Financial Risk Manager

Ways of Financial and Risk Management

Steps To Generate Additional Revenue Finalized

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The government on Saturday finalised taxation measures including imposition of 10 percent income tax surcharge and 1.5 percent flood disaster duty on imports to generate additional revenue to meet the urgent needs of flood affected people, sources told Business Recorder. They said a special meeting in this regard was convened at the Ministry of Finance to discuss and finalise these measures.

The 10 percent income tax surcharge would be applicable on already deducted tax and withholding tax withheld at different stages. The import surcharge would be imposed in the form of additional duty on wide range of non-essential and luxury items under Pakistan Customs Tariff.

The meeting also deliberated upon available options - issuance of presidential ordinance or approval from the Parliament - for imposition of reformed GST from October 1. They said it is not required to take approval from the Parliament as far as revised expenditures are concerned and the Ministry of Finance has the power to approve them.

They said the Ministry of Finance takes additional expenditure, if required during the year, and submits demands for supplementary grants before the Parliament for its approval along with next fiscal year budget. However, the Cabinet and parliamentary committees on finance are regularly informed about additional expenditure during the on-going fiscal year.

As far as additional revenue generation is concerned, they said some would be generated through issuance of SROs and some promulgation of presidential ordinance or approval of the Cabinet. They said that imposition of 10 percent income tax surcharge would not require promulgation of presidential ordinance as this would be done simply by issuance of Income Tax Statutory Regulation Order (SRO) with the approval of the Finance Ministry.

The 10 percent income tax surcharge is estimated to generate additional revenue of around Rs 55 billion. According to sources, it is expected that the government may issue ordinance for imposition of 1.5 percent flood disaster duty on non-essential imports. The duty is estimated to generate additional revenue of Rs 11 billion for the flood affected population of the country.

The proposed presidential ordinances regarding imposition of reformed GST and 1.5 percent flood disaster duty may be placed before the next session of the National Assembly from where these would be referred to the parliamentary committees of finance to obtain formal approval. The meeting was of the view that presidential ordinance was the appropriate option owing to time factor following commitment with the International Monetary Fund (IMF) to impose the reformed GST from October 1. Presidential ordinance may be issued soon after the prorogation of the current session of the National Assembly on October 8.


posted @ 10:51 AM, ,

Unique Fragrance

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When we describe others, we almost always comment on how they smell. Have you ever referred to someone as “smelling like an old lady” or “wearing old lady perfume“? Sure, we all have. Not that the smell is unpleasant, but it’s dated. Or, worse yet, have you ever made a judgment about a person based not on how they looked, but on what type of fragrance they were wearing? For instance, have you ever seen someone who looks good but is wearing “cheap” or “drugstore” cologne? Did this cause him to lose some credibility in your eyes? Since our first impressions matter so much, it’s a good idea to know what the top selling fragrances and colognes are so that you not only smell good, but will make a great first impression.

So, if you’re slightly out of style, it’s probably okay, but when you smell out of style, it can be a disaster. When you know what the popular scents are, people are less likely to take notice of your bad fashion habits. So, what are the top sellers when it comes to fragrances?

Have a look at neatly laid of site which are offering unique fragrances and unusual cologne. Their strange cologne and unique stocking stuffer perfumes collection is always changing, so stop back again for the best cologne prices online.

posted @ 1:41 PM, ,

USA Finance - Taming The Banks

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The public's urge for revenge may not have been sated, but the new Basel rules make sense

TWO years ago the collapse of Lehman Brothers heralded a frightening period for the world economy. As one bank after another toppled, or came close to doing so, regulators worried that cashpoint machines would fail to operate and that companies would be unable to meet their payrolls. A second Great Depression seemed to beckon.

Extraordinary efforts were made to bail out the banks, including state guarantees, partial nationalisations, near-zero interest rates and massive fiscal deficits. The public seethed at the banks' profligacy. Surely finance would be reformed, as it was in the 1930s when America created a new regulator, the Securities and Exchange Commission, and separated casino-like investment banking from retail banking?

