Financial Risk Manager

Ways of Financial and Risk Management

Want The World’s Best wages? Move To Switzerland

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It pays to work in Switzerland: employees in Zurich and Geneva have the highest net wages in the world, a study by banking group UBS shows, while those in India’s Mumbai take home the lowest.

The Swiss cities were also ranked among the top five most expensive in the world in the bank’s 2009 “Price and Earnings” international study.

“With its extremely high gross wages and comparatively low tax rates, Switzerland is a very employee-friendly country,” the Swiss bank said in a statement. “No other cities allows workers to take home more income at the end of the month than Zurich and Geneva.”

The study, published every three years, compares the income and purchasing power of employees in 73 cities across the globe, highlighting wide discrepancies in wages between different regions, and even within the same country.

The biggest gaps were found in Asia, the study said, with Tokyo ranking as one of the world’s five costliest cities while the capitals of developing countries such as Malaysia, the Philippines and India were all at the bottom of the price range.

Oslo was this year’s most expensive city, based on a standardised basket of 122 goods and services, followed by Zurich, Copenhagen, Geneva, Tokyo and New York.

When rents are factored in, however, New York rises to the top spot, the study said.

This year, the bank said currency fluctations caused by the global economic crisis affected the rankings of several cities, most notably London, which was the second most expensive city in 2006, but which fell nearly 20 places following the pound’s drop earlier this year.

The analysis involved more than 30,000 data points, collected by several independent observers in each city, in March and April, the bank said. All amounts were converted into a single currency before being compared.

The world’s cheapest places to live were Malaysia’s Kuala Lumpur, Manila in the Philippines, and India’s Delhi and Mumbai. But the average employee in many of these cities, as well as Jakarta and Nairobi, gets paid some of the world’s lowest salaries which have between 11 percent and 15 percent of the purchasing power of a salary in Zurich.

“An average wage-earner in Zurich and New York can buy an iPod nano from an Apple store after nine hours of work. At the other end of the spectrum, workers in Mumbai need to work 20 nine-hour days, roughly the equivalent of one month’s salary,” the study said.


posted @ 8:49 PM, ,

Ramadan Economy

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Despite different announcements by the government the prices of commodities keep rising all the time. Unchecked price hike is particularly visible at three occasions; before and during Ramadan, before and after annual budget and in between whenever prices of Petrol go up.

All nation and economies around the world respect their national and religious festive celebrations and reduce prices, announce clearance sales and help every one to make purchases. Pre Christmas sale is one of the best examples. Contrary to this spirit, we face unchecked price increase before and during Ramadan and before sacred occasion of Eid-ul-Fitr. “The present situation indicates that rulers are not consumer friendly as they are backing hoarders, investors, capitalists besides working on the agenda of IMF and WB,” says PRM President Dr Aasim Sajjad, “sugar crisis was witnessed widely and the government pledged to deal with hoarders with iron hands but now situation was out of control” he added.

Market scouting shows that fruits and vegetable prices at the advent of the Holy month of Ramadan went spiraling high by 80/100 percent. More than 25 daily commodities like sugar, rice, pulses, chicken, beef, mutton, vegetables and fruits have shot up in local markets.

Wholesalers and retailers, particularly of fruits and vegetables are enjoying a free hand to fleece the consumers in Holy month despite of all the official claims. The price of Flour is already raised by 5 to 8 Rupees per Kg. Dates are available from 100 Rs to 150 Rs a Kilo while Chicken is being sold at around 240-260 Rs. Besan is regularly used in Ramadan for making Pakoras for Iftar and its price now days is around 58 to 64 Rs a Kilo. Yogurt is being sold at 64 to 68 Rs while a liter of milk costs 45 to 58 Rs (show a discrepancy for fresh and tetra packs). Sugar prices have broken all the previous records and it has been sold at 54 to 64 Rs per Kg. There are reports about shortage of these commodities also. Utility Stores are unable to supply the desired amount of commodities and unavailability of products is causing nuisance. Despite of being honest and helpful at least in Holy month the retailers exploit the needs of public in Ramadan. Even the lower middle class person tries to eat nutritious fruits daily but how can they afford such prices?

