Financial Risk Manager

Ways of Financial and Risk Management

Two Opposite Suicides

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posted @ 10:59 AM, ,

Self Appraisal

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A little boy went into a drug store, reached for a soda carton and pulled it over to the telephone. He climbed onto the carton so that he could reach the buttons on the phone and proceeded to punch in seven digits (phone numbers).

The store-owner observed and listened to the conversation:

Boy: "Lady, Can you give me the job of cutting your lawn?
Woman: (at the other end of the phone line): "I already have someone to cut my lawn."

Boy: "Lady, I will cut your lawn for half the price of the person who cuts your lawn now."

Woman: I'm very satisfied with the person who is presently cutting my lawn.

Boy: (with more perseverance) : "Lady, I'll even sweep your curb and your sidewalk, so on Sunday you will have the prettiest lawn in all of Palm beach, Florida."

Woman: No, thank you.

With a smile on his face, the little boy replaced the receiver. The store-owner, who was listening to all this, walked over to the boy.

Store Owner: "Son... I like your attitude; I like that positive spirit and would like to offer you a job."

Boy: "No thanks,

Store Owner: But you were really pleading for one.

Boy: No Sir, I was just checking my performance at the job I already have. I am the one who is working for that lady I was talking to!"

This is what we call "Self Appraisal"

Hey Guys,

One more thing to say...

Self appraisals are very important these days, because you people just think, how we complain about others' skill or performance, even including me??? But, if we think about our own skills and performance... hmmmm...!!!??? So, keep urself appraising frequently, both personally and professionally, with life as well as career. Just felt like sharing few words with you guys.


posted @ 10:02 AM, ,

Difference Among CV, Biodata And Resume

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People use the words RESUME, C.V., and BIO-DATA interchangeably for the document highlighting skills, education, and experience that a candidate submits when applying for a job. On the surface level, all the three mean the same. However, there are intricate differences.


Resume Is a French word meaning "summary", and true to the word meaning, signifies a summary of one's employment, education, and other skills, used in applying for a new position. A resume seldom exceeds one side of an A4 sheet, and at the most two sides. They do not list out all the education and qualifications, but only highlight specific skills customized to target the job profile in question. A resume is usually broken into bullets and written in the third person to appear objective and formal. A good resume starts with a brief Summary of Qualifications, followed by Areas of Strength or Industry Expertise in keywords, followed by Professional Experience in reverse chronological order. Focus is on the most recent experiences, and prior experiences summarized. The content aims at providing the reader a balance of responsibilities and accomplishments for each position. After Work experience come Professional Affiliations, Computer Skills, and Education


C.V Is a Latin word meaning "course of life". Curriculum Vitae (C.V.) is therefore a regular or particular course of study pertaining to education and life. A C.V. is more detailed than a resume,
usually 2 to 3 pages, but can run even longer as per the requirement. A C.V. generally lists out every skills, jobs, degrees, and professional affiliations the applicant has acquired, usually in chronological order. A C.V. displays general talent rather than specific skills for any specific positions.


Bio Data the short form for Biographical Data, is the old-fashioned terminology for Resume or C.V. The emphasis in a bio data is on personal particulars like date of birth, religion, sex, race, nationality, residence, martial status, and the like. Next comes a chronological listing of education and experience. The things normally found in a resume, that is specific skills for the job in question comes last, and are seldom included. Bio-data also includes applications made in specified formats as required by the company.

A resume is ideally suited when applying for middle and senior level positions, where experience and specific skills rather than education is important. A C.V., on the other hand is the preferred option for fresh graduates, people looking for a career change, and those applying for academic positions. The term bio-data is mostly used in India while applying to government jobs, or when applying for research grants and other situations where one has to submit descriptive essays.

Resumes present a summary of highlights and allow the prospective employer to scan through the document visually or electronically, to see if your skills match their available positions. A good resume can do that very effectively, while a C.V. cannot. A bio-data could still perform this role, especially if the format happens to be the one recommended by the employer.

Personal information such as age, sex, religion and others, and hobbies are never mentioned in a resume. Many people include such particulars in the C.V. However, this is neither required nor considered in the US market.


posted @ 10:57 AM, ,

House Market in US

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Sales of previously owned U.S. homes rose in April, a report showed on Wednesday, providing new evidence the housing market is stabilizing and backing views that the recession is nearing an end.

The National Association of Realtors said sales climbed 2.9 percent to an annual rate of 4.68 million as the traditional spring home-buying season swung into gear. The positive picture, however, was dimmed by a separate report showing applications for home loans fell to their lowest level since early March last week as mortgage costs rose.

