Financial and Business Terms - from An to Ap
Thursday, April 30, 2009
- Analyst: Employee of a brokerage or fund management house who studies companies and makes buy-and-sell recommendations on their stocks. Most specialize in a specific industry.
- Announcement date: Date on which particular news concerning a given company is announced to the public. Used in event studies, which researchers use to evaluate the economic impact of events of interest.
- Annual fund operating expenses For investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are included.
- Annual percentage rate (APR): The periodic rate times the number of periods in a year. For example, a 5% quarterly return has an APR of 20%.
- Annual percentage yield (APY): The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the affect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an APY of 12.68%.
- Annual report: Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, its balance sheet and income statement. SEC rules require that it be distributed to all shareholders. A more detailed version is called a 10-K.
- Annualized gain If stock X appreciates 1.5% in one month, the annualized gain for that sock over a twelve month period is 12*1.5% = 18%. Compounded over the twelve month period, the gain is (1.015)^12 = 19.6%.
- Annualized holding period return: The annual rate of return that when compounded t times, would have given the same t-period holding return as actually occurred from period 1 to period t.
- Annuity: A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
- Annuity due: An annuity with n payments, wherein the first payment is made at time t = 0 and the last payment is made at time t = n - 1.
- Annuity factor: Present value of $1 paid for each of t periods.
- Annuity in arrears: An annuity with a first payment on full period hence, rather than immediately.
- Anticipation: Arrangements whereby customers who pay before the final date may be entitled to deduct a normal rate of interest.
- Antidilutive effect: Result of a transaction that increases earnings per common share (e.g. by decreasing thenumber of shares outstanding).
- Appraisal ratio: The signal-to-noise ratio of an analyst's forecasts. The ratio of alpha to residual standard deviation.
- Appraisal rights: A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently.
- Appropriation request: Formal request for funds for capital investment project.
- Arbitrage: The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist.
Labels: Financial and Business Terms / Dictionary
posted @ 3:13 PM,
,
Don't copy if you can't paste..
Wednesday, April 29, 2009
A well-known motivational speaker gathering the entire crowd's attention,
Said, "The best years of my life were spent in the arms of a woman who Wasn't my wife!"
The crowd was shocked!!!!!!!!
He followed up by saying, "That woman was my mother!"
The crowd burst into laughter and he gave his speech, which was well Received.
About a week later, one of the top managers who had the training decided to use that joke at his house. He tried to rehearse the joke in his head. It was a bit foggy to him.
He said loudly, "The greatest years of my life were spent in the arms of a woman who was not my wife!" Naturally, his wife was shell shocked, murmuring. After standing there for almost 10 seconds trying to recall the second half of the joke, the manager finally blurted out "... and I can't remember who she was !"
As expected, he got thrashing of his life time....
Moral of the story: Don't copy if you can't paste...
Said, "The best years of my life were spent in the arms of a woman who Wasn't my wife!"
The crowd was shocked!!!!!!!!
He followed up by saying, "That woman was my mother!"
The crowd burst into laughter and he gave his speech, which was well Received.
About a week later, one of the top managers who had the training decided to use that joke at his house. He tried to rehearse the joke in his head. It was a bit foggy to him.
He said loudly, "The greatest years of my life were spent in the arms of a woman who was not my wife!" Naturally, his wife was shell shocked, murmuring. After standing there for almost 10 seconds trying to recall the second half of the joke, the manager finally blurted out "... and I can't remember who she was !"
As expected, he got thrashing of his life time....
Moral of the story: Don't copy if you can't paste...
Labels: Jokes
posted @ 12:38 PM,
,
Jobs in Pizza Hut
Pizza Hut invites a number of talented people for finance and other positions to join its team. Positions are;
Senior Manager Finance
Qualification: CA/ACCA/MBA-Fin.
Experience: Five years with reputable organization
Senior /Manager Audit
Experience: Four years with reputable organization
Senior Manager Supply Chain
Experience: Five years with reputable organization
Manager / Senior Manager HR
Experience: Three to four years with reputable organization
Trainee Manager
Qualification: Graduates / Masters in Business Administration
Experience: Fresh candidates
Send you application, CV, recent passport size photograph at following address;
Senior Manager HR, MCR (Pvt) Ltd.
42-S, Dr. Mehmood Hussein Road,
Block-6, PECHS, Karachi
or mail at this email address latest by 20-05-2009
Labels: Jobs
posted @ 10:37 AM,
,
Economic and Business Updates - April 20 to 26, 2009
Monday, April 27, 2009
- IMF Deputy Managing Director John Lipsky tells media persons in Washington that the fund will relax restrictions on Pakistan’s fiscal policy due to worsening global economic situation.
- THE State Bank of Pakistan, easing its monetary policy for the first time in 22 months, slashes key policy rate by 100 basis points to 14 percent citing positive inflation outlook.
- THE IMF projects Pakistan’s current account balance for 2009 at minus 5.9 percent of GDP in dollar terms.
- EXPORTS of textile products declines by 7.58 percent during July-March period of the current fiscal year to $7.193 billion as compared to &7.788 billion of the same period last year, says Federal Bureau of Statistics.
- THE government removes restrictions on industrial units including Al Tuwairki Steel Mills established in the premises of export processing zone from borrowing from local banks other than Industrial Development Bank of Pakistan, discloses the ministry of industries.
- SBP gives signal to HBL and MCB for commencing due diligence for the acquisition of the Royal Bank of Scotland, say sources.
- THE State Bank of Pakistan decides to allow a one-time opportunity for export-oriented industries to refinance their outstanding long-term loans availed from banks/DFIs for import/purchase of plant and machinery with loans under SBPs long-term finance facility scheme to facilitate exporters.
- PAKISTAN’S associated Group is awarding $100 million contracts to two Oklahoma-based companies for the construction of two power plant in Pakistan.
- THE federal cabinet blocks a package of incentive for the Gwadar Export Processing Zone, prepared by the industries ministry to facilitate one private entity, well in forme sources disclose.
- PRESIDENT Asif Ali Zardari approves nine mega projects including the mass transit and circular railway projects for Sindh estimated at Rs400 billion with a directive to the federal and provincial government to complete the projects in time.
- THE State Oil has set up a Jatropha Model Farm for the production of bio-diesel at the Pipri Marshalling Yard, gaged in trial production of bio-diesel from Jatropha seed meeting the standard specification of diesel.
- ICI Pakistan Limited announces commissioning of its Soda Ash expansion project of 65kpa increasing the nameplate capacity of the plant to 350,000 tons per annum.
- THE Federal Board of Revenue plans revenue generation enforcement measures to increase indirect tax collection in the remaining months of 2008-09 with focus on sales tax registration on units operating above the registration on units operating above the registration threshold of Rs5 million, say sources.
Source: Daily paper "Dawn" dated 27-04-2009
Labels: Economy and Business, Pakistan Economy
posted @ 3:07 PM,
,
Jobs in Mobilink
Mobilink invites candiates to join a proud team of unique individuals and become a part of the most preferred telecommunications company. Applications are invited in following business areas;
- Finance Operations
- Corporate Accounting
- Business Analysis
- Budegting and reporting
- Procurement and control
- Enterprise resource planning
- Information Technology Operations
- Legal affairs
- Value added services
- Operations access network
- Cell planning and many more
Find the nature and details of all fresh openings visit mobilinkgsm.
Labels: Jobs
posted @ 10:25 AM,
,
Seminar On ISQC – 1
Friday, April 24, 2009
ICAP has the responsibility to put in place a self regulatory system to provide reasonable assurance that the members engaged in public practice are providing audit services to the highest standards. ICAP being a member body of IFAC has an obligation to implement a mandatory quality assurance program.
CPD Committee, Lahore is organizing the seminar on ISQC - 1 [INTERNATIONAL STANDARD ON QUALITY CONTROL - 1] for members to refresh their knowledge and share their on hand experiences with the implantation of ISQC-1 with the team of Directorate of Professional Standards Compliance & Evaluation, ICAP.
- Date / Day April 30, 2009 – Thursday
- Venue ICAP House, West Wood Colony, Thokar Niaz Baig Lahore
- Registration 4:45 pm
- Presentation 5:00 pm
- Question Answer Session 6:00 pm
- Tea 7:00 pm
Presentation by;
Mr. Shahid Hussain FCA, Director
Professional Standards Compliance & Evaluation, ICAP, Karachi
Mr. Shibli Islam Rehan FCA
Senior Consultant QCR, ICAP
Mr. Haroon Adeel ACA, Senior Manager
Professional Standards Compliance & Evaluation, ICAP, Lahore
Labels: ICAP
posted @ 4:05 PM,
,
Highlights of Monetary Policy April-June 2009
State Bank of Pakistan (SBP) announced Monetary Policy Statement (MPS) on 20th April 2009 and slashed discount rate by 100 basis points to 14.00%. - Government‘s fiscal deficit in the first half of current fiscal year reached to Rs.261 billion and government is determined to achieve full year target of Rs 562 billion.
