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Will the low interest rates support the private sector?

  Current benchmark interest rate at 7 percent is the lowest in 42 years in Pakistan. Last month, the central bank kept its policy rate unchanged at after lowering its rate by 100 bps to 7 percent as it was in May. The cut in interest rates would only benefit the economy if the initiative is to support the private sector, otherwise the government’s excessive borrowing from the banking system …

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Banking sector review

  The banking sector through CY13 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. State Bank of Pakistan require banks to have minimum capital of PKR 10 billion by December 2014, which will be a challenge for banks below the required threshold forcing another round of mergers and acquisitions. The CAR for …

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Iran’s nuclear deal not helpful for Pakistan gas pipeline

  Iran and a group of 6-states led through the US reached a historic agreement on July 14, 2015 considerably limit Tehran’s nuclear ability for greater than a decade in return for lifting global oil and monetary sanctions. The agreement culminates 20-month of negotiations on a deal that US President B. Obama had long sought as the greatest diplomatic attainment of his government. Whether it portends a fresh relationship between …

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69th Independence Day celebrations

  SBP launches vision 2020 to ensure a robust financial system in Pakistan The collective efforts of the government as well as Pakistan Army for restoration of peace and effectively addressing the security concerns in the wake of Zarb-e-Azb Operation was truly reflected in the extra ordinary zeal and fervor to celebrate 69th Independence Day was quite indicative of the improved confidence of the people towards the visible improvement in …

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Pakistani youth competent to shape country’s future

  Pakistani youth no doubt are the asset of Pakistan as they have ability and hold the potential to build their future and that of their country. Young people posses the vigor to enthusiastically contribute in governance, democratic and socio-economic progress. It is necessary to empower young citizens and offer them with plentiful chances in order to engage them in social, political and economic affairs of the society as future …

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Under FTA and PTA Agreement: Importance of trade with China, Iran, Turkey and Sri Lanka

  PTA is a bilateral agreement signed between two trading countries to trade certain products at reduced tariff and let go of them completely to ensure buyers of one country import from the other. Signing of PTA or FTA with any country will promote trade and foreign currency movement. The larger banks e.g. UBL, HBL , ABL, MCB and NBP are expected to lead the way with RMA arrangements to …

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Sports industry of Sialkot: Potential to contribute in promoting our export regime and the industry

  Sialkot sports industry has been producing sporting goods for over a decade and is one of the industries through which Pakistan has gained global recognition. The industry initially commenced with production of sporting goods involving wood e.g. cricket bats, hockey sticks, tennis, badminton rackets etc. Over the years and influx of modern equipment, the Sialkot sports industry is now able to manufacture any product and in any material. The …

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Impact of low oil prices on Pakistan’s economy may resolve energy crisis

  Almost 40 percent of the world oil supply and price is controlled by the largest cartel in the world i.e. OPEC. Being an export commodity, GDP of exporting nations is defined through the price of oil, subsequently budgets and expeditions are finalized. It is in vested interest of OPEC nations to keep oil prices high. There have been numerous instances where OPEC has commented on price trends and claimed …

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New aviation policy encourages public-private partnership

  The introduction of the new National Aviation Policy is timely considering the fact that Pakistan has a negative growth of its aviation industry. In contrast to other countries in the region, aviation sector’s contribution in Pakistan was below 0.01 percent. Countries like India, Malaysia, Philippines and Thailand aviation sector’s contribution ranged between 1.5 percent and 9.0 percent while only 8 percent of the 180 million population of Pakistan have …

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Performance of the banking sector in Pakistan — Impact of low interest rate on credit

  The banking sector through CY13 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. SBP require banks to have minimum capital of PKR 10 billion by December 2014 which has been a challenge for few banks. The CAR for the banking industry was 17.1 percent in CY14 as compared to 14.9 percent …

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