Worries about the government's ability to fund costly measures to rescue the economy drove longer-dated government bond yields higher on Wednesday, with the spread between the 2-year and 10-year Treasury notes widening to a record 2.75 percentage points. The rise in bond yields threatens to push up borrowing costs for consumers and businesses, and U.S. stocks sold off on concerns the economy could suffer. Major indexes ended more than 1 percent lower. Economists, however, were heartened by the home sales data and said borrowing costs had not moved up enough to imperil the housing market's chances of recovery.

"I don't think it's a threat as long as mortgage rates stay low and so far they have," said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts.

In general, the data was seen as a fresh hint that the steep 17-month U.S. economic downturn, triggered by the collapse of the housing market, was easing and could well end by the third quarter, as a survey published by the National Association of Business Economists predicted. The pace of job losses slowed last month, claims for unemployment aid have come off their peaks, and consumer confidence has risen from recent rock-bottom levels.

"The national economy is showing some initial signs of stability," U.S. Treasury Secretary Timothy Geithner said in Boston as he announced $1.5 billion in federal tax credits for community development projects. "This is just the beginning, however. We have a long way to go."


posted @ 11:39 AM, ,

Sugar Industry Is No More Sugar For Owners

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Look at the Profit / (Loss) after Taxation for the year ended 30-09-2008 of some Sugar Industries and analyse whether they are producing sugar for their owners or loss making machines.


posted @ 4:07 PM, ,

Golden Rules for Career Success

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There are some basic career success related rules that everyone should know but many don’t.

By Richard Moran

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posted @ 12:30 PM, ,

Jobs in UMT

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University of Management and Technology (UMT) is a premier educational institution of higher education having ranked by HEC in category “W” thus placing it among the few select universities in the country. The university offers post-graduate, graduate and undergraduate programs.

Following posts are available in University of Management and Technology
  1. Director Quality Assurance

  2. Director Finance / Treasurer

  3. Manager University Development

  4. Manager Accounts

  5. Manager Internal Audit

  6. Deputy Manager Training and Development

  7. Executive Secretary to the Rector

  8. Deputy Warden (Female)

To see the details and to apply click here.


posted @ 12:05 PM, ,

Bomb Blast in Lahore

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Huge explosion was hear ed when I was sitting in my Office near Mall Road. People are of the view that it was near Lahore High Court. However, the details are being ascertained by the media representative.

May Allah keep all of us in safe custody and bestow blessing and forgive our sins.


posted @ 10:59 AM, ,

Pre-Budget FY10: Structural Reforms Led Budget

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The budget 2009-10 is expected to deliberate on Pakistan’s long-standing structural issues, led by IMF’s tough performance and qualitative criteria. This includes elimination of electricity subsidy, resolution of circular debt, tax administration & policy action plan (including merger of income & sales tax department, carbon tax & introduction of VAT) and lastly, formation & activation of single treasury accounts.

What has changed from last year?

Unlike the outgoing fiscal year, the GoP’s ability to finance budget deficit will be better placed, driven by commitments from Friends of Pakistan and IFIs. Resultantly, the financing mix will shift from domestic sources to external. This should take the pressure off bank borrowing.

The subsidies on fuel and electricity will be eliminated. GoP had budgeted Rs295bn worth subsidies for FY09, which is likely to decline in FY10. However, subsidy to agriculture sector is expected to continue even in FY10.

Higher Public Sector Development Program (PSDP). Recent IMF approval for counter-cyclical policies to accommodate the recent external flows commitment will stimulate the PSDP allocation for next fiscal year. In FY09, GoP has slashed its development budget massively, due to constraint financing options.

Pro-market budget on the cards

Advisor to PM on Finance Shaukat Tarin has called next budget as - pro-growth, poor and markets. We also view the next budget as positive, even in the presence of IMF’s looming tax threat. The reasons why we are positive are as follows:

Tax on real estate, services, gross assets likely

As this budget will be supervised by IMF, we revisited IMF notes and extracted the key highlights and recommendations regarding taxes, which are as follows:

Market outlook

We are positive on the market, however, sector wise we expect OMC’s and Cements to stage a strong recovery. The budget FY10 is likely to be a non-event for E&Ps, Power, Oil & Gas Marketing and Financial sector. However, it is likely to carry good news for Cements, Autos, and Fertilizer sector.

Our top picks are POL, OGDC, PPL, FFC, PTC, PSO and Hubco. Additionally, on the back of our interest rate outlook we also advise investors’ to keep a track on high quality leveraged plays like DGKC, Lucky & ENGRO.