The main commodities which showed an increase in their prices in July 2009 over June 2009 include Potatoes (29.33%), tomatoes (28.39%), eggs (20.37%), vegetables (17.32%), mash (14.59%), chicken (9.83%), moong (8.87%), gram whole(6.94%), onions (6.93%), gur (4.91%), masoor (4.48%), gram split (3.25%), fresh fruits (3.08%), food prepared/preserved(3.02%), oil cakes (2.91%), wheat flour (2.50%), tea (2.46%), meat (1.86%), sugar refined (1.72%), wheat (1.69%), rice (1.42%), beans (1.33%) and besan (1.06%). {X-Posted from Light Within}

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posted @ 2:39 PM, ,

ICAP - President's Communication

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Notices under Section 176 of Income Tax Ordinance, 2001

As mentioned in my Communication - 8, notices were issued by the Federal Board of Revenue(FBR) to some of the audit firms under Section 176 of the Income Tax Ordinance, 2001 requiring them to submit working paper files and other information relating to their clients.

The Institute held high level meetings with the Chairman and other senior officials of the FBR to address this matter on priority basis. I am pleased to report that FBR has agreed with our view that it is not appropriate for tax authorities to require audit working papers from audit firms, and FBR haswithdrawn such notices.

Development on ICAEW MoU

Further to my earlier communications on the subject of MoU with ICAEW, I have just received a letter from the President ICAEW informing us of their agreement to provide further exemption in the Business Strategy Paper of Professional Stage to our members. We are continuing our dialogue with the ICAEW for exemption in the remaining two Advance Stage Papers and extending our cooperation in other areas.


posted @ 12:04 PM, ,

Job in Qarshi Industries

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Job Title: Manager Audit and Budget
Industry: Manufacturing
Category: Financial Services
Job Type: Permanent ( firstshift )
Job Location: Lahore
Gender: Male
Age: 30 - 40 Years
Degree Title: CA/ ACMA
Career Level: Manager
Minimum Experience: 5 Years(Minimum 05 years post qualification experience of Audit & Budgets in a renowned FMCG organization in managerial capacity.)
Require Travel: 25%
Apply here by: Nov 25, 2009


posted @ 10:17 AM, ,

Swiss Bank Secrets

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A deal finalized Wednesday between the United States and Switzerland paves the way for a potentially historic disclosure of Swiss bank secrets: the names of thousands of Americans suspected of using secret accounts to hide money from the IRS.

Under the agreement, UBS -- Switzerland's largest bank -- is expected to turn over the names of Americans who controlled 4,450 accounts that are currently open or have been closed.

The secret accounts at one point held as much as $18 billion, the IRS said.

"We will be receiving an unprecedented amount of information," IRS Commissioner Doug Shulman told reporters Wednesday morning.

The settlement follows a long-running effort by the U.S. government to penetrate Swiss bank secrecy and catch tax evaders.

The U.S. government had been seeking a federal court order demanding that UBS identify the holders of 52,000 accounts. The Swiss government vowed to prevent such a disclosure, leading to weeks of negotiations.

Switzerland was fighting to preserve the reputation for privacy that has made its banking industry a global powerhouse and a pillar of the Swiss economy.

The deal includes concessions that might make it easier for Switzerland to argue that its tradition of secrecy survived the battle.

The United States agreed to narrow its request.

More importantly, the United States agreed to drop its federal lawsuit against UBS and pursue the information through a Swiss legal channel under a tax treaty between the two countries.

The U.S. government tried to use that channel last year but got nowhere. Switzerland has agreed to handle the request differently this time.

Switzerland has not explicitly promised to identify the holders of the 4,450 accounts, but the two sides said that is the expected result, suggesting that the new U.S. request is mainly a formality and the outcome is preordained.

Under Swiss law, the affected depositors would have the opportunity to contest the release of their names and account information. But that, too, could be a hollow exercise. Under an interpretation of U.S. law, they might be required to disclose such appeals to the Justice Department, rendering moot any attempt to remain anonymous.