Two years on, the landscape of finance has altered somewhat. Take hedge funds: the crisis wiped out around a quarter of their assets and forced many mediocre ones out of business. Many private clients left in disgust when they found that these self-proclaimed superstars could lose money; the client base is increasingly dominated by institutions, which should insist on more transparency and better risk management. In private equity, the poor performance of the 2006-07 vintage of deals is making it harder for firms to raise money; one manager, Candover, is giving up the ghost.

But it is the banks that matter most; and, in banking, it is remarkable how little has changed. Many banks are still "too big to fail" and the casino side of their activities remains mixed up with the mundane business of deposit-taking. Bankers are once more earning huge bonuses. How could this be?

Breaking up the banks might have satisfied taxpayers' desire for revenge, but it is not clear what problems it would have solved. Anglo Irish Bank and Northern Rock collapsed not because they were too big, nor because they were playing the markets: they were classic "narrow" banks which failed in the traditional fashion--borrowing short to lend long against property that turned out to be overvalued. The problems of the Spanish cajas show that a financial system with lots of small banks is not necessarily safer.

Still, the crisis made it painfully clear that the world's banking system needed new international rules to impose lending discipline and guard against any temptation to migrate to the weakest regulatory regime. A new set, known as Basel 3, has been proposed (see "Financial regulation: Basel's buttress"). They will not satisfy radicals, but they will probably do the job.

The purpose of the new rules is to ensure that banks have more capital when they face the next crisis, and are thus better able to cope with bad debts. The core Tier 1 ratio will rise to 7%, slightly less than expected but still a lot better than before the crisis (at the end of 2007, Royal Bank of Scotland had a ratio of just 3.5%).

The timing is more questionable. The new requirements are being phased in slowly, under pressure from those countries, such as Germany, which escaped the worst of the crisis. The final deadline is not till 2019. Regulators reckon the rules are fairly tough but critics think this deadline is excessively generous. The fact that bank shares rose in response to the Basel announcement will add to cynics' suspicions that the banks have been given too much time.

For the moment, the system does not look dangerously undercapitalised. Most large, internationally active banks in America, Britain and Switzerland already meet the new requirements. As for other banks that don't, imposing higher capital ratios on them immediately might only discourage them from lending money to businesses, at a time when credit is already scarce.

More, please

The rules are sensible, so far as they go, but more needs to be done. In particular, it is vital that regulators deal with the "outliers", banks that lose more than average in a crisis. The best way to do that is to create a layer of debt that regulators can write off, or convert into equity, if necessary. National regulators should also firm up the rules on counter-cyclical capital, requiring banks to strengthen their balance-sheets during booms, rather than busts; this would help prevent a credit spree like that in 2005-06, and provide the banks with a cushion during a downturn. Extra rules may be needed for firms in the "too big to fail" category. And some banks need to reduce further their reliance on short-term borrowing.

These reforms will not turn the masters of the universe into model citizens overnight. Bankers circumvented the last lot of Basel rules, and regulators will have to watch out for attempts to do the same this time around. But higher capital requirements should eventually reduce the riskiness of banks, cut into their profit margins and constrain bonuses. The punishment may not seem commensurate to the crisis they caused; but reducing risk is more important than getting revenge.

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posted @ 1:39 PM, ,

Camping World

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Travelling had been on my mind for almost all my life, particularly ever since I did a course in Rock Repelling and trekked some softer mountains. I have never climbed K 2 or Nanga Parbat -- icons of climbing, as identifiable and as famous as the Mount Everest but I have been pretty close to them, at the distance that seemed nearly close enough to touch their summits. In different capacities, I had lived some of my life in the base camps of these majestic mountains; with mountaineers, explorers and adventurers from all over the world.