- Tax collection in first nine months reached to Rs 810 billion and in order to meet fiscal year target of Rs 1300 billion, FBR needs to collect Rs 490 billion in next three months.
- Credit to private sector has been slowed significantly during last nine months owing to sluggish demand from corporates and reluctance of commercial banks to lend due to rising level of Non Performing Loans (NPLs). Net credit to private sector fell drastically to Rs 57 billion in July-March 09 period as compare to last year’s Rs 368 billion.
- Credit to manufacturing sector fell by over hundred billion to to Rs 89.4 billion in July-March period as compare to last year’s Rs 193 billion.
- NPLs heightened to Rs 313.7 billion on December 2008 as compare to Rs 241 billion on June 2008. The major nuisances were consumer finance and textile sector and ratio of NPL to advances in textile sector reached to 15%.Since textile sector’s share in total advances was 20%, it hurt banks badly.
- Fall in Working Capital demand was seen and corporates retired some Rs 47 billion in July-March period. This fall was some how sustained by Fixed Investment which reached to Rs 152 billion in first nine months of fiscal year 08- 09 as compare to last year’s Rs 38 billion. Fixed investments were mainly constituted by power and fertilizer sectors which have entered into certain expansion programs.
- Government retired Rs 170 billion to SBP in March end which was mainly financed through Word Bank’s $500 million, deposit from Bank of China worth $500 million and advance tax collection from corporates.
posted @ 10:06 AM,
,
Financial and Business Terms - from Al to Am
Thursday, April 23, 2009
- All equity rate: The discount rate that reflects only the business risks of a project and abstracts from the effects of financing.
- All-or-none underwriting: An arrangement whereby a security issue is canceled if the underwriter is unable to re-sell the entire issue.
- Alpha: A measure of selection risk (also known as residual risk) of a mutual fund in relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk, instead of accepting the market return. For example, an alpha of 0.4 means the fund outperformed the market-based return estimate by 0.4%. An alpha of -0.6 means a fund's monthly return was 0.6% less than would have been predicted from the change in the market alone. In a Jensen Index, it is factor to represent the portfolio's performance that diverges from its beta, representing a measure of the manager's performance.
Alpha equationThe alpha of a fund is determined as follows:
[ (sum of y) -((b)(sum of x)) ] / n
where: n =number of observations (36 months)
b = beta of the fund
x = rate of return for the S&P 500
y = rate of return for the fund - Alternative mortgage instruments: Variations of mortgage instruments such as adjustable-rate and variable-rate mortgages, graduated-payment mortgages, reverse-annuity mortgages, and several seldom-used variations.
- American Depositary Receipts (ADRs): Certificates issued by a U.S. depositary bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR's are "sponsored," the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADRs. "Unsponsored" ADRs do not receive such assistance. ADRs carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted for the SDR/ordinary ratio, are kept essentially identical by arbitrage. American depositary shares(ADSs) are a similar form of certification.
- American option: An option that may be exercised at any time up to and including the expiration date.
- American shares: Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign issuer. The certificates represent claims to foreign equities.
- American Stock Exchange (AMEX): The second-largest stock exchange in the United States. It trades mostly in small-to medium-sized companies.
- American-style option: An option contract that can be exercised at any time between the date of purchase and the expiration date. Most exchange-traded options are American style.
- Amortization: The repayment of a loan by installments.
- Amortization factor: The pool factor implied by the scheduled amortization assuming no prepayemts.
- Amortizing interest rate swap: Swap in which the principal or national amount rises (falls) as interest rates rise (decline).
Labels: Financial and Business Terms / Dictionary
posted @ 11:03 AM,
,
Revision in Long Term Financing Facility - LTFF
Wednesday, April 22, 2009
In order to facilitate the export oriented industries to overcome the prevailing crises and to remain competitive in the world market, State Bank has issued a SMEFD circular # 09 of 2009 dated 21-04-2009 to broaden the scop of Long Term Financing Facility (LTFF Scheme) circulated vide MFD Circular No. 07 dated December 31, 2007 and other instructions issued from time to time in the matter.
Main features are as follows;
- Its an one time opportunity to the exporters (excluding Textile & Garments) to refinance their outstanding long term loans.
- Long term loans eligible for refinance under the LTFF Scheme must be disbursed during the period from 01-01-2005 to 31-03-2009 to the exporters of eligible Sectors/Sub-Sectors mentioned in Schedule 1 of Scheme excluding Textile & Garments.
- No loan disbursed prior to the 01-01-2005 shall be refinanced under these arrangements.
- Exporters of Textile & Garments Sector will not be eligible for refinance under these arrangements. They will, however, continue to be entitled for fresh financing under LTFF Scheme.
- Refinance to banks/DFIs shall be provided only to the extent of 50% of outstanding principal amount at the time of grant of refinance. Remaining 50% shall continue to be financed by the banks/DFIs from their own sources as per original terms & conditions of respective lending institutions.
- Refinance under the arrangements shall be provided at the markup rate prevailing at the time of availment of refinance from the offices of SBP-BSC under LTFF Scheme.
- Refinance shall be provided on the basis of certification by bank’s/DFI’s Internal Audit with regard to outstanding principal.
- No refinance shall be allowed to non-performing loans (NPLs) classified under SBP Prudential Regulations.
- The banks/DFIs shall prepare the repayment schedule for refinanced portion (principal amount only) in line with the repayment schedule already agreed at the time of sanction / disbursement of the original loan.
- They may, however, amend the repayment schedule in a way that the borrowers can make repayments in equal quarterly or half yearly installments as mentioned in LTFF Scheme, however, total tenor of loan shall remain the same.
- A report from PBA’s approved surveyors (acceptable to bank/DFI) is required with regard to confirmation of machinery strictly with the criteria as laid down in LTFF Scheme.
- In case of consortium arrangements, refinance shall be allowed to financing banks/DFIs individually on submission of requisite documents along-with a certificate (in original) from the lead bank/DFI regarding their share in the consortium.
- The refinance obtained shall be checked by Banking Inspection Department (BID) during inspection of the banks/DFIs to ensure that this has been allowed as per laid down criteria.
- Refinance facility under above arrangements shall be a one-time opportunity effective from the date of issuance of this circular and will remain valid only up to 30th June 2009.
posted @ 1:52 PM,
,
Main Roles of Audit Committee
The board should establish an audit committee of at least three, or in the case of smaller companies two, members, who should all be independent non-executive directors. The board should satisfy itself that at least one member of the audit committee has recent and relevant financial experience.
The main role and responsibilities of the audit committee should be set out in written terms of
reference and should include:
- to monitor the integrity of the financial statements of the company, and any formal announcements relating to the company’s financial performance, reviewing significant financial reporting judgements contained in them;
- to review the company’s internal financial controls and, unless expressly addressed by a separate board risk committee composed of independent directors, or by the board itself, to review the company’s internal control and risk management systems;
- to monitor and review the effectiveness of the company’s internal audit function;
- to make recommendations to the board, for it to put to the shareholders for their approval in general meeting, in relation to the appointment, re-appointment and removal of the external auditor and to approve the remuneration and terms of engagement of the external auditor;
- to review and monitor the external auditor’s independence and objectivity and the effectiveness of the audit process, taking into consideration relevant UK professional and regulatory requirements;
- to develop and implement policy on the engagement of the external auditor to supply non-audit services, taking into account relevant ethical guidance regarding the provision of non-audit services by the external audit firm;
- and to report to the board, identifying any matters in respect of which it considers that action or improvement is needed and making recommendations as to the steps to be taken.
Labels: Auditing
posted @ 9:35 AM,
,
History of Discount Rate
Tuesday, April 21, 2009
Discount Rate is a rate at which State Bank of Pakistan advances loans to commercial banks for three to five days to cover up the liquidity pressure. People are of the opinion that decision of SBP to cut down the discount rate with 100 bps to 14% is wise while observing downward trent of inflation. Lets hope for the best. Brief history of the discount rate is as follows;
- 15-Jan-56 @ 3.00 %
- 15-Jan-59 @ 4.00 %
- 15-Jun-65 @ 5.00 %
- 12-May-72 @ 6.00 %
- 16-Aug-73 @ 8.00%
- 3-Sep-74 @ 9.00 %
- 7-Jun-77 @ 10.00%
- 10-Oct-91 @ 13.00 %
- 10-Jun-92 @ 14.00 %
- 6-Dec-92 @ 15.00%
- 16-Aug-93 @ 17.00 %
- 1-Mar-94 @15.00 %
- 29-Oct-95 @ 16.50 %
- 13-Dec-95 @ 17.00 %
- 13-Nov-96 @ 20.00 %
- 17-Jun-97 @ 19.00 %
- 28-Jul-97 @ 18.50 %
- 29-Oct-97 @ 18.00 %
- 1-Jul-98 @ 16.50 %
- 4-Mar-99 @ 15.50 %
- 3-Apr-99 @ 14.00 %
- 19-May-99 @ 13.00 %
- 5-Jan-00 @ 11.00 %
- 19-Sep-00 @ 12.00 %
- 5-Oct-00 @ 13.00 %
- 7-Jun-01 @ 14.00 %
- 19-Jul-01 @ 13.00 %
- 17-Aug-01 @ 12.00 %
- 22-Oct-01 @ 10.00 %
- 23-Jan-02 @ 9.00 %
- 18-Nov-02 @ 7.50 %
- 11-Apr-05 @ 9.00 %
- 31-Jul-06 @ 9.50 %
- 1-Aug-07 @ 10.00 %
- 31-Jan-08 @ 10.50 %
- 22-May-08 @ 12.00 %
- 29-Jul-08 @ 13.00 %
- 12-Nov-08 @ 15.00 %
- 21-Apr-09 @ 14.00 %
posted @ 11:46 AM,
,
Main Features of new Monetary Policy
The State Bank of Pakistan issued its monetary policy for the second quarter April-June,2009. Main features of the policy are;
- CPI inflation (YoY) declined to 19.1 percent in March, 2009 from a high of 25.3 percent in August, 2008 though it is still much higher than the desired level.
