Financial Risk Manager

Ways of Financial and Risk Management

Financial and Business Terms - from An to Ap

Bookmark and Share


posted @ 3:13 PM, ,

Don't copy if you can't paste..

Bookmark and Share

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...


posted @ 12:38 PM, ,

Jobs in Pizza Hut

Bookmark and Share

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


posted @ 10:37 AM, ,

Economic and Business Updates - April 20 to 26, 2009

Bookmark and Share

Source: Daily paper "Dawn" dated 27-04-2009

Labels: ,

posted @ 3:07 PM, ,

Jobs in Mobilink

Bookmark and Share

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;

Find the nature and details of all fresh openings visit mobilinkgsm.


posted @ 10:25 AM, ,

Seminar On ISQC – 1

Bookmark and Share

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.

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


posted @ 4:05 PM, ,

Highlights of Monetary Policy April-June 2009

Bookmark and Share

Labels: ,

posted @ 10:06 AM, ,

Financial and Business Terms - from Al to Am

Bookmark and Share


posted @ 11:03 AM, ,

Revision in Long Term Financing Facility - LTFF

Bookmark and Share

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;

Labels: ,

posted @ 1:52 PM, ,

Main Roles of Audit Committee

Bookmark and Share

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:


posted @ 9:35 AM, ,

History of Discount Rate

Bookmark and Share

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;

Labels: ,

posted @ 11:46 AM, ,

Main Features of new Monetary Policy

Bookmark and Share

The State Bank of Pakistan issued its monetary policy for the second quarter April-June,2009. Main features of the policy are;


posted @ 10:01 AM, ,

Management of the Pakistan Economy - GROWTH, TRADE AND DEVELOPMENT

Bookmark and Share

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}


posted @ 8:54 PM, ,

Does the name matter?

Bookmark and Share

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?


posted @ 1:28 PM, ,

Managerial Positions

Bookmark and Share

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:

General Manager Accounts:

General Manager Internal Audit:

Manager Review and Compliance:

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


posted @ 10:33 AM, ,

Forex reserves rise to $11.22 bln

Bookmark and Share

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......


posted @ 3:05 PM, ,

European Central Bank ready to cut interest rates

Bookmark and Share

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."


posted @ 10:47 AM, ,

Economic Over View of Syria

Bookmark and Share

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;

Labels: ,

posted @ 3:52 PM, ,

Financial and Business Terms - from Ad to Ag

Bookmark and Share


posted @ 12:26 PM, ,

Minimum capital requirement of Banks / DFIs

Bookmark and Share

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)

  1. Rs 6.00 billion upto 31.12.2009
  2. Rs 7.00 billion upto 31.12.2010
  3. Rs 8.00 billion upto 31.12.2011
  4. Rs 9.00 billion upto 31.12.2012
  5. 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:

  1. FBs operating with upto 5 branches are required to raise their assigned capital to Rs. 3 billion latest by 31st December 2010.
  2. 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

Labels: ,

posted @ 9:31 AM, ,

Financial and Business Terms - from A to Ac

Bookmark and Share


posted @ 1:48 PM, ,

Tax History

Bookmark and Share

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.


posted @ 12:09 PM, ,

Highest profit in fertilizer sector

Bookmark and Share

Following are the list of fertilizer companies which earn profit after tax for the year ended 31st December, 2008.

  1. Pak Arab Fertilizer --------Rs.7,160.290 Million
  2. Fauji Fertilizer -------------Rs.6,525.080 Million
  3. Engro Chemicals ----------Rs.4,240.430 Million
  4. Dawood Hercules ----------Rs.3,062.690 Million
  5. 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: ,

posted @ 10:08 AM, ,

10 ways to help audit committees

Bookmark and Share

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
  1. Understand what your charter means and the role internal audit plays in helping you meet your audit committee responsibilities.
  2. Compare the audit committee and internal audit charters side by side, then assess gaps and improve alignment.

Team-building and Competency

  1. Improve the caliber of the chief audit executive (CAE), and help develop the overall quality and stature of internal audit.
  2. Determine if the internal audit budget is sufficient in light of higher standards for internal controls and good governance.


  1. Understand internal audit risk assessments and offer input into the internal audit planning process.
  2. Insist on prioritization of audit issues, along with relevant and timely reporting.
  3. Ensure management accountability and followup of issues identified by internal audit.

Monitoring and Moving Toward Best Practices

  1. Expect internal audit to provide ongoing updates and identify new risks going forward.
  2. Call on internal audit’s help with enterprise risk management and strategic audits (e.g., corporate governance audit).
  3. Sponsor the quality assurance review (QAR) of internal audit and push for continuous improvement.


posted @ 10:56 AM, ,

HBL or MCB, which one will acquire RBS

Bookmark and Share

Habib Bank Limited (HBL) has written a letter to KSE dated 13-04-2009. Salient features of the letter are;

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.


posted @ 12:57 PM, ,

Sales Tax - hotels / restaurants

Bookmark and Share

The Federal Board of Revenue has launched a campaign to collect due sales tax from hotels / restaurants sector.


posted @ 9:12 AM, ,

Job in United Bank Limited

Bookmark and Share

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.


posted @ 2:11 AM, ,

Company and dates of board meetings

Bookmark and Share

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


posted @ 12:59 AM, ,

Social Side of Economic Recession

Bookmark and Share

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.