Report by JS Research

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posted @ 10:14 AM, ,

Job in Engro Polymer

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Engro Polymer & Chemicals Ltd. (EPCL) is a subsidiary of Engro Chemical Pakistan Ltd and has recently expanded and back integrated its operations. They have a vacancy for a following post.

Please email your CVs at with "ACA General Accounting" mentioned in the subject line by May 31, 2009.


posted @ 9:47 AM, ,

Economic and Business updates - From 18th May to 24th May, 2009

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Source: Dawn Economic and Business Review dated May 25th, 2009

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posted @ 4:11 PM, ,

Economic Cost of War

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Growing extremist violence has crippled the economy in northwest Pakistan, made tens of thousands of people unemployed and exacerbated the poverty that breeds fundamentalism, business leaders say.

North West Frontier Province (NWFP), which borders Afghanistan and Pakistan’s capital Islamabad, is rich in agriculture, minerals, stunning mountain scenery once popular with tourists and multiple local industries.

But the 21st century has brought decline owing to extremist violence in the adjacent federally administered tribal areas (Fata) and the NWFP district of Swat, where the Taliban launched an uprising two years ago.

‘Around three-quarters of our industries have closed since the war in Afghanistan started but most have closed in the last two to three years,’ Sharafat Mubarak, president of the local chamber of commerce and industry, told AFP.

Before the September 11, 2001 attacks on the United States which precipitated the invasion of Afghanistan and ensuing Taliban insurgency, 2,254 industries were functional in NWFP, of which just 594 operate today, he said.

Read at Dawn

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posted @ 3:37 PM, ,

Military Inc.: Inside Pakistan's Military Economy

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Writing about the military in Pakistan can be risky business and the author of this book has shown tremendous courage in publishing this important work. However, the merit of this book is not because it is daring but rather because of the intellectual rigor and empirical detail provided. Unlike anti-establishment provocateurs who can often claim courage of conviction but not much else, Dr. Siddiqa has provided us with a well-substantiated account of financial hegemony in the military that deserves applause. While recognizing the vital importance of the military itself, the book unravels how essential security can be easily manipulated to accumulate wealth for a powerful elite.

The author starts with a structural premise that defines the phenomenon of "milbus" as "military capital used for the personal benefit of the military fraternity, especially the officer cadre, which is not recorded as part of the defence budget." She then goes on to situate this concept within the larger literature on the military industrial complex. Her lucid prose is also augmented by clear, tables, organizational charts, graphs and Venn diagrams. Her findings are staggering: for example, the amount of land owned by military officers through subsidized schemes amounts to $4.6 billion. The military pensions being offered are five times the amount for civilian officers. The role of the Fauji Foundation and other military organizations in running commercial enterprises that range from cereal manufacturing to running schools is astounding.

The usual argument given by proponents of milbus is that the military is the most disciplined organization and can do everything more efficiently. Yet, this logic is defied by most of the world's leading economic powers where development has occurred through private enterprise by educated and responsible citizens. Perhaps the author could have spent more time in evaluating these arguments. Nevertheless, given the range and scope of the matter at hand, Dr. Siddiqa has done a marvelous job with this manuscript. One can only hope the military will not feel threatened by this constructive criticism and use the the book as a means for initiating reform. (Review By Saleem Ali)

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posted @ 2:28 PM, ,

Financial and Business Terms - from Bus to Buy

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posted @ 10:54 AM, ,

Every One Loves Disney Parks - Orlando

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Orlando is one of the best cities in the world. This city is popular not only among all children but elders also love it. Here children are entered into a world full of fantasies and adults become the children. Its is a host city of the largest and most popular family destination with the most magical theme park in the world, Orlando is the city that makes dreams come true for people of all ages. The fun starts when planning your magical vacation, and at Orlando Fun Tickets our goal is to make your experience special from the beginning. Millions of people look forward to visit Orlando every year, therefore they need to make sure that how to make the right decisions when purchasing your theme park and Disney World tickets for their trip.

There are number of companies available in the market which can provide you Walt Disney World tickets. However, if you are finding a company to purchase discount Walt Disney World tickets, every one should be a legitimate company. You can get Disney Tickets from here as they are licensed and bonded Florida Seller of Travel, IATA certified and an authorized ticket provider. If you are preparing for your trip to Orlando, I give you guarantee that you would get the quality and service here.