- Improved fiscal discipline and contraction in the external current account deficit is also indicating that aggregate demand is trending downwards.
- Fiscal deficit of Rs251 billion (1.9 percent of projected GDP) for H1‐FY09 and commitment of the government to keep it up to Rs562 billion (4.3 percent of projected GDP) target for the entire FY09 is a significant improvement over the recent past.
- The external current account deficit has narrowed down to $172 million in March, 2009 compared to a deficit of $2.2 billion in October, 2008, strengthening the external sector position considerably.
- Cumulatively, the external current account deficit for the first nine months of FY09 stands at $7.6 billion and is projected to be $9 billion or 5.5 percent of the GDP for FY09.
- Consistent with the spirit of the macroeconomic stabilization program, which is supported by a Stand By Arrangement (SBA) with the IMF, the stock of government borrowings from the SBP has remained well within the target of Rs1274 billion for end December, 2008 and end March, 2009. Given the level of this stock at Rs1094 billion as on 16 April, 2009, the likelihood of meeting the end June target of Monetary Policy Statement, April June 2009 Rs1181 billion is quite high.
- Similarly, strengthening of SBP’s foreign exchange reserve by $4.3 billion during 31 October – 17 April, FY09 and projections that this level will increase to $9.1 billion by endJune, 2009 is a key indicator of emerging macroeconomic stability.
- The burden on the banking system to cater to the needs of various sectors, including government, has increased.
- The growth of the banking system deposits remain weak and the injection of fresh reserve money is constrained, the already dwindling credit to the private sector might be squeezed further.
- SBP closely monitors market’s liquidity position and, keeping in view system’s requirements, calibrates its injections and mop ups of liquidity through open market operations (OMOs). For example, to ease the stress that emerged towards the end of Q3 FY09, SBP injected Rs228 billion, on net basis, during 28 March – 18 April, 2009.
- The positive inflation outlook provides an opportunity to revive the economy, however, the real challenge in this regard is to improve the investment climate.
- Slowdown in domestic economic activity exacerbated by power shortages, decline in external demand due to the global recession, and SBP’s tight monetary policy stance necessary for overall macroeconomic stability are responsible for the fall in demand for credit by the private sector.
- On the other hand, rising Non Performing Loans (NPLs) and availability of alternate avenues to extend credit, such as government and Public Sector Enterprises (PSEs), allowed the banks to be risk averse and shy away from private sector in a high risk and uncertain environment. Easing the monetary policy stance to some extent will send a positive signal in this context but may not be sufficient under the current uncertain economic environment to fully revive the PSC and thus the growth prospects.
- In the backdrop of falling economic activity there is a risk of slippage in the tax revenues. Against a target of Rs1300 billion for FY09, Federal Board of Revenue (FBR) has collected Rs810 billion during July-March, FY09. This means that Rs490 billion or Rs163 billion per month needs to be collected in the remaining three months of the current fiscal year, which appears difficult. The expected shortfall, if any, will likely be compensated by non tax revenues, in particular, through the differential between international and domestic oil prices.
- However, government is cognizant of the need to enhance tax revenues and is planning to take administrative measures, such as tax audits, and broaden the tax base across all sectors of the economy.
- Moreover, outlook of the external sector remains prone to uncertainty. The deepening global recession would negatively affect Pakistan’s exports. Against an actual export growth of 0.2 percent during the first nine months of FY09, the projected export growth of negative 6.5 percent for the entire FY09 is quite a somber reflection of the fast changing global economic environment.
- The projected import growth of negative 14 percent though provides some respite for the outlook of external account. More worrying, perhaps, are the prospects of foreign inflows –
remittances as well as the financial account inflows. Up till March, 2009, the worker’s remittances at $5.7 billion and FDI at $3 billion though look fairly stable but their outlook is uncertain. - The portfolio investment inflows have reversed and stand at negative $1 billion. Given the weak prospects of tapping international financial markets, the reliance on International Financial Institutions (IFIs) and bilateral loans to improve the overall balance of payment position has increased.
- SBP decided to lower the policy discount rate by 100 bps to 14 percent effective 21 April, 2009.
Labels: SBP
posted @ 10:01 AM,
,
Management of the Pakistan Economy - GROWTH, TRADE AND DEVELOPMENT
Monday, April 20, 2009
The underlying objective of the conference, being held at Lahore School of Economics from April 21 to 22, 2009) is to promote dialogue/discussion on key economic management and policy issues facing the country today. The topics and broad areas that would be covered in the different sessions are as follows:
Session 1 – Promoting Stable and Sustainable Growth
The most important economic issue facing the country today is how to stabilize the economy and restore growth. The problem is compounded by the fact that the world is experiencing the worst financial crisis since the Great Depression. Papers and discussion in the session will focus on the issue of restarting and sustaining growth in Pakistan and the implications of the global crisis for economic growth in South Asia.
Session 2 – Free Trade Agreements – Experience and Potential
Besides SAFTA, Pakistan has signed Free Trade Agreements (FTAs) with Sri Lanka, Malaysia and China and is negotiating FTAs with over a dozen other countries. However, the FTAs have not resulted in any significant increased trade with these countries. In this session, papers will focus on Pakistan’s experience with FTAs their potential for promoting Pakistan’s exports and what needs to be done to realize this potential.
Session 3–Industrial Development and Competitiveness
Since the early 1970s, Pakistan has experienced several accelerations in growth but invariably these have been brought to an end by a balance of payments crisis. Throughout this period, Pakistan has maintained an overvalued exchange rate and an incentive structure that favored production for the domestic market or the non-tradable sector. The incentive structure and trade policies have also given rise to an inward looking and rent seeking industrial elite which has become a barrier to accelerating exports. The papers in this session will focus on factors responsible for the current industrial structure and policies needed to diversify and accelerate exports.
Session 4 – Liberalizing Trade and Investment with India: A Recipe for Higher Growth?
Because of sustained and accelerating growth since the early 1980s, today, India is one of the fastest growing markets in the world. Pakistan, as a neighbor could be a major beneficiary of this growth. However, trade between Pakistan and India, especially overland, is highly restricted and direct investment from one country to the other is not permitted. The papers in this session will discuss the potential of trade and investment with India to provide a new vent for growth for the Pakistan economy, as well as its possible adverse impacts on industry and balance and payments.
Special Panel Discussion - Program Design for Effective Service Delivery
In the past decades a lot of expenditure has gone into health, education and other social sectors but has failed to translate into effective programs for public service delivery. Field-based experiments with pilot interventions are the only way to find out what actually works on the ground and better understand the details for a successful intervention. In the panel session we will discuss the evidence from international experiments and lessons for program design of service delivery in Pakistan. {Via}
Session 1 – Promoting Stable and Sustainable Growth
The most important economic issue facing the country today is how to stabilize the economy and restore growth. The problem is compounded by the fact that the world is experiencing the worst financial crisis since the Great Depression. Papers and discussion in the session will focus on the issue of restarting and sustaining growth in Pakistan and the implications of the global crisis for economic growth in South Asia.
Session 2 – Free Trade Agreements – Experience and Potential
Besides SAFTA, Pakistan has signed Free Trade Agreements (FTAs) with Sri Lanka, Malaysia and China and is negotiating FTAs with over a dozen other countries. However, the FTAs have not resulted in any significant increased trade with these countries. In this session, papers will focus on Pakistan’s experience with FTAs their potential for promoting Pakistan’s exports and what needs to be done to realize this potential.
Session 3–Industrial Development and Competitiveness
Since the early 1970s, Pakistan has experienced several accelerations in growth but invariably these have been brought to an end by a balance of payments crisis. Throughout this period, Pakistan has maintained an overvalued exchange rate and an incentive structure that favored production for the domestic market or the non-tradable sector. The incentive structure and trade policies have also given rise to an inward looking and rent seeking industrial elite which has become a barrier to accelerating exports. The papers in this session will focus on factors responsible for the current industrial structure and policies needed to diversify and accelerate exports.