In February, to avoid criminal prosecution, UBS agreed to pay the U.S. government $780 million and admitted that it schemed to defraud the United States by helping Americans hide money from the IRS. At that time, the Swiss provided the names of 200 to 300 American depositors, which shows how much farther Switzerland is moving on the issue.

Some details of the settlement were not disclosed. The criteria the U.S. government used to narrow its request remain under wraps. That leaves UBS depositors guessing as to their personal risk of exposure and keeps them under pressure to seek leniency by turning themselves in to the IRS.

It could also obscure any shift in Switzerland's bank secrecy standards.

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posted @ 2:04 PM, ,

IFRS 2 Share-based Payment

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The objective of this IFRS is to specify the financial reporting by an entity when it undertakes a share-based payment transaction. In particular, it requires an entity to reflect in its profit or loss and financial position the effects of share-based payment transactions, including expenses associated with transactions in which share options are granted to employees.

The IFRS requires an entity to recognise share-based payment transactions in its financial statements, including transactions with employees or other parties to be settled in cash, other assets, or equity instruments of the entity. There are no exceptions to the IFRS, other than for transactions to which other Standards apply.

This also applies to transfers of equity instruments of the entity’s parent, or equity instruments of another entity in the same group as the entity, to parties that have supplied goods or services to the entity.

The IFRS sets out measurement principles and specific requirements for three types of share-based payment transactions:

(a) equity-settled share-based payment transactions, in which the entity receives goods or services as consideration for equity instruments of the entity (including shares or share options);

(b) cash-settled share-based payment transactions, in which the entity acquires goods or services by incurring liabilities to the supplier of those goods or services for amounts that are based on the price (or value) of the entity’s shares or other equity instruments of the entity; and

(c) transactions in which the entity receives or acquires goods or services and the terms of the arrangement provide either the entity or the supplier of those goods or services with a choice of whether the entity settles the transaction in cash or by issuing equity instruments.

For equity-settled share-based payment transactions, the IFRS requires an entity to measure the goods or services received, and the corresponding increase in equity, directly, at the fair value of the goods or services received, unless that fair value cannot be estimated reliably. If the entity cannot estimate reliably the fair value of the goods or services received, the entity is required to measure their value, and the corresponding increase in equity, indirectly, by reference to the fair value of the equity instruments granted. Furthermore:

(a) for transactions with employees and others providing similar services, the entity is required to measure the fair value of the equity instruments granted, because it is typically not possible to estimate reliably the fair value of employee services received. The fair value of the equity instruments granted is measured at grant date.

(b) for transactions with parties other than employees (and those providing similar services), there is a rebuttable presumption that the fair value of the goods or services received can be estimated reliably. That fair value is measured at the date the entity obtains the goods or the counterparty renders service. In rare cases, if the presumption is rebutted, the transaction is measured by reference to the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders service.

(c) for goods or services measured by reference to the fair value of the equity instruments granted, the IFRS specifies that vesting conditions, other than market conditions, are not taken into account when estimating the fair value of the shares or options at the relevant measurement date (as specified above). Instead, vesting conditions are taken into account by adjusting the number of equity instruments included in the measurement of the transaction amount so that, ultimately, the amount recognised for goods or services received as consideration for the equity instruments granted is based on the number of equity instruments that eventually vest. Hence, on a cumulative basis, no amount is recognised for goods or services received if the equity instruments granted do not vest because of failure to satisfy a vesting condition (other than a market condition).

(d) the IFRS requires the fair value of equity instruments granted to be based on market prices, if available, and to take into account the terms and conditions upon which those equity instruments were granted. In the absence of market prices, fair value is estimated, using a valuation technique to estimate what the price of those equity instruments would have been on the measurement date in an arm’s length transaction between knowledgeable, willing parties.