I personally like Universal Studio that is made up of two theme parks and city walk that is a famous nighttime entertainment attraction. Two Theme parks inculde Universal studio and Island of adventure. Universal Studios allows you to come up-close and personal with some of your favorite Universal pictures rides! Ride the movies and learn how the famous films were created! Avoid the JAWS of a giant shark on a boat adventure! Fight aliens and save the day with Men in Black! Ride along with Jimmy Neutron and Shrek in their 3-D adventures, and so much more.
Visit the neatly laid out site and see what they are offering and how. has the best deals to get you into all of the Disney Parks in Orlando.


posted @ 3:17 PM, ,

More Jobs in United Nations

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There are a number of jobs available in United Nations. You can find the details and other description of the jobs opened by United Nations and find more jobs in United Nations here.


posted @ 3:07 PM, ,

Integrated Marketing Communication in Pakistan

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Integrated Marketing Communication in Pakistan live here.


posted @ 11:59 AM, ,

Mera Sitara Bhujha Nahi Hey - By Dr. Safi Hasan

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"Mujhey fikry rakhty safar nahi, mujhey dobney ka khatar nahi
meri kashtiaan hain yaqeen kee meri baadbaan dua key hain"

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posted @ 5:36 PM, ,

Aid For Pakistan

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Defense Secretary Robert Gates last month pressed Congress to complete the war funding bill by May 25 or his department could run out of aid for Pakistan this month and potentially run out of other funds for some military operations by July.

Congress will miss that deadline because the House and Senate must still work out their differences and lawmakers are due to leave Friday for a weeklong break for the Memorial Day holiday.

"We've checked with the Pentagon and they're satisfied that if we finish this when we get back there will be adequate time to fund everything that our troops need," said Democratic Majority Leader Harry Reid.

Key differences include the provisions for the IMF. The House left out the funding entirely and House Appropriations Committee Chairman David Obey has expressed strong reservations about including it.

"I am very, very reluctant to support any additional funding for the IMF... so long as the Europeans continue to be as modest as they are in terms of their actions on the stimulus front," Obey said during a hearing.

The Senate rejected an attempt by some Republicans to strip the provisions for the IMF money and support for the gold sale. But they agree to an amendment for consultations and reports to Congress about the IMF.

The House and Senate also differed on how much economic aid to give Pakistan. They both provide $400 million to help train Pakistan's counterinsurgency forces as they try to battle militant Taliban fighters spilling over its border with Afghanistan. But the Senate offered Pakistan $500 million in economic aid while the House offered almost $600 million. The House added $3.1 billion for the Pentagon to buy eight Boeing Co C-17 military transport aircraft and 11 Lockheed Martin C-130 transport planes, but the Senate did not.

Republican Senator Kay Bailey Hutchison initially tried to push an amendment aimed at giving some 789 Chrysler dealerships that are being closed more time to unload their inventories. She dropped her effort after the bankrupt automaker pledged to help those dealers beyond a June 9 deadline it had imposed.

Senators also agreed to include a provision that would block the release of photographs of detainee abuses under the Freedom of Information Act. The American Civil Liberties Union has spent years suing the government for the release of the pictures.


posted @ 1:00 PM, ,

Mobile Communications Rating

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Mobilink faces funding risks, economic uncertainty, weak cash flow protection, intense competition. We have raised the corporate credit rating on Mobilink to 'CCC+' from 'SD' and the issue rating on its senior notes to 'CCC+' from 'D'. Developing outlook reflects the outlook on Pakistan's macroeconomic and operating environment.

Standard & Poor's Ratings Services today raised its long-term corporate credit rating on Pakistan-based wireless service provider Pakistan Mobile Communications Ltd. (Mobilink) to 'CCC+' from 'SD' (selective default). The outlook is developing. At the same time, we raised our issue rating on Mobilink's US$112.2 million senior unsecured notes due 2013 to 'CCC+' from 'D'.

This upgrade came after Standard & Poor's lowered the corporate credit rating to 'SD' on May 12, 2009, following the announcement by Mobilink of completion of the tender offer to repurchase US$137.8 million of initial notes for US$100.6 million in cash. Standard & Poor's, based on its criteria, had viewed the tender offer by Mobilink as a distressed exchange.

The rating on Mobilink reflects the company's high exposure to funding risks and economic uncertainty, weak cash flow protection measures, and highly intense domestic industry competition. These risks are partly offset by strategic benefits from its parent, Orascom Telecom Holdings S.A.E. (B/Stable/--), and the company's leading but weakening market position in the country.

"In our view, Mobilink is significantly exposed to the weak macroeconomic environment, external liquidity position and security situation in Pakistan (CCC+/Developing/C)," said Standard & Poor's credit analyst Yasmin Wirjawan. "This could result in funding challenges for Mobilink, which has historically relied significantly on local financing for growth and investment in the domestic wireless market. Also, most of the company's debt comprises local borrowings." The developing outlook reflects uncertainty regarding Pakistan macroeconomic or operating environment, which could affect the company's funding access and growth opportunities in the local wireless market.