Session 4 – Liberalizing Trade and Investment with India: A Recipe for Higher Growth?
Because of sustained and accelerating growth since the early 1980s, today, India is one of the fastest growing markets in the world. Pakistan, as a neighbor could be a major beneficiary of this growth. However, trade between Pakistan and India, especially overland, is highly restricted and direct investment from one country to the other is not permitted. The papers in this session will discuss the potential of trade and investment with India to provide a new vent for growth for the Pakistan economy, as well as its possible adverse impacts on industry and balance and payments.
Special Panel Discussion - Program Design for Effective Service Delivery
In the past decades a lot of expenditure has gone into health, education and other social sectors but has failed to translate into effective programs for public service delivery. Field-based experiments with pilot interventions are the only way to find out what actually works on the ground and better understand the details for a successful intervention. In the panel session we will discuss the evidence from international experiments and lessons for program design of service delivery in Pakistan. {Via}
Labels: Pakistan Economy
posted @ 8:54 PM,
,
Does the name matter?
Saturday, April 18, 2009
Today in the morning I was reading major newspapers and It was wonderful to learn that another mega project is being inaugurated today by the Karachi Port Trust. However, KPT seems unsure of the name of their project. Is it Pakistan Deep Water Container Port or Karachi Deep Water Container Port? This is nothing short of negligence on the part of the concerned departmental head at KPT. How could they get the name wrong?Labels: Pakistan Economy
posted @ 1:28 PM,
,
Managerial Positions
A leading exploration and production (E&P) company invites applications from professionals of impeccable repute, caliber and quality with natural flare to excel while being excellent team players. The positions include;
General Manager Projects:
- Qualification: Masters in Petroleum / Mechanical / Electrical Engineering with additional relevant qualification.
- Experience: Relevant experience atleast 20 years with minimum of 10 years in senior management position.
General Manager Accounts:
- Qualification: Chartered Accountant / Cost and management accountant
- Experience: Relevant experience atleast 20 years with minimum of 10 years in senior management position.
General Manager Internal Audit:
- Qualification: Chartered Accountant / Cost and management accountant
- Experience: Relevant experience atleast 20 years with minimum of 10 years in senior management position.
Manager Review and Compliance:
- Qualification: Masters in Human Resource, Organizational Behaviour, Law, Management, Public Administration or Chartered Accountant
- Experience: Relevant experience atleast 15 years with minimum of 7 years in management position.
Apply in confidence and send Complete Resume with copies of documents, CNIC and Two photographs at The Advertiser Box # 184 C/o Daily Business Recorder, Karachi. Last date of submission documents is 02-05-2009
Labels: Jobs
posted @ 10:33 AM,
,
Forex reserves rise to $11.22 bln
Friday, April 17, 2009
SBP has confirmed that Pakistan's foreign exchange reserves rose by $50 million to $11.22 billion in the last week ended. SBP's reserves rose to $7.86 billion from $7.80 billion a week earlier while reserves held by commercial banks marginally fell to $3.36 billion from $3.37 billion, the bank said.
Pakistan recently received $500 million from the World Bank and $848 million from the International Monetary Fund, which was reflected in the data last week. Foreign reserves hit a record high of $16.5 billion in October 2007 but fell to $6.6 billion in November last year, largely because of a soaring import bill.
Pakistan agreed in November to an IMF emergency loan package of $7.6 billion to avert a balance of payments crisis. Further, Japan pledges up to $ 1.000 billion aid to support econonic reforms and fight against terrorism.
I want to ask one question to every body that what is the best solution to get rid of Pakistan from these economic and terrerism problems. Is the flow of money in form of aid or loans would be last resort for its survival or the nation have other options. If yes please share......
Labels: Economy and Business
posted @ 3:05 PM,
,
European Central Bank ready to cut interest rates
The European Central Bank will unveil alternative financing measures next month and is ready to trim interest rates again, a policymaker said on Thursday, as new data underlined the scale of the region's recession.
Euro-zone inflation was confirmed at an all-time low of 0.6 percent in March, and the bloc's industrial production plummeted in February underlining the depth of the downturn and adding to pressure for the ECB to ease policy.
Despite the news, ECB policymaker Erkki Liikanen said there were signs of the economy stabilising, although he added it was too early to draw definite conclusions. ECB Executive Board member Jose Manuel Gonzalez-Paramo also reiterated that the bank would lay out new measures next month.
He did not give details of the measures, but made a point of saying the ECB had so far focused its efforts on banks.The comments echoed those of ECB Governing Council member Axel Weber who on Wednesday said ECB measures should concentrate on the clogged up banking sector, rather than capital markets.
Following a steady stream of hints over the past weeks analysts expect the Frankfurt-based central bank to extend the length of time it lends banks cash up to 1year from a current six months.
They are also speculating whether the ECB will follow the U.S. Federal Reserve, the Bank of England and the Bank of Japan down the path of asset purchases. Asked if the central bank was prepared to buy corporate debt, Gonzalez-Paramo said it would do what was needed.
"It (ECB) has always taken necessary action, including increasing the size of our balance sheet to 6 percent of euro zone GDP," said Gonzalez Paramo. "Up till now, our non-conventional measures have been concentrated on the banking sector, which provides 70 percent of euro zone private sector financing."
Labels: Economy and Business
posted @ 10:47 AM,
,
Economic Over View of Syria
Thursday, April 16, 2009
Today is the independance day of Syria. This country got independance at 17th April, 1946 from League of Nations mandate under French administration. Brief economic overview of the country is as follows;The Syrian economy grew by an estimated 2.4% in real terms in 2008 led by the petroleum and agricultural sectors, which together account for about one-half of GDP. Higher crude oil prices countered declining oil production and led to higher budgetary and export receipts. Other details are as under;
- Unemployment rate: 9% (2008 est.)
- Budget: revenues: $10.9 billion expenditures: $13.77 billion (2008 est.)
- Public debt: 41.2% of GDP (2008 est.)
- Inflation rate (consumer prices): 14.9% (2008 est.)
- Commercial bank prime lending rate: 7% (6 November 2008)
- Stock of money: $14.29 billion (30 September 2008)
- Oil - proved reserves: 2.5 billion bbl (1 January 2008 est.)
- Natural gas - proved reserves: 240.7 billion cu m (1 January 2008 est.)
- Current account balance: -$192 million (2008 est.)
- Reserves of foreign exchange and gold: $6.104 billion (31 December 2008 est.)
- Debt - external: $6.72 billion (31 December 2008 est.)
Labels: Economic Overview, Economy and Business
posted @ 3:52 PM,
,
Financial and Business Terms - from Ad to Ag
- Additional hedge :A protection against borrower fallout risk in the mortgage pipeline.
- Adjustable rate preferred stock (ARPS) :Publicly traded issues that may be collateralized by mortgages and MBSs.
- Adjusted present value (APV) The net present value analysis of an asset if financed solely by equity (present value of un-levered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leverage buy-out.
- Advance commitment: A promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price.
- Adverse selection: A situation in which market participation is a negative signal.
- Affirmative covenant: A bond covenant that specifies certain actions the firm must take.
- After-tax profit margin: The ratio of net income to net sales.
- After-tax real rate of return: Money after-tax rate of return minus the inflation rate.
- Agency bank: A form of organization commonly used by foreign banks to enter the U.S. market. An agency bank cannot accept deposits or extend loans in its own name; it acts as agent for the parent bank.
- Agency basis: A means of compensating the broker of a program trade solely on the basis of commission established through bids submitted by various brokerage firms.
- Agency incentive arrangement: A means of compensating the broker of a program trade using benchmark prices for issues to be traded in determining commissions or fees.
- Agency cost view: The argument that specifies that the various agency costs create a complex environment in which total agency costs are at a minimum with some, but less than 100%, debt financing.
- Agency costs The incremental costs of having an agent make decisions for a principal.
- Agency pass-throughs: Mortgage pass-through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association (" Ginnie Mae "), Federal Home Loan Mortgage Corporation (" Freddie Mac") and Federal National Mortgage Association (" Fannie Mae").
- Agency problem: Conflicts of interest among stockholders, bondholders, and managers.
- Agency theory: The analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of anther person, a principal.
- Agent: The decision-maker in a principal-agent relationship.
- Aggregation Process: in corporate financial planning whereby the smaller investment proposals of each of the firm's operational units are added up and in effect treated as a big picture.
- Aging schedule: A table of accounts receivable broken down into age categories (such as 0-30 days, 30-60 days, and 60-90 days), which is used to see whether customer payments are keeping close to schedule.
Labels: Financial and Business Terms / Dictionary
posted @ 12:26 PM,
,
Minimum capital requirement of Banks / DFIs
SBP has revised the minimum Paid up Capital (free of losses) requirements for banks vide BSD Circular No. 07 of 2009 dated 15-04-2009. Now the banks are required to raise their paid up capital (free of losses) as per the following timeframe:
Minimum Paid up Capital (free of losses)
- Rs 6.00 billion upto 31.12.2009
- Rs 7.00 billion upto 31.12.2010
- Rs 8.00 billion upto 31.12.2011
- Rs 9.00 billion upto 31.12.2012
- Rs 10.00 billion upto 31.12.2013
While capital adequacy standards will continue as previously and all banks/DFIs shall be required to increase CAR to 10% w.e.f. December 31, 2009 irrespective of their CAMELS-S rating, till further instructions.