(e) the IFRS also sets out requirements if the terms and conditions of an option or share grant are modified (eg: an option is repriced) or if a grant is cancelled, repurchased or replaced with another grant of equity instruments. For example, irrespective of any modification, cancellation or settlement of a grant of equity
instruments to employees, the IFRS generally requires the entity to recognise, as a minimum, the services received measured at the grant date fair value of the equity instruments granted.

For cash-settled share-based payment transactions, the IFRS requires an entity to measure the goods or services acquired and the liability incurred at the fair value of the liability. Until the liability is settled, the entity is required to remeasure the fair value of the liability at each reporting date and at the date of settlement, with any changes in value recognised in profit or loss for the period.

For share-based payment transactions in which the terms of the arrangement provide either the entity or the supplier of goods or services with a choice of whether the entity settles the transaction in cash or by issuing equity instruments, the entity is required to account for that transaction, or the components of that transaction, as a cash-settled share-based payment transaction if, and to the extent that, the entity has incurred a liability to settle in cash (or other assets), or as an equity-settled share-based payment transaction if, and to the extent that, no such liability has been incurred.

The IFRS prescribes various disclosure requirements to enable users of financial statements to understand:

(a) the nature and extent of share-based payment arrangements that existed during the period;

(b) how the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period was determined; and

(c) the effect of share-based payment transactions on the entity’s profit or loss for the period and on its financial position.

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posted @ 12:24 AM, ,

Maket Share - Urea Production

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Manufacturer----------Urea Capacity-----Capaciy Utilization----Market Share

Fauji Fertilizer Company---1,904,000 MT-------118%----------------------45%
Engro Chemicals Company---850,000 MT-------107%----------------------20%
Fauji Fertilizer Bin Qasim----551,100 MT--------105%----------------------13%
Dawood Hercules Company--445,500 MT--------91%-----------------------11%
Pak American Fertilizer----- 350,000 MT-------100%----------------------08%
Pak Arab Fertilizer Co.------92,400 MT---------124%----------------------02%

TOTAL----------------------4,193,000 MT-------110%------------------100%

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posted @ 8:30 PM, ,

Finance and Internal Audit Jobs

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Sind Rural Support Organization is a fst growing development sector organization. SRSO is looking for a dynamic candidate to fill the vacant posts of Chief Financial Officer (CFO) and Manager Internal Audit.

Chief Financial Officer (CFO)

Qualificatoin: CA / ACMA / MBA / MS(Finance)
Experience: 10 Years
Reports to: CEO

Manager Internla Audit

Qualificatoin: CA / CA-Inter / MBA / MS(Finance)/ ACCA
Experience: 4-5 Years
Reports to: CEO

Interested candidates can apply with confidence by 15th September, 2009 with complete application and CV here.


posted @ 10:11 AM, ,

ICAEW's New Exemption for ICAP Members

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Changes to Credit for Prior Learning for ICAP members:

In June this year, we announced a significant change to our ACA programme for ICAP members.

I am pleased to be able to inform you of a further change to the programme. Following a successful submission by the Institute of Chartered Accountants of Pakistan, ICAP members will no longer be required to sit the ICAEW’s Professional Stage Business Strategy module.

With immediate effect ICAP members can apply for credit from the Business Strategy paper. This applies to existing ACA students as well as those not yet registered.

Action required
Credit for Business Strategy will not be awarded automatically. You will need to apply for credit. As you have already been awarded credit previously you need to send an email to quoting your ICAEW student registration number and requesting that this additional credit is awarded. Applications for credit received from today will automatically be awarded all 12 credits. If in doubt please check your record.

The fee waiver for CPL applications from ICAP members will remain at least until the end of this year.

We are delighted at these recent, positive, changes that recognise our close working relationship with ICAP. We continue to work closely with ICAP in a number of areas; however we do not expect any further changes to the ACA programme for ICAP members in the foreseeable future.

Meanwhile if you have any questions about these changes please do not hesitate to contact Justin West,Senior Business Development Manager, Learning and Professional Development.