"Mobilink's financial profile is weak, in our opinion, with aggressive cash flow protection measures," Ms. Wirjawan said. Adjusted debt (excluding fair value of cross currency swaps) to EBITDA deteriorated to 4.0x as of Dec. 31, 2008, from 3.2x as of Dec. 31, 2007, led by higher debt due to aggressive capital expenditure and depreciation of the local currency.

"However, we expect the company to improve its financial metrics to remain compliant with its financial covenants, which are currently under pressure. The improvement is expected through significant reduction in capital expenditure, support from Orascom through deferral of management fee, and recent repurchase of notes," Ms. Wirjawan added. "Nevertheless, we view the company's repurchase of notes as an aggressive financial management strategy."

Pakistan's cellular market is intensely competitive, resulting in lower subscriber numbers and market share for Mobilink. Its market share is currently 31% (according to the regulator) after slipping consistently from 64% at year-end 2004. The decline is partly attributed to the change of subscriber accounting policy. Nevertheless, Mobilink continues to be the leader in Pakistan's wireless market.

We believe parent Orascom would continue to provide support to Mobilink, if required, considering: (1) the cross-default clause at the parent company in the event of a covenant breach of material subsidiaries, including Mobilink; and (2) Mobilink is the second-largest operation of Orascom and accounted for 20.6% of the consolidated EBITDA for 2008.


posted @ 9:41 AM, ,

China Emerges as Auto Epicenter

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America's auto titans are dismantling their global empires. But across the Pacific, it's as if the global economic forces that have pummeled Detroit never struck. Chinese auto sales are up, and this year China is projected to displace Japan as the world's largest car producer.

Now, the auto world is buzzing that China's auto industry may try to pick up the pieces of Detroit -- at a bargain.

Chinese companies have tried to dampen speculation, issuing regulatory filings that deny bids to buy Ford's Volvo or General Motor's Saab. But there's little doubt among analysts that Chinese automakers are interested in the United States and that Detroit's automakers are interested in them.

Buying up iconic brands such as Hummer or Saturn could supply Chinese automakers with the technological expertise to help them leapfrog past long-established competitors, said Kelly Sims Gallagher, a lecturer at Harvard University's Kennedy School of Government, who wrote a book on Chinese automakers.

"That's where Chinese firms are weakest," she said. "They have world-class business and manufacturing capabilities now. What they still lack is technological know-how, systems integration, being able to design new vehicles from scratch and get them to a manufacturing line."

China still suffers from its reputation of being a copycat manufacturer. An acquisition could lend clout to some of the nation's 100 car companies that are largely unknown outside their home country.

Such a deal would be "off-the-shelf legitimacy that you can purchase," said Aaron Bragman, an auto analyst with IHS Global Insight.

The global auto industry is restructuring. Italy's Fiat is on the verge of taking control of Chrysler. Last year India's Tata Motors, already famous for its $2,000 Nano, acquired Jaguar and Land Rover.

And China's auto sector has emerged as a threat to the long-standing pecking order. Earlier this year, Geely Automobile, one of China's largest private carmakers, purchased an Australian drivetrain transmission supplier, a leading gearbox manufacturer. Weichai Power, one of China's top diesel engine manufacturers, acquired a French diesel engine producer. Another Chinese company, BYD, which counts Warren E. Buffett as an investor, launched a mass-market plug-in electric car, ahead of GM's anticipated Chevrolet Volt.

Detroit's annual auto show in January was somber, but Shanghai's show dazzled attendees with throngs of models, rock bands and light shows. This year, Nissan skipped Detroit and attended the Chinese event in April. Mercedes-Benz, BMW and Porsche all unveiled new-vehicle models in Shanghai.

"The center of gravity is moving eastward," Dieter Zetsche, chairman of Daimler, told reporters at the show.

"When we look back 20 years from now, the year 2009 is likely to be viewed as the year in which the baton of leadership in the global auto industry passed from the United States to China," Jack Perkowski, a Western transplant and former chairman of a Beijing auto parts company, wrote in his blog "Managing the Dragon."

To get more details visit here!


posted @ 6:52 PM, ,

Financial and Business Terms - from Bra to Bro

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posted @ 10:08 AM, ,

Does Economic Recession Affect Every One?

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A bird has no concern with the economic recession the whole world is confronting with. Its just because that it simply follows the rules or principles developed by the nature and these are not fabricated and developed by itself.