Branches of foreign banks (FBs) operating in Pakistan are also required to raise their assigned capital (net of losses) to Rs. 10 billion within the above prescribed timelines. However, those foreign banks whose Head Offices hold Paid up capital (free of losses) of at least equivalent to US$ 300 million and have a CAR of at least 8% or minimum prescribed by their home regulator, whichever is higher, will be allowed with prior approval of the State Bank to maintain assigned capital as under:
- FBs operating with upto 5 branches are required to raise their assigned capital to Rs. 3 billion latest by 31st December 2010.
- FBs operating/desirous of operating with 6 to 50 branches are required to raise their assigned capital to Rs. 6 billion latest by 31st December 2010
posted @ 9:31 AM,
,
Financial and Business Terms - from A to Ac
Wednesday, April 15, 2009
- Abandonment option:The option of terminating an investment earlier than originally planned.
- Abnormal returns:Part of the return that is not due to systematic influences (market wide influences). In other words, abnormal returns are above those predicted by the market movement alone. Related: excess returns.
- Absolute priority:Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full before junior creditors receive any payment.
- Accelerated cost recovery system (ACRS):Schedule of depreciation rates allowed for tax purposes.
- Accelerated depreciation:Any depreciation method that produces larger deductions for depreciation in the early years of a project's life. Accelerated cost recovery system (ACRS), which is a depreciation schedule allowed for tax purposes, is one such example.
Accounting exposure:The change in the value of a firm's foreign currency denominated accounts due to a change in exchange rates. - Accounting earnings:Earnings of a firm as reported on its income statement.
- Accounting insolvency:Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books.
- Accounting liquidity:The ease and quickness with which assets can be converted to cash.
- Accounts payable:Money owed to suppliers.
- Accounts receivable:Money owed by customers.
- Accounts receivable turnover:The ratio of net credit sales to average accounts receivable, a measure of how quickly customers pay their bills.
- Accretion (of a discount) :In portfolio accounting, a straight-line accumulation of capital gains on discount bond in anticipation of receipt of par at maturity.
- Accrual bond :A bond on which interest accrues, but is not paid to the investor during the time of accrual. The amount of accrued interest is added to the remaining principal of the bond and is paid at maturity.
- Accrued interest :The accumulated coupon interest earned but not yet paid to the seller of a bond by thebuyer (unless the bond is in default).
- Accumulated Benefit Obligation (ABO) :An approximate measure of the liability of a plan in the event of a termination at the date the calculation is performed. Related: projected benefit obligation.
- Acid-test ratio :Also called the quick ratio, the ratio of current assets minus inventories, accruals, and prepaid items to current liabilities.
- Acquiree :A firm that is being acquired.
- Acquirer :A firm or individual that is acquiring something.
- Acquisition of assets :A merger or consolidation in which an acquirer purchases the selling firm's assets.
- Acquisition of stock :A merger or consolidation in which an acquirer purchases the acquiree's stock.
- Act of state doctrine :This doctrine says that a nation is sovereign within its own borders and its domestic actions may not be questioned in the courts of another nation.
- Active :A market in which there is much trading.
- Active portfolio strategy :A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.
- Actuals :The physical commodity underlying a futures contract. Cash commodity, physical.
Labels: Financial and Business Terms / Dictionary
posted @ 1:48 PM,
,
Tax History
Taxes represent a transfer of wealth from the citizens of a country to the ruling power of that country. As such, they have existed since ancient times. The Bible speaks of them and it is clear from the biblical text that tax collectors were generally reviled. Almost anything can be taxed and there are various ways in which taxes can be applied.
The first taxes of which we have a documentary record were applied in ancient Egypt. In ancient times, it is clear that taxpayers were expected to offer up a portion of the agricultural produce they raised from the land to the ruling power of the day.
As economies have evolved, governments and rulers have chosen to raise taxes in different ways. For a long time, many countries raised revenue primarily through taxing imports into the country.
In modern times, the income tax, which is charged as a percentage of all income earned in a period of time has become the most popular method by which governments in developed countries raise revenue. Corporation tax, a tax charged as a percentage of the profits made by incorporated companies, is also significant. Many countries also have sales taxes, or value added taxes, which are charged as a percentage of the selling price of a product or service.
Labels: Taxation
posted @ 12:09 PM,
,
Highest profit in fertilizer sector
Following are the list of fertilizer companies which earn profit after tax for the year ended 31st December, 2008.
- Pak Arab Fertilizer --------Rs.7,160.290 Million
- Fauji Fertilizer -------------Rs.6,525.080 Million
- Engro Chemicals ----------Rs.4,240.430 Million
- Dawood Hercules ----------Rs.3,062.690 Million
- Fauji Fertilizer bin Qasim -Rs.2,899.6200 Million
Among all Pak Arab Fertilizer is at the top of the list which is owned by Arif Habib and Fatima Group equally.
Labels: Economy and Business, Pakistan Economy
posted @ 10:08 AM,
,
10 ways to help audit committees
Tuesday, April 14, 2009
The expanded scope of audit committee responsibilities is daunting. More than ever, top management and boards of directors are being held accountable for identifying, managing, and monitoring company risks.
Audit committees need to oversee accurate financial reporting and disclosure, and help to sustain regulatory compliance, strengthen internal controls, and improve risk management. The increasing stakeholder expectations, along with the desire to make better use of organization monitoring and risk management, call for audit committees to marshal resources in the best ways possible. One resource at which audit committees should be looking for help is internal audit. Here are 10 ways to help audit committees get the most out of internal audit.
Strategy and Alignment
- Understand what your charter means and the role internal audit plays in helping you meet your audit committee responsibilities.
- Compare the audit committee and internal audit charters side by side, then assess gaps and improve alignment.
Team-building and Competency
- Improve the caliber of the chief audit executive (CAE), and help develop the overall quality and stature of internal audit.
- Determine if the internal audit budget is sufficient in light of higher standards for internal controls and good governance.
Support
- Understand internal audit risk assessments and offer input into the internal audit planning process.
- Insist on prioritization of audit issues, along with relevant and timely reporting.
- Ensure management accountability and followup of issues identified by internal audit.
Monitoring and Moving Toward Best Practices
- Expect internal audit to provide ongoing updates and identify new risks going forward.
- Call on internal audit’s help with enterprise risk management and strategic audits (e.g., corporate governance audit).
- Sponsor the quality assurance review (QAR) of internal audit and push for continuous improvement.
Labels: Auditing
posted @ 10:56 AM,
,
HBL or MCB, which one will acquire RBS
Monday, April 13, 2009
Habib Bank Limited (HBL) has written a letter to KSE dated 13-04-2009. Salient features of the letter are;
- The Royal Bank of Scotland is divesting its interest from its operation in the Asia region.
- HBL has expressed an interest to acquire the shareholding of RBS in RBS Pakistan.
- HBL will apply to SBP for obtaining approval to commence the due deligence of RBS Pakistan.
- Upon being granted permission by SBP, HBL shall commence the said due deligence in order to evaluate its offer for the acquisition of the shareholding of RBS Pakistan.
Further, MCB Bank Ltd has also expressed an interest to acquire the shareholding of RBS in RBS Pakistan and have also applied to the State Bank of Pakistan for obtaining approval to commence the due diligence," MCB said in a statement to the Karachi Stock Exchange.
Lets see how many banks will join the race and which one will win it to make its size more giant.
Labels: Banks
posted @ 12:57 PM,
,
Sales Tax - hotels / restaurants
The Federal Board of Revenue has launched a campaign to collect due sales tax from hotels / restaurants sector.
- Non-registered hotels / restaurants get themselves voluntary registered immediately to avoid strict action.
- As responsible tax payer, issue sales tax invoice for every sale and e-file monthly sales tax return.
- law allows collectors to post sales tax officers at hotels /restaurants to monitor sales.
- Avoiding registration, non-issuance of sales tax invoice and non e-filing of monthly sales tax return attacts penalties and fines.
Labels: Taxation
posted @ 9:12 AM,
,
Job in United Bank Limited
Saturday, April 11, 2009
Particulars of the job as under:
Job Description: Senior Risk Analyst
Job Location: Karachi Minimum Education: Master's Degree Degree Title: MBA in General Management, IT or MIS preferred Career Level: Experienced (Non-Manager) Minimum Experience: 3 Years(work experience in Project Management of IT based solutions in Risk & Credit department of a Bank) Apply By: Jul 21, 2009
Visit HERE! to see more details and apply.