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posted @ 5:27 PM, ,

Job in Ghandara Nissan Limited

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Ghandhara Nissan Limited is a public limited company of high repute. It is the only automobile company in Pakistan that produces a complete range of automobiles covering Passenger cars, light and heavy commercial vehicles (truck and buses). Presently we have following openings:



All candidates should also have good interpersonal and communication skills and be computer literate.

Attractive salary package and congenial working environment will be provided. Aspirants meeting the above criteria should send their CV’s latest by August 21, 2009 here.


posted @ 4:03 PM, ,

Highlights of 5 Years National Textile Policy

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1- First-ever 5-year National Textile Policy
2- Export target set at $25 billion
3- Aims at increased production on sustainable basis
4- Rs40.000 Billion (Textile Investment Support Fund) for technology, standardization, value addition
5- Cotton value addition products to double in 5 years
6- Technology Up-gradation Fund to be established
7- Govt to pay 50pc mark-up on new investments
8- Rs.1.000 Billion for infrastructure uplift

Restructuring and reorganisation of the textile sector is on the cards which includes drawback of local taxes refund of past R and D claims and Magnetisation of PTA;

Key initiatives are creation of Textile Investment Support Fund (TISF); Technology Upgradation Fund (TUF); Infrastructure Development; Skill Development; Zero Rating of Exports; Tax free import of machinery and Rationalisation of Tariff structure;

The policy also envisages removing regulatory bottlenecks ie market access; marketing support, export house scheme, marketing insurance scheme and improving Information and communication technology;

The sub-sectors initiatives include Fibers, Ginning, Filament yarn, Shipping, Weaving and Knitting, non-woven, processing, home textiles, garments, fashion and design, technical textiles, handlooms and handicrafts, carpets;

The policy encompasses indigenization, women employment support programme, support for disabled, handicapped.

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posted @ 10:25 AM, ,

MCB Acquires RBS - Some Facts and Figures

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MCB has announced the signing of agreement on following terms and conditions.

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posted @ 9:14 AM, ,

Economic and Business Updates - August 03 to 09, 2009

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posted @ 10:08 AM, ,

Follow Me on Twitter

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Twitter users are a natural fit with each other and the fraternity is fast growing. Simple philosophy is this: "You mention me in your blog and I mention you in mine," and it goes on and on. Twitter users are keen to see what others are saying in their tweets so they keep up with as many as they can, especially those who are like minded. Confession: Well, I am found of seeing what others publish in their tweet that I do not know and who all are following me. I also try to see people who are behind tweets.

Read this at Light Within and follow me here!


posted @ 12:21 PM, ,

Why FRM Certification

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You should consider obtaining your FRM due to some following reasons

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posted @ 8:43 PM, ,

Extinguishing Financial Liabilities with Equity

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IFRIC Draft Interpretation D25 Extinguishing Financial Liabilities with Equity Instruments is published by the International Accounting Standards Board (IASB) for comment only. Comments on the draft Interpretation should be sent in writing so as to be received by 5 October 2009. Respondents are asked to send their comments electronically to the IASB Website ( using the ‘Open to Comments’ page with a copy emailed to


A debtor and creditor may renegotiate the terms of a financial liability with the result that the liability is fully or partially extinguished by the debtor issuing equity instruments to the creditor. These transactions are sometimes referred to as ‘debt for equity swaps’. The IFRIC has received requests for guidance on the accounting for such transactions.


The [draft] Interpretation addresses only the accounting by an entity that renegotiates the terms of a financial liability and issues equity instruments to the creditor to extinguish the liability fully or partially. It does not address the accounting by the creditor.


This [draft] Interpretation addresses the following issues:


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posted @ 12:23 PM, ,

How To Prepare For The FRM Exam

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  1. 5 to 6 months of preparation time: FRM® Exam is a very tough exam, a reasonable estimate to prepare for the exam would be 200 hours for every Level or 400 hrs for Full exam. Depending on an individual's academic background and work experience, preparation for the exam would take approximately 5 to 6 months.