So if we do not want to be succumbed by the economic turmoil, we need to just follow the principles developed by the nature not made by human beings.


posted @ 11:37 PM, ,

Latest Economic Indicators

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posted @ 9:09 AM, ,

Job in Nestle

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posted @ 1:59 PM, ,

Financial and Business Terms - from Boo to Bou

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posted @ 1:24 PM, ,

IMF Concerned About High Inflation

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The International Monetary Fund (IMF) has expressed its shock and concern over no respite in the inflation in Pakistan.Inflation increased by 1.4 per cent in April, just as much in March and one per cent in February percent owing to which the target of single digit inflation which was expected in June is also not likely to be achieved by July.

“Owing to this very reason, IMF has asked Pakistani authorities not to reduce the discount rate in the next monetary policy statement secluded to be announced in July next year,” the official said.

In the Dubai meeting, the IMF officials were curious to know as to why the inflation in the rest of world is on decline, but in case of Pakistan there exists no visible respite on this account.

“On face of it, the credit supply to private sector is at the lowest ebb which is why the economic activities in the country in negative zone,” the official said.

During the February review by the Ministry of Finance, the government expected to bring down the inflation to less then 10 percent in the month of June, but now under the new scenario, the inflation will hardly ease to 13.5 percent.

In fact IMF knowing very well that wheat price is also inflationary but Fund people did not say anything to government when it increased support price of wheat by 60 percent.

The official said that the rise in inflation is basically due to food and fuel inflation as government has increased the wheat, rice prices and did not reduce the POL prices.

Because of this very factor food inflation is on the rise. The bad governance has also 90 percent contributions to the existing inflation and 10 percent responsibility lies with private sector. If the government comes up with some effective administrative measures the inflation can be brought down, the official said.

The official referred to the palm oil prices, which were reduced to $ 400 per ton from $ 1200 per ton, but the prices of edible oil and ghee tumbled in Pakistan only Rs 12 per kg while it should have reduced by Rs 42 per kg. Now the international price of palm oil has slightly increased the prices of edible oil and ghee increased by Rs 2-3 per kg.

The IMF also asked Pakistan to build in the budget for 2009-10, some of the amount from Tokyo pledges amounting to $5.28 billion and in case of any shortfall or delay from of the said amount out of pledges, then Fund will provide the loan against the said shortfall. And in case Pakistan gets the required amount from Tokyo pledges after some delay, then Pakistan will pay back the same loan to Fund with minor interest rate.

The said additional facility is to be of a kind of cushion money that will be strictly conditional to shortfall of Tokyo money.

To a question, he disclosed that Pakistan was reluctant to build in some of the amount out of pledges in budget saying the Tokyo pledges’ materialization in stipulated time is uncertain.

The IMF also advised the economic managers to use the fiscal space of about Rs160 billion to Rs180 billion, that has been created by relaxing in the fiscal deficit target by 1.2 percent to 4.6 percent from 3.4 percent, for social sector development expenditures.

This time the Fund was not in favour of any cut in development budget, rather stressed for slash in current expenditures to achieve the target of 4.6 percent budget deficit target foxed for next fiscal year.

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posted @ 11:06 AM, ,

Please Save Us from great Economic recession

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Pakistan Sugar Mills Association requested Trading Corporation of Pakistan not to waste valuable foreign exchange on extremely expensive imported surgar because sugar from the domestic market have following benefits;

Please save loca sugarcane farmers instead of subsidizing foreign farmers.

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posted @ 9:45 AM, ,

Financial and Business Terms - from Bog to Bon

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posted @ 4:50 PM, ,

Economic and Business Updates - May 04 to 10, 2009

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The banking sector in Pakistan which so far escaped liquidity crisis is facing stagnant deposit growth for the last two months signifying the potential risk behind the scene.

The annual trade between Pakistan and china has sur passed $7 billion during 2008 and will rise to $15 billon by 2011, says Chinese ambassador lou zhaohui

The finance ministry releases Rs 120 billion for the ongoing development project under the public sector development programme during the first nine months of the 2008-9 financial year.

The cabinet approve the benazir tractor scheme to provide 20,000 tractors to farmers at discounted rates aimed at boosting the agriculture sector .

The federal board of revenue collects Rs 898.64 billion as taxes during 10 months of the current fiscal year, against Rs 763.592 billion collected during the corresponding period last year, reflecting an increase of 17.7 per cent .

The cumulative profit listed cement sector companies increase to Rs 3.7 billion in the nine months of fy09 depicting a massive growth of 833 per cent over the in corresponding period on fy 08 when it was Rs 395 million.