Labels: Jobs
posted @ 2:11 AM,
,
Company and dates of board meetings
Ravi Textile Mills 09.04.2009
Arif Habib 09.04.2009
Thatta Cement 10.04.2009
Exide Pakistan 13.04.2009
Karim Cotton Mills 14.04.2009
Pakistan Reinsurance Co. 14.04.2009
Meezan Islamic Fund 15.04.2009
Meezan Balanced Fund 15.04.2009
Meezan Islamic Income Fund 15.04.2009
Meezan Capital Protected Fund-I 15.04.2009
Al-Meezan Mutual Fund 16.04.2009
National Refinery 16.04.2009
Fauji Fertilizer Bin Qasim 16.04.2009
Pakistan Paper Products 21.04.2009
Otsuka Pakistan 21.04.2009
Kot Addu Power Co. 21.04.2009
Packages Limited 21.04.2009
Unilever Pakistan Foods 21.04.2009
Al-Mal Securities and Service 21.04.2009
Shell Gas LPG 23.04.2009
Tri-Pak Films 24.04.2009
IGI Investment Bank 25.04.2009
Shell Pakistan Ltd 15.04.2009
Investec Securities 21.04.2009
Shabbir Tiles and Ceramics 22.04.2009
Bata Pakistan 22.04.2009
IGI Insurance 23.04.2009
Unilever Pakistan 27.04.2009
Siemens (Pakistan) Engineering Co 27.04.2009
Labels: KSE
posted @ 12:59 AM,
,
Social Side of Economic Recession
Friday, April 10, 2009
Given this economic recession, I asked people from different segments of our multi-classed society to account for their monthly income and spending. All the accounts were very revealing. This is the story that moved every one.
An old lady named Suban, in her late 70s may be, she did not know her age, lives alone with no male member to look her after. Having lived all her life in the remote village in district Chitral, her total possession is three goats she had. She takes them out for grazing every day and also performs other domestic chores single-handed. She is healthy, active and happy with life. I once asked her about how she manages her expanses (read budget)? On lot of coaxing she said, "I will be happier if my goat delivers three lambs this time." Surprised, I asked her to explain. She said, "I will sell the lambs and put a new roof on my home and will sell all the milk to live comfortably!" Her budget is simpler but life certainly is tough.
An old lady named Suban, in her late 70s may be, she did not know her age, lives alone with no male member to look her after. Having lived all her life in the remote village in district Chitral, her total possession is three goats she had. She takes them out for grazing every day and also performs other domestic chores single-handed. She is healthy, active and happy with life. I once asked her about how she manages her expanses (read budget)? On lot of coaxing she said, "I will be happier if my goat delivers three lambs this time." Surprised, I asked her to explain. She said, "I will sell the lambs and put a new roof on my home and will sell all the milk to live comfortably!" Her budget is simpler but life certainly is tough.
Labels: Economy
posted @ 2:56 PM,
,
Job in bank
One of the largest local banks are looking for ACCA qualified with good analytical and statistical skills. Prior experience of working in bank, working on statistical models and / or wokring on consultancy assignments (BASEL implementaion, market, credit or operational risks, or any other similar assignments) to Financial Institutions.
Positions are based in Lahore.
Only candidates meeting the above criteria forward their resume to this email!
Labels: Jobs
posted @ 2:18 AM,
,
Recession Updates - Part 2
- The only "deposits" being made on a Ferrari are the ones made by birds flying over them.
- Q: What's the difference between an investment banker and a large pizza? A: A large pizza can feed a family of four.
- Q: What's the difference between a bond and a bond trader?A. A bond matures.
- Q: Did you hear Goldman Sachs has a new cafeteria?A. It's called the Warren buffet.
- Q: What's the Capital of Iceland ?A: About 70 cents.
- A concerned customer asked his stock broker if the recent market decline and volatility worried him.The broker told him that he has been sleeping like a baby."Really?!?" replied the customer."Absolutely, " said the broker,"I sleep for about an hour, wake up, and then cry for about an hour."
- The Difference between Communism & CapitalismIn communism we nationalise the banks and then push them to bankruptcy. In capitalism we push the bank to bankruptcy and then nationalise them.
- A priest, a rabbi, and a mortgage broker were all caught in a ship wreck. Sharks were soon circling around. The sharks eat the priest. The rabbi starts praying fervently, but to no avail, as the sharks eat him as well. The mortgage broker is really getting worried, as a shark is coming for him. But instead the shark puts him on its back, carries him to shore, and lets him off. The mortgage broker asks, "How come you didn't eat me too?"And the shark replied,"Professional Courtesy!"
Labels: Jokes
posted @ 12:45 AM,
,
Recession Updates - Part 1
Thursday, April 9, 2009
- Ali Baba and the forty thieves are now Ali Baba and the thirty thieves.Ten were laid off
- Batman and Robin are now Batman and Pedro. Batman fired Robin and hired Pedro because Pedro was willing to work twice the hours at the same rate
- Iron man now "air-pooling" with Superman to save fuel costs.
- Women finally marrying for love, and not money
- Q: With the current market turmoil, what's the easiest way to make a small fortune?A: Start off with a large one.
- The credit crunch is getting bad isn't it? I mean, I let my brother borrow $10 a couple of weeks back, it turns out I'm now America 's third biggest lender.
- Q: Why have Dubai real estate agents stopped looking out of the window in the morning?A: Because otherwise they'd have nothing to do in the afternoon.
- Q: What's the difference between an American and a Zimbabwean?A: In a few weeks, nothing.
- Dow Jones is re-branded as "Down Jones".
- Quote from a wall street banker: This is worse than divorce. Ive lost half of my assets and I still have my wife?
Labels: Economy and Business
posted @ 11:37 PM,
,
Traditional Economy
Wednesday, April 8, 2009
Traditional economy works fine even in these slow economic times...
The most important factors for the current development were laid in the early nineteenth century. The "rejection of thinking" and "acting as a community" -- meant for the technology -- resulted in enormous increase in the industrial production because the division of work led to higher productivity and new professions. It appeared, on the face of it, as a way to increase the standard of living and quality of life. Best example that can be cited is Taylorism as introduced in Ford automobile factories and other production units in the early industrial age.
Analysis of the society by political and economic thinkers led to development theories, which could not foresee the effects of these policies as evidenced today. The cardinal error by these theorists was the euro-centristic model -- nobody took what was happening in other cultures into consideration.
In Smith's economic system, the free market functioned globally, as long as global meant regional and maximum on a national level. In Marx's political system the democracy functioned internationally, as long as the power base was centrally located. Similar concept is also found in ancient Greek city state models on a local basis. In all the cases, there appears to be consensus on one point that multiple behavioral models (Artenvielfalt) are not acceptable in these theories. But this is precisely the decisive error.
It is in this context that the present development situation can be analyzed. Today, the market factors are democratically functioning in society, which determines the general welfare of the people. Paradoxically, the market – in the traditional sense -- neither takes into consideration the environment nor the traditional cultures that are present in rural areas. Production of goods leads to a certain uniformity because of cost reduction methods. Every effort must be undertaken, so that the production does not fall short of targets under any circumstances. The multi-national concerns attempt by adding more products to their production programs to offer a variety of models: since all parties participating in the market work in similar way, but the demand in the market is relatively fixed and not able to be increased arbitrarily, it is clear where the wastage of resources is taking place.
The winner is the one, who has the largest potential of human resources as long as these can be controlled politically. The intentions and the wishes of so-called democratic countries are understandable, if they exert all possible pressure on others to accept their form of governance. If this effort does not succeed, their system – let us call it western system -- would collapse together with all parties involved in it.
There are incredible factors, which remain unconsidered by the members of the urban culture, they being the innovators and carriers of the enormous misunderstandings and the cardinal errors. These cultures have developed over a long period of time in inter-action with the climate and the environment. Each culture has its own set of rights and should be the subject of research to shed light on this enormous richness. Of course much of the matter has been lost due to the way of thinking and the actions undertaken up till now, but exactly this is the task before us; to track down these materials.
Misuse of environment and resources are hardly a subject of discussion in economic appraisals. Similarly, the richness of traditional cultures, which still exist at least in part in the rural areas, which are typically described as "under-developed" is not mentioned in these appraisals. There is no code or value allocated to them. The damages become visible only when the values are already destroyed. The extent of destroyed traditional cultures is quite evident in the number of museums, i.e. as soon as the traditional cultures began to be considered as moneymaking measures for the institutions, they received recognition as a valid market factor, but in effect became still unstable.
As the international flow of money is not directed towards local industry and national states, there is a trend towards uniformity through optimization and standardization. This uniformity can be concealed through various designs and requires increased consumption of goods. In order to increase the consumption, the consumers (all consumers of the world united!!) require financial means, which are actually not available to the majority of population.
A special sort of market is created at the place where traditional cultures are promoted. Members of the community have a chance to participate, if they consider it a possibility to maintain their basic requirements, i.e. a form of satisfaction of most basic material needs must remain intact.
Analysis of the society by political and economic thinkers led to development theories, which could not foresee the effects of these policies as evidenced today. The cardinal error by these theorists was the euro-centristic model -- nobody took what was happening in other cultures into consideration.
