Home / Finance & Market (page 3)

Finance & Market

Performance of Pakistan stock market

  The calendar year 2014 (CY14) has proved to be another good year for Pakistan equities with benchmark KSE-100 Index gaining over 27.3%. It was also evident that during the period under review activity at the bourse lost pace slightly as daily average traded volumes declined by 6.4% to 208 million as compared to 222 million for CY13. Despite this bullish trend only 4 IPOs made their way to the …

Read More »

Electronic banking: scope and prospects

  Pakistan’s Information Communication Technology (ICT) sector has witnessed tremendous growth during the last 15 years or so. Banking sector, though for the wrong reasons, has managed to keep pace with the ICT sector’s fast-paced growth. The abolition of fractional reserve system in 1971 and the post-crisis ‘Quantitative Easing’ have generated a spate of US dollars. These dollars, traveling on the vehicle of foreign trade, have infused the entire global …

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 »

Making banks “financial super markets’

  After the un-ceremonial demise of DFIs and Investment banks, commercial banks have been undertaking many activities, which are not part of their prime mandate. They also undertake medium and long term financing that is not the role of commercial banks. However, to make it look more prudent some of the commercial banks have established fully-owned subsidiaries to undertake ‘other business’ that include insurance, asset management, leasing and Modarabas. This …

Read More »

Need for an enabling regulations for modarabas

  There is a growing consensus among the investors that Modaraba sector is ‘over regulated’. This has not only impeded its growth but also deprived the investors from earning Riba-free return on their investment. On top of that the recent financial scam in Khyber Pakhtunkhwa (KPK), where some ruthless people ripped off investors and the act was termed as ‘Modaraba Scam’ by those who cheated people in the name of …

Read More »

Karachi Stock Exchange categorized as the world’s best stock market

  Karachi Stock Exchange was declared by The Economist as the best market. Brazil and Philippines were beaten by the small Karachi Stock Exchange (KSE), which rose by 40 percent in local currency terms. Of stock markets hunted by The Economist, only Japan’s has performed better. Leaving terrorist explosions the exchange’s strong performance was partly due to improving conditions in Pakistan, including a reasonably free and fair election in May, …

Read More »

Political economy of the budget

  Unrealistic revenue targets weigh on trade and industry growth It rightly said that the budget is the most powerful fiscal instruments at the disposal of the government to implement political commitment and development agenda made public during electioneering campaigns; however the story takes a turn when a political party voted to power. Almost every democratically elected government made promises rather tall claims to take care of Public Sector Development …

Read More »

Islamic banking has an ample scope in consumer financing

  Knowledge, attitude and practices of Islamic banking “Knowledge, Attitude and Practices of Islamic Banking in Pakistan” was the theme of a research survey conducted by the State Bank of Pakistan (SBP) which in fact was the driving force behind the eye catching growth of the banking sector. According to the survey there is an overwhelming demand for Islamic banking in the country that is evenly distributed amongst rural and …

Read More »

Growth of consumer financing in Pakistan: issues & challenges

  Consumer financing has emerged out as one of most prolific aspects of banking in Pakistan as its products including credit cards, personal loans, auto loans and housing mortgage getting prominence and likely demand. It not only contributes towards facilitating the life patterns of consumers, but proves to be a source of improvement for the image building of the banks. Banking sector dealing in consumer finance products has witnessed an …

Read More »