  2. Books to refer: GARPTM suggests that "FRM® Core Readings" and the Phillip Jorian Handbook should be referred for preparing for the Exam. Also one can refer to the Summarised material (Pristine Comprehensive Notes, Scheweser Notes, bionoc turtle etc). Summarised material may reduce your preparation time, but the Core readings & Phillip Jorian should be referred from time to time incase you are unable to solve the questions on a particular topic.

  3. How to allocate time: 70% of the preparation time should be spend on understanding the concepts and reviewing the material. 30% of the time should be spend on practicing last year question papers.

  4. Important Topics: it’s very difficult to say, as they cover almost all the topics , but do not leave the topics given below: VAR( practice all the online questions: last year around 20 questions on VAR) , Current events, Securitization & CDO (last year around 15+ questions), Linear regression, RAROC, Option pricing, Option Greeks, Duration & convexity, Swaps( practice atleast 2 questions), Credit Derivatives, Marginal & Cumulative probability in Credit risk, Expected Loss , Portfolio Variance Calculation, correlation & Covariance, Probability distributions, Skewness & Kurtosis , Normal Distribution ( how to calculate z, and area between two points), hedging with futures ( all the formulas for hedge ratio), Foreign exchange, Clean and Dirty price of bond (solve example), Put Call parity ( solve example),Delta Gamma hedging in options ( solve example), All ratios in portfolio management, Netting in credit risk, Rating migration in Credit Risk( solve example on what is the probability a bond will move from a rating to default status), Merton & KMV model, Credit exposure, Economic Capital, Basel guidelines, Loss distribution Approach in operational Risk, Beta, HFLS and LFHS risks, bottom up & Top down approach.
  5. Pattern of the exam: The exam is a practice – oriented exam , so they will normally test you on your concepts & fundamentals , around 40% questions may be on problem solving , even the theory questions are conceptual and cannot be answered by merely memorizing .

  6. The Calculators: HP or Texas, both are available in the market, the main functions that you have to practice are exponential, log and bond valuation( PV, NPV, FV, 1/Y, PMT, IRR ).

  7. Difficulty of Questions: the questions are designed by existing GARP members, the selection criteria for a question is the level of difficulty . So the questions will be very very difficult, also the time to answer every question is only 2.15 minutes.

  8. Prepare Summary Notes for revision: and practice questions on every topic as you complete the topics.

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posted @ 10:13 AM, ,

Pattern of FRM Exam

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FRM Full Exam is a 5-hour (2 test of 2.5 hours each), 140 multiple choice question examination. The exam is split into two sections of 2.5 hrs each (morning and afternoon session). You have approximately 2.15 minutes per Question. Questions are clubbed together for all categories, i.e.

FRM level I Exam is a 4-hour (2 test of 2 hours each), 100 multiple choice question examination, the exam is split into two sections of 2 hrs each (morning and afternoon session). The Level I syllabus is a subset of Complete FRM® syllabus and covers all tools required for Risk Management. Questions are clubbed together for all categories, i.e.

The exam is a percentile-based exam and top 40 to 45 percentile students pass the exam, based on the weighted average marks for all subjects hence its necessary to pass in all the subjects. There is no negative marking.

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posted @ 10:07 AM, ,

Money Market, Forex and General News - 06-08-2009

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The market was short of liquidity today with majority of the overnight deals in the band of 13.50% p.a.


The USD/PkR parity inched upwards as inflows outpaced outflows from the interbank. The parity strengthened by approximately 50 bps to close at 82.68/72. Yesterday's closing parity was 83.20/25.


In the upcoming Monetary Policy on August 15, 2009, State Bank of Pakistan (SBP) is expected to introduce a new policy rate structure. The new structure would end the single policy rate regime in favor of repo and reverse repo rates. The Policy rate would be for borrowing from SBP by banks while on reverse repo rate banks would supposed to lend to SBP. It would not only improve the liquidity management of banking system but also lower the fluctuation of the interbank market. The differential between the Repo rate and the reverse repo is likely to be of 200-250 basis points.

All eyes on the IMF review tomorrow as outcome may drive the next MPS and fiscal stance thereafter. The sentiments are expected to be dominated by the expectations of better corporate results and policy rate cut.