In Smith's economic system, the free market functioned globally, as long as global meant regional and maximum on a national level. In Marx's political system the democracy functioned internationally, as long as the power base was centrally located. Similar concept is also found in ancient Greek city state models on a local basis. In all the cases, there appears to be consensus on one point that multiple behavioral models (Artenvielfalt) are not acceptable in these theories. But this is precisely the decisive error.
It is in this context that the present development situation can be analyzed. Today, the market factors are democratically functioning in society, which determines the general welfare of the people. Paradoxically, the market – in the traditional sense -- neither takes into consideration the environment nor the traditional cultures that are present in rural areas. Production of goods leads to a certain uniformity because of cost reduction methods. Every effort must be undertaken, so that the production does not fall short of targets under any circumstances. The multi-national concerns attempt by adding more products to their production programs to offer a variety of models: since all parties participating in the market work in similar way, but the demand in the market is relatively fixed and not able to be increased arbitrarily, it is clear where the wastage of resources is taking place.
The winner is the one, who has the largest potential of human resources as long as these can be controlled politically. The intentions and the wishes of so-called democratic countries are understandable, if they exert all possible pressure on others to accept their form of governance. If this effort does not succeed, their system – let us call it western system -- would collapse together with all parties involved in it.
There are incredible factors, which remain unconsidered by the members of the urban culture, they being the innovators and carriers of the enormous misunderstandings and the cardinal errors. These cultures have developed over a long period of time in inter-action with the climate and the environment. Each culture has its own set of rights and should be the subject of research to shed light on this enormous richness. Of course much of the matter has been lost due to the way of thinking and the actions undertaken up till now, but exactly this is the task before us; to track down these materials.
Misuse of environment and resources are hardly a subject of discussion in economic appraisals. Similarly, the richness of traditional cultures, which still exist at least in part in the rural areas, which are typically described as "under-developed" is not mentioned in these appraisals. There is no code or value allocated to them. The damages become visible only when the values are already destroyed. The extent of destroyed traditional cultures is quite evident in the number of museums, i.e. as soon as the traditional cultures began to be considered as moneymaking measures for the institutions, they received recognition as a valid market factor, but in effect became still unstable.
As the international flow of money is not directed towards local industry and national states, there is a trend towards uniformity through optimization and standardization. This uniformity can be concealed through various designs and requires increased consumption of goods. In order to increase the consumption, the consumers (all consumers of the world united!!) require financial means, which are actually not available to the majority of population.
A special sort of market is created at the place where traditional cultures are promoted. Members of the community have a chance to participate, if they consider it a possibility to maintain their basic requirements, i.e. a form of satisfaction of most basic material needs must remain intact.
Labels: Economy
posted @ 10:14 PM,
,
Dispose of assets and Write off asset
Dispose of assets means sale of assets against some considerations in cash or in kind, whereasWrite off Assets means charge the asset to the Profit and Loss account without any consideration. It normally happens due to no value of asset avaialable whereas some book value is there appearing in balance sheet.
Accounting Treatment
of Dispose of assets:Dr. - Cash / Bank Account
Dr. - Accumulated Depreciation
Dr. - loss on sale of assetCr. - Cost of asset
Cr. - Gain on sale of asset
Examples are sale of vehicle, office equipment, machinery, etc . . . .
Accounting Treatment of Write off of assets:
Dr. - Accumulated Depreciation
Dr. - Miscellaneous charges - Profit and loss account
Cr. - Cost of asset
Examples are obsolete items of plant and machinery/store and spare, receivables, etc . . .
Labels: accounting
posted @ 1:45 AM,
,
Islamic Banking and Finance
Tuesday, April 7, 2009
Centre of Islamic Banking and Economics has arranged a Road Show on Islamic Banking and Finance. They will reach Institute of Chartered Accountants of Pakistan, Lahore office on the date mentioned below. All members and non members are invited to come over there.
- Lahore at 06-04-2009 (6pm to 8pm)
- 2 CPD Credit hours
Labels: ICAP
posted @ 12:43 PM,
,
Group Term Insurance Scheme
In 1972 a clause 10-B was added to the Industrial and Commercial Employment (Standing orders) Ordinance 1968 making it compulsory for employer to have the permanent workmen insured under Group Insurance.
The relevant clause reads as follows.
10-B. COMPULSORY GROUP INSURANCE:
- The employer shall have all the permanent workmen employed by him insured against (natural death and disability and) death and injury arising out of contingencies not covered by the Workmen's Compensation Act, 1923 (VIII of 1923) , or the (Provincial) Employees Social Ordinance, 1965 (Ordinance No. X of 1965).
- The employer shall in all cases be responsible for the payment of the amount of premia and for all administrative arrangements whether carried out by himself or through an insurance company.
- The amount for which each workman shall be insured shall not be less than the amount of compensation specified in Schedule IV to the Workmen's Compensation Act, 1923 (VIII of 1923).
- Where the employer fails to have a permanent workman employed by him insured in the manner laid down in clauses (1), (2) and (3) and such workman suffer death or injury arising out of contingencies mentioned in clause (1) the employer shall pay, in the case of death, to the heirs of such workman, or in the case of injury, to the workman, such sum of money as would have been payable by the insurance company had such workman been insured.
- All claims of a workman or his heirs or recovery of money under clause (4) shall be settled in the same manner as is provided for the determination and recovery of compensation under the Workmen's Compensation Act, 1923 (VIII of 1923).
Under sub clause 4 it has been made obligatory for employer to pay the claim amount if he fails to have his worker insured. This provision is some time interpreted to arrive at the conclusion that it is not necessary to secure group insurance if employer is prepared to pay the claim amount himself. The correct position is that apart from this liability their is a penalty laid down (SR-7) for not implementing the Standing Orders. As such apart from payment of the claim the employer shall be exposed to the penalty if he does not secure group insurance cover. This version was up held by the competent court (1990 PLC 444).
Labels: Insurance
posted @ 12:30 AM,
,
Corporate Compliance Insight
Monday, April 6, 2009
We all are plunged into to trap of economic crisis in these days. What are its causes? How would we get rid it of? Who will guide us to get into the root cause of it? These all questions are present in our mind but now a very informative blog is created to point out these matters and its solutions.
corporate compliance Insights (CCI) is compliance and governance related blog that includes very informative articles written by top executives in the United States.
Its a professionally designed and managed forum dedicated to online discussion and analysis of compliance topics. I would recommend to visit CCI using their online form or by email and learn more about becoming an author for Corporate Compliance Insights.
posted @ 11:51 PM,
,
Job in Engro Foods
Sunday, April 5, 2009
Engro foods limited (FMCG) is looking for MANAGER ACCOUNTS at Karachi. Details are as follows;
Job Description:
The candidate should be able to:
- Manage general leisure
- Generate quarterly reports
- Handle Corporate Compliance issues
Skills Required:
- 2-5 years of experience of Finance and Accounts.
- Experience of accounting and Group reporting.
- CA / ACCA but local industry experience is a must.
- The candidate should be young, energetic and should have the desire to learn & grow within the Company.
To see how to apply for the said job click here!
Labels: Jobs
posted @ 12:15 PM,
,
Export Refinance Facility
Friday, April 3, 2009
A good news for the exporters who are not availing the export refinance facility. It was available for export of bleached/unbleached cloth with export value of US$ 3.00 (or equivalent) per square meter.
It has now been decided that refinance facility will also be available for export of bleached/unbleached cloth with export value of US$ 2.50 or above per square meter. Accordingly, necessary changes may be made in the Negative List issued by SBP.
Labels: Export Finance Scheme, SBP
posted @ 11:39 AM,
,
May her soul rests in eternal peace
My condolence for the mother of one of the members of Institute of Chartered Accountant of Pakistan, Mr. Abdul Qadeer-FCA, Partner, BDO Ebrahim & Co (R-1544), who passed away for her final abode on March 22, 2009 in Toronto, Canada, will be held on Friday April 3, 2009 from 4.30 p.m. till Maghrib.All members are requested to attend the Dua and pray for the departed soul at F-8/4 Islamabad.
Labels: ICAP
posted @ 10:50 AM,
,
Process of availing Murabaha Finance
Thursday, April 2, 2009
Query from maria qurashi:What is the process of obtaining Murabaha Finance from Islamic Bank?
Comment:
Following process flow has been developed for purchase of raw materials including Cotton, Yarn, Polyester Fiber, and Viscose:
- After necessary Credit and Shariah approvals, Bank and Client will enter into Master Murabaha Fianance Agreement and Agency Agreement listing the assets to be procured.
- The Relationship Manager and/or Bank Officer will educate the customer about the Murabaha process and especially about the importance of placing Order form before / along with placing order to supplier, signing of the declaration before consumption and storing the purchased stock of goods separately from the stock already present in the warehouse for proper identification.
- As an agent, the customer will negotiate the price of the products and finalize details with the seller and subsequently send an Order Form to Bank before / along with placing Order to supplier.
- The terms of trade for purchases are on Spot basis and on Credit as well.