Guest Post from Dolls' Village


posted @ 2:56 PM, ,

Job in bank

Bookmark and Share

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!


posted @ 2:18 AM, ,

Recession Updates - Part 2

Bookmark and Share

  1. The only "deposits" being made on a Ferrari are the ones made by birds flying over them.
  2. Q: What's the difference between an investment banker and a large pizza? A: A large pizza can feed a family of four.
  3. Q: What's the difference between a bond and a bond trader?A. A bond matures.
  4. Q: Did you hear Goldman Sachs has a new cafeteria?A. It's called the Warren buffet.
  5. Q: What's the Capital of Iceland ?A: About 70 cents.
  6. 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."
  7. 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.
  8. 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!"


posted @ 12:45 AM, ,

Recession Updates - Part 1

Bookmark and Share

  1. Ali Baba and the forty thieves are now Ali Baba and the thirty thieves.Ten were laid off
  2. 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
  3. Iron man now "air-pooling" with Superman to save fuel costs.
  4. Women finally marrying for love, and not money
  5. Q: With the current market turmoil, what's the easiest way to make a small fortune?A: Start off with a large one.
  6. 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.
  7. 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.
  8. Q: What's the difference between an American and a Zimbabwean?A: In a few weeks, nothing.
  9. Dow Jones is re-branded as "Down Jones".
  10. Quote from a wall street banker: This is worse than divorce. Ive lost half of my assets and I still have my wife?


posted @ 11:37 PM, ,

Traditional Economy

Bookmark and Share

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.

Cross Posted from Light Within


posted @ 10:14 PM, ,

Dispose of assets and Write off asset

Bookmark and Share

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 . . .


posted @ 1:45 AM, ,

Islamic Banking and Finance

Bookmark and Share

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.


posted @ 12:43 PM, ,

Group Term Insurance Scheme

Bookmark and Share

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.


  1. 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).
  2. 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.
  3. 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).
  4. 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.
  5. 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).


posted @ 12:30 AM, ,

Corporate Compliance Insight

Bookmark and Share

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

Bookmark and Share

Engro foods limited (FMCG) is looking for MANAGER ACCOUNTS at Karachi. Details are as follows;

Job Description:
The candidate should be able to:

Skills Required:

To see how to apply for the said job click here!


posted @ 12:15 PM, ,

Export Refinance Facility

Bookmark and Share

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: ,

posted @ 11:39 AM, ,

May her soul rests in eternal peace

Bookmark and Share

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.


posted @ 10:50 AM, ,

Process of availing Murabaha Finance

Bookmark and Share

Query from maria qurashi:

What is the process of obtaining Murabaha Finance from Islamic Bank?


Following process flow has been developed for purchase of raw materials including Cotton, Yarn, Polyester Fiber, and Viscose:

Labels: ,

posted @ 2:13 PM, ,

World Banks ranks Pakistan first in corporate governance

Bookmark and Share

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: ,

posted @ 1:03 PM, ,

Finance Job in Bank

Bookmark and Share

SME Bank invites applications from experienced commerical bankers for following senior management positions:
  1. Chief Financial Officer
  2. 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.


posted @ 10:12 AM, ,

Top 25 Companies for 2007

Bookmark and Share

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:
  1. Unilever Pakistan Foods Limited,
  2. Siemens (Pakistan) Engineering,
  3. Unilever Pakistan Limited,
  4. Rafhan Maize Products,
  5. Fauji Fertiliser Company Limited,
  6. Pakistan Cables Limited,
  7. Arif Habib Limited,
  8. Al Ghazi Tractors Limited,
  9. International Industries Limited,
  10. Dawood Hercules Chemicals Limited,
  11. Engro Chemical Pakistan Limited,
  12. Clariant Pakistan Limited,
  13. Arif Habib Securities Limited,
  14. Lakson Tobacco Company Limited,
  15. Colgate Palmolive (Pakistan) Limited,
  16. Attock Petroleum Limited,
  17. Pakistan Petroleum Limited,
  18. Ferozsons Laboratories Limited,
  19. EFU Life Assurance Limited,
  20. Securities Papers Limited,
  21. Pakistan Tobacco Company Limited,
  22. Oil and Gas Development Company Limited,
  23. MCB Bank Limited,
  24. Indus Motor Company Limited and
  25. Nestle Pakistan Limited.

Labels: ,

posted @ 4:43 PM, ,

Delivery of goods outside Pakistan‏ - Accounting and Tax Treatment

Bookmark and Share

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.


posted @ 2:55 PM, ,

London - Cynosure of G20 or whole world

Bookmark and Share

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;

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.


posted @ 9:58 AM, ,

Light Within

Blog Roll

ss_blog_claim=eebcdd26d5c32d5838ede03f68f01f91 ss_blog_claim=eebcdd26d5c32d5838ede03f68f01f91