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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 …

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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 …

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Corporate charity: sense of guilt or what?

  There is something sure sinister about the corporate charity. ‘Give away a few millions out of the billions earned unscrupulously’ is the common refrain. Why do the corporations and the corporate bosses value charity so dearly? It’s a question deeply rooted in psychology than economics. Some may say that charities are tax deductible and therefore offer a way to the giver to attract public attention for a small price. …

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Is import of LNG the right solution?

  The PML-N government is very actively perusing LNG import and also terming it the right solution to overcome Pakistan’s looming energy crisis. However, some of the quarters attribute this to be nothing more than ‘rental power scam’. They insist that it is ‘selecting a lesser evil’ and question the prudence of policy planners. They even go to the extent of saying that the power energy policies of ruling junta …

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The role of gas in rapidly urbanising countries

  While more than half of world’s population lives in cities today, up to three quarters of the population will live in cities by 2050. In Pakistan over 36% of the population resides in urban centres, with over 5 million people moving to cities every year. This significant urbanisation dynamic will undoubtedly intensify pressure on resources, including food, water and more notably energy. How urban resources are allocated will have …

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Indigenous production of gas

  Some of the quarters are spreading disinformation that Pakistan is currently passing through the most difficult phase of its economic history. The country’s acute energy crisis is posing a serious predicament for its feeble economy and volatile national security. The demand is outstripping supply. The expansion at Tarbella is expected to cost US$840 million but it will not be completed before mid to late 2018. Similarly, the nuclear expansion …

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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 …

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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, …

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Adopting Chinese eco-farming best to increase agri yields, meeting food security

  China has developed itself as a major farm producer even though it accounts for 10 percent of cultivable land world-wide it accommodates 20 percent of world food demand while comparing per hectare yields of Pakistan and China, Pakistan’s per hectare rice yield is 3.1 tons whereas China is the largest producer of rice with per hectare yield of 6.5 tons, similarly Pakistan produces pulses per year with per hectare …

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Balochistan’s development potential, investment opportunities

  The underdeveloped province, Balochistan, has tremendous prospective for the growth of the economy as it’s economy is largely based on natural resources like production of Sui gas (a biggest gas field in Pakistan), coal and other marketable minerals, while fisheries, mining, manufacturing industries, trade through public and private organizations are the other possessions of this province making it rich in offering investment and can become a healthy marketplace provided …

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