Source: NBP Treasury

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posted @ 12:40 PM, ,

Types of Financial Risk

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Market Risk:

Risk of declining prices or volatility of prices in the finacial markets will result a loss. There are two types of market risk inculding Absolute Risk and Relative Risk. Withing the market risk following risks are of importance.
- Absolute Risk
- Relative Risk
- Directional Risk (Linear risk exposure)
- Non directional Risk (Non linear risk exposure)
- Basis Risk
- Volatility Risk

Liquidity Risk:

Risk of loss due to inadequate liqudity of position / asset at a fair price. Risks withing the liquidity risk are
- Asset Liquidity Risk
- Funding Liquidity Risk

Credit Risk:

Risk of loss due to dafaul of counterpart in a financial transaction. Important terms and further classess of risks under credit risk are
- Exposure
- Recovery Rate
- Credit Event
- Sovereign Risk
- Settlement Risk

Operational Risk:

Risk of loss due to inadequate monitoring system, management failure, defective controls, frauds and human errors. This risk is particulary relevant to DERIVATIVE TRADING, because derivatives are inherently higly leveraged instrument, which enable tradters to expose a firm to loss using relativly small amount of capital. Following are the classes of operational risk
- Model Risk
- People Risk
- Legal Risk

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posted @ 12:52 PM, ,

Job in Mobilink

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Industry: Telecommunication/ISP
Category: Accounts
Designation: Associate Finance
Total Position: 1
Job Type: Permanent ( firstshift )
Job Location: Islamabad
Gender: Doesn't Matter
Minimum Education Bachelor's Degree
Degree Title: MBA /ICMA/ACCA (Part Qualified) degree
Career Level: Experienced (Non-Manager)
Minimum Experience: 2 Years(Have minimum two years of finance experience)
Apply here by: Aug 12, 2009


posted @ 12:29 PM, ,

Telecom Updates

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posted @ 10:23 AM, ,

Risk and Major Sources of Risk

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Risk is an unexpected variablity of asset prices and earning. There are two major sources of risk;

1. Business Risk:

is the risk that a firm is subjected to during daily operations and includes the risks that result from business decisions and the business environment. Business risk includes Strategic Risk and Macro Economic Risk.

Stretegic risk reflects risks inherent in the decision of senior management setting a business strategy. Macro Economic Risk is inherent with the overall economic condition of the region and it has an impact over firm's operation and sales. One of the examples of business risk is that the economy will slow and demand for a product will fall.

2. Financial Risk:

is the result of a firm's financial market activities. Like interest rate movement after the issuance of floating rate bonds. In this case the issuing firm will be negatively impacted if market reates increase.

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posted @ 9:24 AM, ,

Money Market, Forex and General News 04-08-09

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Money Market opened at 12.50 percent.SBP injected Rs 23.5 billion @ 12.53 percent for four days through Open Market Operation OMO).Market topped at 13.75 percent and closed at 12 percent.


Inter bank opened at 83.35 & 83.40.Market topped at 83.42 while made a bottom at 83.20.Later on rupee gained some ground and closed at 83.28 & 83.30.


Self power generation seems to be only viable solution for industries and consumers as power crisis continued to paralyze business activities through out the country. Pakistan imported power peneration machineries of over $1.7 billion in FY-09 compared with $1.1 billion last year, exerting further pressure on import bill. Power shortage and pilferage and un announced load shedding forced industrialist and exporters to import power machinery which substantially increased cost of production.

World Bank postponed two key loans regarding National Trade Corridor worth 834 million dollars for a year after the government's lethargic and lackluster attitude towards transport sector investment. Two loans of 634.5 million-dollar National Expressway and 200 million-dollar National Trade Corridor Improvement Plan were under active review with the World Bank during 2007-08, which are gradually falling out of sight as the government is showing no progress in these areas.

Source: NBP Treasury

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posted @ 11:32 AM, ,

Money Market, Forex and General News - 03-08-2009

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Money Market opened at 12.50 percent .Market remained tight on Monday as it topped at 13.90 percent and closed at the same level. Six month KIBOR stayed at 12 percent.