The Islamic development bank agrees to provide $100 million to achieve the targets of poverty reduction strategy paper set for health and microfinance sectors.

The revenue target for the current fiscal seems to be an uphill task and could pose a downside risk to the ongoing stabilization programme says ministry of finance in its review of economic situation for july march 2008-2009.

The securities and exchange commission of Pakistan introduces a transparent procedure for closed end scheme to buy back its own certificates.

Pakistan national shipping corporation needs $400 million to acquire at least 10 oil bulk and general cargo vessels.

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posted @ 11:25 AM, ,

Lease Rental of Land

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Query from Ateeq Ahmad:

Does a company can capitalize rental payment against lease of land before the start of commercial production? What is the date of Commercial production? Further, briefly discuss the taxation implications of the said rental payment.


Accounting Aspect:

As per para 14 of IAS-17, characteristic of land is that it normally has an indefinite economic life and lessee normally does not receive substantially all of the risks and rewards incidendtal to ownership, in which case its an Operating Lease.

ICAP's technical committee recomended in its accounting TR-21 that date of commencement of commercial production is the date when the plant is ready for the production of intended products in commercially feasible quantities. The cut off date so established is without regard when the plant actually commences commercial production. Where the construction of an asset is completed in parts and each part is capable of being used while construction continues on the other parts, capitalization of costs for each part should cease as it is completed.

Therefore, all expensed paid before the commencement of commercial production would be capitalized including rental payment to the lessor.

Taxation Aspect:

Witholding tax would be deducted under section 153 of the Income tax Ordinance under execution of other contracts provided any exemption certificate is produced by the lessor.

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posted @ 4:00 PM, ,

Financial and Business Terms - from Bi to Bl

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posted @ 11:13 AM, ,

Job in IMF

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A person having following qualification and experience is required at the IMF Resident Mission in Islamabad for a period of one year initially, with possibility of extension.


posted @ 10:10 AM, ,

Financial and Business Terms - from Beg to Bet

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posted @ 1:00 PM, ,

15,000 Registration for FRM Exam 2009

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GARP is proud to announce today that the Financial Risk Manager (FRM®) program continues to set records by registering 15,483 candidates including me as of the close of the Early Registration period, April 30, 2009.

The importance of risk management and independently qualified risk managers is being recognized the world over. Organizations and enterprises around the globe recognize that the skill possessed by FRM holders allows them to move into leadership positions and proactively work with top management, Boards and advisors to address the unique and unprecedented issues that are the result of the current financial crisis.


posted @ 11:27 AM, ,

Bottled Water in Your Car is Very Dangerous

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On the Ellen show, Sheryl Crow said this is what caused her breast cancer. It has been identified as the most common cause of the high levels of dioxin in breast cancer tissue.

Sheryl Crow's oncologist told her: Women should not drink bottled water that has been left in a car. The heat reacts with the chemicals in the plastic of the bottle which releases dioxin into the water. Dioxin is a toxin increasingly found in breast cancer tissue. So please be careful and do not drink bottled water that has been left in a car. Pass this on to all the women in your life.

This information is the kind we need to know that just might save us! Use a stainless steel canteen or a glass bottle instead of plastic!

This information is also being circulated at Walter Reed Army Medical Center.....

A dioxin chemical causes cancer, especially breast cancer. Dioxins are highly poisonous to the cells of our bodies. Don't freeze your plastic bottles with water in them as this releases dioxins from the plastic. Recently, Edward Fujimoto, Wellness Program Manager at Castle Hospital, was on a TV program to explain this health hazard. He talked about dioxins and how bad they are for us. He said that we should not be heating our food in the microwave using plastic containers.

This especially applies to foods that contain fat. He said that the combination of fat, high heat and plastic releases dioxin into the food and ultimately into the cells of the body.

Instead, he recommends using glass, such as Corning Ware, Pyrex or ceramic containers for heating food. You get the same results, only without the dioxin. So such things as TV dinners, instant ramen and soups, etc., should be removed from the container and heated in something else. Paper isn't bad but you don't know what is in the paper. It's just safer to use tempered glass, Corning Ware, etc. He reminded us that a while ago some of the fast food restaurants moved away from the foam containers to paper. The dioxin problem is one of the reasons.

Also, he pointed out that plastic wrap, such as Saran wrap, is just as dangerous when placed over foods to be cooked in the microwave. As the food is nuked, the high heat causes poisonous toxins to actually melt out of the plastic wrap and drip into the food.

Cover food with a paper towel instead.

