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Finance & Market

Rupee, Dollar and Gold

  Stable foreign currency exchange rate and foreign currency reserves are one of the critical aspects for Pakistan’s ability to engage in commerce with other countries. Volatility in the exchange rate is increasingly being recognized as a concern for Pakistan’s economy. The Pak rupee has depreciated significantly against the US dollar marking a new risk for Pakistan’s economy. After maintaining a range bound movement from 2009 to 2011, the rupee …

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Banking through the history

Achieving new milestones at a faster pace By and large Pakistan has one of the most robust commercial banking systems of the world. It is mainly due to a very vigilant regulator, prudent players and excellent clients. One can point out a few bad incidents, regulatory lapses and failure in compliance but all these were there because the ruling junta tried to facilitate the favorite ones, else sponsors of none …

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Mobile banking – banking for all

  In Pakistan, foreign banks initiated in mid 1990 the concept of electronic banking practices. Domestic banks also adopted the technology and E-banking services like ATM cards and debit cards in late 90s were introduced. The swift improvement in electronic distribution channels has produced tremendous changes in the financial industry, especially with a rising rate of change in technology. The developments happen in information and communication technology are escalating competition …

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Islamic banking – potential of growth reasonably high

Islamic banking has been defined as a system of banking, which is in accordance to the values and the spirit of Islam and is based on principles, which have been put forth by the Islamic Shariah. Not only does this form of banking avoid any interest-based transactions, it also avoids unethical and immoral social practices, which go against Islamic law. Thus the aim of Islamic banking is to work towards …

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Banking for all

  For the past two decades, the banking sector has chosen a new service channel based on the progress of information technology – internet to respond to the changes in customer preferences and needs, increasing competition from non-banks, changes in demographic and social trends, and government deregulations of the financial service sector. In the search for sustainable competitive advantages in the technological financial service industry, banks have acknowledged the value …

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Blending banking with technology

  Over the last one decade banks have been working hard to enhance their outreach, by increasing number of branches but more importantly through deployment of technology. The convergence of telephony and information technology has helped in developing ‘technology highway’. Now an account holder can complete a banking transaction irrespective of time, his location and even his/her primary bank. Initially there was some resistance against use of ‘plastic money’ as …

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Branchless banking in Pakistan

  Pakistan is one of the fastest developing markets for branchless banking in the world where 90% of total bank branches are currently processing real time online banking services across the country. During the last five years average shows that 36 per cent of the transactions were routed through electronic channels depicting a 23 per cent average yearly growth as compared to 2 per cent average growth in paper based …

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Banking sector review for year 2012

  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 …

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Stock market review for year 2012

  Pakistan’s stock markets, particularly KSE is known worldwide for providing the best returns among global stock exchanges. KSE index more recently was expected to show a decline and expected not to breach the hypothetical index value of 16,000. The stock market on the contrary is trading at 16,800 points. As on 30-Dec-11, KSE was trading at 11,347 points giving an annual return to date of 41 percent which is …

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Growth challenges for branchless banking in Pakistan

  The banking industry in Pakistan faces tough competition unleashed in the global arena. Information and Communication Technologies (ICT) have transformed the global economy bringing about a revolutionary change in the financial sector. This revolution finds manifestations today in shape of innovative banking products and services such as Automated Teller Machines (ATMs), Internet banking, tele-banking and so on. Online banking has introduced non-traditional channels of delivering services in the banking …

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