Inter bank opened at 83.30 & 83.40.Market surpassed barrier of 83.50 and topped at 83.52 while made a bottom at 83.35.Later on rupee gained some ground and closed at 83.33 & 83.38.


Citigroup would give United States government a thirty four percent stake in the equity as part of federal bailout of the third largest American bank. Government is going to be a major stakeholder of Citi group. Investors have agreed to swap some $32.8 billion of preferred securities for common stock and the government
agreed to swap $25 billion. Citigroup called for the bailouts after suffering massive credit losses and write downs due to financial crisis which sent tremors to Wall Street and toppled Citi from US largest bank to third largest. Government came to rescue Citi and has injected around $45 billion from TARP (Troubled Asset Relief
Program) and agreed to share losses on $300 billion of troubled assets. Citi is further pondering to shed its consumer finance, insurance and toxic assets.

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posted @ 6:22 PM, ,

Best Corporate Reports

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The Evaluation Committee has reconsidered the Eligibility Criteria for Best Corporate Reports (BCR) 2009. The Committee decided that any corporate report which has any matter of emphasis paragraph in its audit report except for the reason of going concern will be eligible to participate in the BCR Awards. The revised eligibility criteria is as follows:


Any corporate report in which the auditors' report has any qualification/ disclaimer of opinion/ adverse opinion or matter of emphasis due to going concern will not be eligible for the competition.

Except for the above change, remaining evaluation criteria of BCR for 2009 which was circulated earlier remains unchanged. The revised Eligibility Criteria is effective for annual reports 2009.

The revised Evaluation Criteria is also available on Institute’s website


posted @ 10:47 PM, ,

Contact Financial Risk Manager

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posted @ 10:43 AM, ,

Job in Mobilink

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Designation: Business Analyst
Industry: Telecommunication/ISP
Category: Business Development
Job Type: Permanent ( firstshift )
Job Location: Lahore
Gender: Doesn't Matter
Minimum Education Bachelor's Degree
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posted @ 11:49 AM, ,

Economic Indicators

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Annual 2008/09

Monthly June

Weekly July 27, 2009

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posted @ 11:36 AM, ,

Money Market, Forex and General News - 31-07-2009

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Money market opened at 11.75 percent. Overnight repo rates topped at 13.90 and closed at 13.25 percent. KIBOR for six month has inched upward in last few days to 11.99 after consistent decline.


Inter bank opened at 83.25 & 83.30.Market touched level of 83.34 reflecting strong demand of US dollar. Market closed at 83.20 & 83.25.

The depreciating Pakistani rupee would be under further pressure shortly, since banks would be obliged to arrange foreign exchange for payments of diesel and other refined products from August 01st 2009 in addition to payment of furnace oil. These products constitute almost fifty percent of oil import bill i.e. around $4-5 billion annually. Therefore banks would arrange some $500 million each month which will surely infuriate demand for US dollar and deteriorate the local currency. Rupee has already hit barrier of “83” in the inter bank market.


IMF, the Washington based lender is considering an increase in loan package to Pakistan which was approved last November to the magnitude of USD 7.1 bn, almost USD 4 bn of which are already disbursed. The statement nevertheless, will have a positive sentiment on the local currency which has been under pressure in the recent times on account of discontinuation of foreign exchange being arranged by the State Bank for petroleum products imports.
Source: NBP Treasury

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posted @ 11:03 AM, ,

Liquidity Management

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In order to ensure prudent liquidity management by banks, it has been decided that henceforth Advances to Deposits Ratio (ADR) of any bank shall not exceed 70% at any time. For this purpose, the terms “Advances” and “Deposits” are defined as follows:


All Loans / Advances (on gross basis) less refinance availed from SBP under Export Refinance and Long Term Financing Facility (LTFF) Schemes and lending to other banks.


All types of deposits including Demand, Savings, and Time Deposits less deposits / placements from other banks.

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posted @ 10:58 AM, ,

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