Cancer Update from Johns-Hopkins


posted @ 10:37 AM, ,

US Banks Need More Capital

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A “Stress Tests” have been conducted by the US Federal Reserve. According to that following ten major banks are in need of new capital to boost reserves against losses.


posted @ 9:27 AM, ,

Financial and Business Terms - from Bas to Bef

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posted @ 12:07 PM, ,

Witholding Tax Returns of Salary Income

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Query from mszuberi

What is the last date of submission of Salary Tax Monthly Return?
Under the provisions of Income Tax Ordinance, 2001, there are two statements are required to be filed.
  1. Monthly:
  2. Annually:

Monthly Statement:

As per rule 44 (2) of the Income Tax Ordinance, 2001 statement of all witholding taxes deducted under section 148 to 156 B, 231A to 236 (including salary) is required to be filed within 20 days from the end of the month. Form used for the said purpose is available in Part X of IT Rules - Second Schedule.

Annual Statement:

As per rule 44 (1) of the Income Tax Ordinance, 2001 statement of witholding taxes under section 149 - salary is required to be filed within 2 months from the end of the year. Form used for the said purpose is available in Part VIII of IT Rules - Second Schedule.


posted @ 10:27 AM, ,

Pre Budget Seminar

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The ICAP CPD Committee, Lahore is organizing the seminar on titled subject on Tuesday, May 12, 2009 at ICAP Auditorium, ICAP House, Lahore as per following schedule;


posted @ 10:02 AM, ,

Financial and Business Terms - from Ban to Bar

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posted @ 1:49 PM, ,

The Pre-Budget Seminar

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The ICAP CPD Committee Islamabad / Rawalpindi in collaboration with Rawalpindi Islamabad Tax Bar Association (RITBA), has arranged the titled seminar on May 13, 2009, as per the following schedule:


posted @ 11:56 AM, ,

Financial and Business Terms - from Bac to Bal

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posted @ 4:37 PM, ,

Parri Passu Charge

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Query from Shoaib Ashar:

What is meant by Parri Passu Charge?


Parri Passu is derived from Latin for 'with equal progress'. The phrase is used to indicate simultaneous and equal change or to describe similar ranking of securities or lenders; for example, when a new issue of shares is made, they could be said to rank pari passu, ie, equally with existing shares for the purposes of dividend payments. A common agreement between joint lenders is a pari passu clause under which, in the event of a shortfall, they agree to share equally whatever is available.

The use of "Pari Passu" when creating a charge means that when company Y goes into dissolution, the assets over which the charge has been created will be distributed in proportion to the creditors' respective holdings. Therefore, if the Bank X has tendered a loan facility of 60 million PKR while another creditor, say Z, has tendered 40 million PKR, the recovery after selling assets of Company Y to which joint pari passu charge attached, shall be ditributed in the ratio of 6:4 amongst X and Z. Where preferential rights attach to assets of the company, the preferential creditors rank higher in the distribution stakes i.e. they are paid in priority to other creditors of the company

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posted @ 12:21 PM, ,

Financial and Business terms - From Av to Aw

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posted @ 9:00 PM, ,

Economic Indicators

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Pakistan economic indicators as on May 04, 2009 are as follows

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posted @ 10:12 AM, ,

Economic and Business Updates - April 27 to May 03, 2009

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posted @ 12:14 AM, ,

Commercial Banks can make Investment in Commercial Papers

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SBP vide cirular BPD # 28 - 2003 allowed the banks/DFIs to invest in only those CPs:

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posted @ 10:58 AM, ,

Finance Job in Eden Builders

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Eden Builders Limited (Lahore) requires a young energetic person for the post of Manager Finance. Other Particulars of the job are as under:


posted @ 4:59 PM, ,

What Bloggers Do During Power Outage

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During planned and announced electric load shedding (6 to 8 hours) I think of how to adjust with new lifestyle without electricity. (Yes, wiser people always advise and tell that we should try to adopt this new lifestyle). And when it comes unannounced and unplanned, I play snake on my mobile (the only gadget alive during shutdown) and think electric crises will dome the sitting government. People with no solution in sight and no respite from hot and humid weather, and those who still cant afford uninterrupted power supply equipment, and cant go to Europe and or to local hill stations to for summers, may come out and create a law and order situation adding another dimension to existing ciaos. Here I am not talking of those who have to make their living and earn income for them and their families and cant due to power outage. Nor I am talking of loss to industry.

Please share your thought here. What you think and do during planned and or unplanned electric outage.Via


posted @ 9:51 AM, ,

Financial and Business Terms - from At to Au

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posted @ 12:38 PM, ,

Light Within

Blog Roll

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