic inadequacies challenge this economy that, though recently liberalized by the government, supports a relatively low-income population. • In addition to the need to eliminate terrorist violence in Pakistan, the government must continue to work to strengthen the legal system and transparency in government to increase growth in Pakistan’s economy and industry. Very Low Very High Political Risk Moderate Low High Very Low Very High Financial System Risk Moderate Low High Very Low Very High For information on companies followed Market Outlooks Copyright © 2011 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise. 1 AMB Country Risk Report Pakistan Regional Summary: South Central Asia • The region of South Central Asia, comprising the countries south of the Himalayans, is...
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...EMERGING ECONOMIC AND POLITICAL CONFLICTS AS THREAT TO PROSPERITY Biyash Chakraborty MBA- International Business Email: chakraborty.biyash93@gmail.com University of Petroleum and Energy Studies, Dehradun. (Uttarakhand), INDIA __________________________________________________________________________ Abstract India’s rapid economic growth has made it the second fastest growing energy market in the world. Its domestic and international strategies has produced foreign policy differences with the United States that will require careful management on both sides. India’s basic approach to energy diplomacy has been to develop its supply potential and neutralize its potential competitors, principally China. India’s strategic interest in Iran as its energy partner and then the Iraq crisis are having a negative consequence on its economic prosperity, placing it on crossroads with the US. There is a divide between US and EU about the wisdom and desirability of imposing harsh economic sanctions on Russia. In any such confrontation, EU stands to lose much more than the US, though it can be argued that Russia will be the worst loser. In future, Russia may try to find new potential market for its gas and that could be India. So it is important for India to take its stand on Ukraine crisis carefully without tarnishing its relation with USA. India’s long-term prosperity hinges to some degree on a conflict free neighborhood; that an economically integrated region is in India’s...
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...| Globalization and Sovereignty in Pakistan | | | With a relatively constant rise in economic production over the last forty years and continued advances in communication technology, it is clear that individuals, institutions, and states are connecting and interacting with each other through a variety number of ways. Whether it is chatting with someone on the other side of the globe through social media or the flow of capital in the international banking system, our world has become increasingly interdependent; however, the benefits are not universal. From a Marxist perspective on international relations theory, particularly Wallerstein’s capital economy, I will define “globalization” as a phenomenon constructed by the bourgeoisie (elite members of society) in order to take advantage of developing countries that constitute Marxist proletariat. Using this approach on globalization, I will discuss the effects it has on “sovereignty” followed by a case study on Pakistan as a prime example. Ultimately, I will argue why the idea of sovereignty should still play a role in states like Pakistan. I draw primarily on the work of the German philosopher Karl Marx who, in his Marxist (or ruling-class) theory, claimed that capitalist societies were dominated by the “bourgeoisie” – individuals who control the means of production (therefore power) and take advantage of the proletariat (also known as the working class). Applied to a global scale, the concept of bourgeoisie refers...
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...Pakistan, Problems and Prospects Abstract Pakistan is still in a situation that it does not have a well-established democracy. Since its existence in 1947, right after the freedom from British rule; the founder of the Pakistan Mohammad Ali Jinnah died. Because Jinnah’s death was too early that he did not have time for country to put on right path and there was no constitution when he died. Also Pakistan often existed under martial law. When Pakistan had an elected government, it failed to stay in office and country went under its first martial law. But despite these problems, Pakistan has potential to improve and become a Developed County because of its resources and Exports. Political System of The Pakistan The president of Pakistan, in keeping with the constitutional provision that the state religion is Islam, must be a Muslim. Elected for a five-year term by an Electoral College consisting of members of the Senate and National Assembly and members of the provincial assemblies, the president is eligible for re-election. But no individual may hold the office for more than two consecutive terms. The president may resign or be impeached and may be removed from office due to incapacity or gross misconduct by a two-thirds vote of the members of the parliament. The president generally acts on the advice of the prime minister but has important residual powers. Political Background Both democratic and military governments have ruled Pakistan. The first decade was marred...
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...economic, political/legal, and technological conditions and changes. The social factor affects EPCL in a way that the international economy has just shown some signs of economic recovery, whereas, Pakistan is still passing through tough liquidity crunch and financial crisis due to the recent floods. Therefore, the social behavior of the population of the country has now strongly shifted from that of the spenders to the savers, which has also affected the demand for PVC in ghe domestic market. Moreover, the current uncertainty and law order situation in the country has also contributed in shifting the social behavior of the population from active spenders to passive spenders. Demographic Trends: It focuses on population’s size, age structure, geographic distribution, ethnic mix, and income distribution. It is commonly analyzed on a global basis because of their potential effects across countries’ borders and because many firms compete in global markets. Economic Trends: EPCL has maintained a steady pace of business development through complete business reviews, risk management, technical services, impact of back integration project, customer services, sales/market share, financial risk management, financial review etc to estimate the company’s economic performance. EPCL plays an important part in the development of national economy with a strong sense of responsibility for their people by protecting and preserving the interests, hence growing profits. Political/Legal: It...
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...analysis of Pakistan Submitted by Mohd. Asif ROLL NUMBER – AUD0637 BACHELOR OF BUSINESS ADMINISTRATION- 3C AMITY UNIVERSITY DUBAI CAMPUS MARCH 2013 ACKNOWLEDGEMENTS I wish to thank Mrs.Priyanka Chandanani for her advice and guidance. I appreciate their effort of providing necessary information regarding the paper & also for their support in completing the paper. I would also like to express my gratitude towards my parents for their encouragement and support. Lastly, I would like to extend my sincere thanks to all those at Amity University Dubai who have willingly helped me out with their abilities. PEST Analysis of Pakistan Political If we observe the political situation of Pakistan, much of the politics is based on different ethnic groups. It’s fair to say that the current political situation of Pakistan is in dire need of substantial changes if we compare it to the political systems of leading nations in the world. Pakistan has a democratically elected government where the ruling party is Pakistan People’s...
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