- In case of Spot Purchases, as per order form funds will be disbursed into Client account at Bank for onward Direct Payment to suppliers through Bank Cross Cheques / DD / PO or make Indirect Payment through other banks Cheque/DD/PO/Online Slip within 05 working days of disbursement. Customer will provide copy of payment instrument used as payment evidence to Bank.
- In case of Credit Purchases, Client as Agent of Bank will place the purchase order to its Suppliers and will inform Baank through written request elaborating the terms of Credit i.e. expected time period of Cash Outflows (Maximum Credit period of 40 days) along with amount.
- As per above Credit terms, on or before 40th day, Bank upon request of Client will make disbursement in their account for onward payment to the Supplier through Bank or other bank(s) as mentioned above.
- Upon arrival of goods customer will provide purchase evidence in the shape of Truck Receipts / Inventory Report / Stock Report / Gate Passes to Bank and give and offer to Bank to purchase the goods via declaration immediately (but not later than 10 working days after receipt of Cotton & Yarn and not later than 3 days for other goods). It must be ensured by the customer that the goods are not consumed before the declaration Moreover, customer confirmation regarding purchase price and weight on above referred Purchase Evidences carrying sign & stamp will be sufficient to calculate the declaration amount. Customer will provide Purchase Invoices for at-least 20% of disbursed amount for each sub-Murabaha transaction.
- To ensure that goods etc. are not consumed before signing of declaration, the related Relationship Officer / Relationship Manager will also perform random physical inspections of purchased stock in 10% of the Sub-Murabaha transactions. Telephonic confirmation shall be taken in all the remaining cases.
- Upon confirmation Bank will accept the offer by signing the Declaration and the ownership of assets will transfer. At this stage the tenor of sub-Murabaha, contact price and payment schedule will be finalized through Summary Payment Schedule.
- Upon maturity date the Sub Murabaha will be settled by Client from its own sources.
- For credit purchases profit rate at the day of Declaration will be used to calculate the Contact Price.
posted @ 2:13 PM,
,
World Banks ranks Pakistan first in corporate governance
World Bank Report “Getting Finance in South Asia 2009” has ranked Pakistan first in the areas of corporate governance, performance and efficiency.In the area of access to finance, Sri Lanka ranks first in South Asia, on capital market development and market concentration and competitiveness in the banking sector first slot is grabbed by India.
According to the detailed report on Pakistan the bond market is developing at a lesser pace. The
domestic bond outstanding was 25.16 percent of the GDP, equivalent to $32.41 billion. This consists of mainly government bonds, as the corporate market is yet to develop. The areas on which Pakistan needs to focus are access to finance capital market development, and market concentration.
Access to Finance: Pakistan needs to focus on improving financial outreach through its commercial banking sector. Demographic branch penetration is low with around five bank branches per 100,000 people during the six-year period. To promote branch openings in rural areas, the SBP has introduced the Annual Branch Licensing Policy, which requires commercial banks with 100 branches or more to open at least 20 percent of their branches outside big cities and set up branches in Tehsil Headquarters, where no branch of any bank exists.
Usage indicators showed mixed results. While deposit accounts dropped from 195.84 per 1,000 people in 2001 to 171.14 in 2006, loan accounts per 1,000 grew by almost 98 percent. One would have expected both ratios to grow, given the economic growth experienced by Pakistan over the last few years.
Pakistan is one of the few countries in the world that has a separate legal and regulatory framework for microfinance banking. Though in Pakistan the potential market size is huge (around 30 million), the penetration remains low. Despite a substantial increase in the number of borrowers (from 60,000 in 1999 to around a million in December 2006), huge portions of this potential market remain underserved.
Financial stability: Pakistani banks maintained the regulatory CAR well above 8 percent. Strong returns and fresh capital injections to several banks resulted in this positive trend. Over the six-year period, the ratio increased to 13.33 percent in 2006. Leverage ratio almost doubled to 8.94 percent in 2006.
The gross NPL ratio reduced progressively from 19.6 percent in 2001 to 5.7 percent in 2006. The NPL position of the public bank should be monitored continually, however, because any adverse movements in this sector could have a negative impact on the entire banking industry, as public banks hold a significant share of the lending portfolio.
Banks’ liquidity position should be monitored carefully using measures such as maturity gap analysis, to find out the presence of any liquidity mismatches. The SBP would adopt the Internal Ratings–Based Approach from January 1, 2010, with banks and development finance institutions (DFIs) permitted to implement it sooner if the SBP approves their internal risk management systems.
The Pakistan bond market is still at its development stage and is dominated by government securities at around 97 percent. The lack of growth in the bond market should be a concern, however, as this deprives the market of an alternate funding source.
Corporate Governance: Pakistan leads the region in corporate governance scores. Some of the amendments would improve the self-governance; others, such as seeking SBP approval for 5 percent or more shares, need to be reviewed. Other areas to focus on include greater transparency and disclosure, greater accountability, further disclosures on beneficial ownership, safeguards on stakeholder rights, further improvements to responsibilities of the board, and further emphasis on self-governance for the institutions.
The SBP requires disclosure of beneficial ownership of shareholders, with the threshold set at 3 percent. However, this information is not available to the public. Investor rights relating to voting and shareholder meetings appear to be in place. The government can appoint directors to government-controlled banks only by virtue of its shareholdings.
Provisions for transparency and disclosure have met the main criteria, but the internal audit function has room for further improvement. Disclosure of audit fees paid to external auditors is required. To attract and retain qualified and competent staff, a review of compensation policies is needed. Banks are required to disclose the compensation of directors in detail.
Although the guidelines have been issued, the success of the governance procedure largely depends on commitment by the banks. Their approach to corporate governance should extend beyond simple compliance with legal requirements. This is an evolving process and cannot happen overnight. As such, the regulatory authority surveillance and enforcement is important. staff report
Labels: Economy and Business, Pakistan Economy
posted @ 1:03 PM,
,
Finance Job in Bank
SME Bank invites applications from experienced commerical bankers for following senior management positions:
- Chief Financial Officer
- Chief Internal Auditor
Qualification : Chartered Accountant
Experience : At least three years at similar position
Last Date : April 15, 2009
or visit here! to get more details.
Labels: Jobs
posted @ 10:12 AM,
,
Top 25 Companies for 2007
Wednesday, April 1, 2009
I congratulate the companies that were presented with this prestigious award and hope that this will inevitably go a long way in promoting further development and raising the standards of corporate governance in PakistanKSE top 25 companies for 2007 are:
- Unilever Pakistan Foods Limited,
- Siemens (Pakistan) Engineering,
- Unilever Pakistan Limited,
- Rafhan Maize Products,
- Fauji Fertiliser Company Limited,
- Pakistan Cables Limited,
- Arif Habib Limited,
- Al Ghazi Tractors Limited,
- International Industries Limited,
- Dawood Hercules Chemicals Limited,
- Engro Chemical Pakistan Limited,
- Clariant Pakistan Limited,
- Arif Habib Securities Limited,
- Lakson Tobacco Company Limited,
- Colgate Palmolive (Pakistan) Limited,
- Attock Petroleum Limited,
- Pakistan Petroleum Limited,
- Ferozsons Laboratories Limited,
- EFU Life Assurance Limited,
- Securities Papers Limited,
- Pakistan Tobacco Company Limited,
- Oil and Gas Development Company Limited,
- MCB Bank Limited,
- Indus Motor Company Limited and
- Nestle Pakistan Limited.
Labels: KSE, Pakistan Economy
posted @ 4:43 PM,
,
Delivery of goods outside Pakistan - Accounting and Tax Treatment
Tax Treatment:
Section 101(2) states that "Business income of a resident person shall be Pakistan-source income to the extent to which the income is derived from any business carried on in Pakistan". As the business in connected in Pakistan irrespective whereever the delivery of goods is, all relevant provision of Income Tax would be applicable over this transaction including deducting of witholding tax while making payment with applicable rate.
Accounting Treatment:
First you have to record its normal purchase at cost in Pak Rupee and then you can book sale at the time you deliver the goods to the party.
Labels: Taxation
posted @ 2:55 PM,
,
London - Cynosure of G20 or whole world
London is going to be the host of G20 Summit meeting on Thursday, 02 April, 2009 and has become the focus of global interest. Main aim and agenda of the Summit to cover; - Coordinated macro-economic actions to revive the global economy, stimulate growth and employment.
- Review measures taken and possible further steps to stabilise financial markets
- Reform and improve financial sector & systems.
- Continue to deliver progress on the Washington Summit action plan.
- Reform international financial institutions (IFIs) - International Monetary Fund (IMF), Financial Stability Forum (FSF) and World Bank.
- Enable families and businesses to get through the recession.
Further, the G20 leaders hope in banks' support, increase in expenditures, and more money from the International Monetary Fund to restore growth till the end of 2010.
Lets see whether developing nations would get benefit out of it or it is just a 2 day trip to London of top 20 nations foreign ministers and governers of their central bank.
Labels: Economy and Business
posted @ 9:58 AM,
,