Also I have spent good part of my life camping during my army tenure with my sleeping bag on my shoulders using everything from out flies to 180 ponders. I can say with experience that living under canvas is one of the most thrilling outdoor activities. Those who are interested in outdoor life and camping must start at Camping World – a place that offers wide range of rvs for sale and outdoor equipments including Sleeping Bags camping tents, accessories, outdoor clothing, footwear and more.

Explore the neatly laid out site and see what they are offering and how. What is more, they are offering new and used rvs and motor homes. Also see their rvs rentalss sections. Try them and enjoy camping life.

posted @ 1:26 PM, ,

Economic and Business Review - From 13th to 19th September, 2010

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• The United Nations appeals for a record two billion dollars in emergency aid for the millions of victims of Pakistan’s devastating floods. • FOREIGN direct investment becomes rare for Pakistan as there is a steep fall of inflows in the first two months of the current fiscal year.

• The Sindh government makes 50 per cent cut in its Annual Development Plan for 2010-11 and asks departments to submit revised programmes for projects sanctioned for this year.

• The European Union foreign ministers promise to allow quick, increased – and time-limited – market access to Pakistan’s textile exports in response to Islamabad’s repeated appeals for help to rebuild its textile industry following the recent floods.

• The government revises its estimates for current year’s rate of inflation to up to 14 per cent from the budget target of 9.5 per cent owing to a number of factors, particularly the rising food prices as a result of devastations by floods.

• Despite massive devastation by floods, the country’s exports may register around six per cent increase to $20 billion in the financial year 2011, as most of the fundamental pillars of the country’s economy have been saved.

• The International Monetary Fund board approves a $450 million emergency assistance for flood recovery efforts in Pakistan.

• Just with 10 days to go before the deadline, the authorities are still not clear if the reformed general sales tax on services can be introduced on October 1, as proclaimed in the federal budget and promised to the International Monetary Fund.

• The United States suspends talks on bilateral investment treaty with Pakistan, saying it plans to change its template, says a senior official of the commerce ministry.

• The federal government granting guarantees asks the State Bank to enhance the overdraft limits of provinces to 86 per cent to meet their current expenditures, in case of non-availability of funds.

• The country’s refinery production declines by 28 per cent in August 2010 as compared to that of previous month mainly due to production stoppage at Parco after the flood devastated the transportation network in the surrounding region.

• Pakistan Railways is going to increase fares by 15 per cent as the government approves the demand of the institution which is facing huge financial crunch.

• The Kenyan government restricts import of rice from Pakistan by stopping clearance of consignments at the custom’s stage.

• The Sindh government strongly protests over the centre’s decision to shelve Rs490.48 million Thar coal gasification project and decides to take up the matter with the President and the Prime Minister.

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posted @ 1:08 PM, ,

Should I Get This Car On Rent or I Have To Leased It Out?

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posted @ 3:13 PM, ,

SMS Services

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In the time of increasing interaction between human and machines, more than anything technologies are bringing sweeping changes to how people communicate and share information. Just as email, instant messaging, forums and Weblogs are distributing information on the Internet; mobile phone text messaging, also known as SMS, short for Short Messaging Service, has become one of favorite mediums for anyone with mobile phone.

Seamlessly, SMS has become one of the mainstream trends and an integral part of mobile lifestyle. Have a look at article and see how they are offering mobile text, keywords, IM, email and social publishing all at one place especially Free SMS services from

is a free article directory and its main aim is to help authors promote and syndicate their content, content in this sense of course meaning articles. They allow authors and promoters to get their articles out on the web with the potential of being read by millions and since 2004. They have continued to grow as one of the main Free Content websites on the Internet today. They now have a loyal author base of over 200,000 active authors and more than a million pages of content.

posted @ 2:36 PM, ,

FBR Broadening Tax Base By 29 Percent

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The Federal Board of Revenue (FBR) has succeeded in broadening the tax base by 29 percent, just in one year, by mopping up new companies, associations of persons (AOPs), individuals, salaried persons and employers. There has been an increase of 29 percent in the existing tax base during the period under review, reflecting extraordinary performance of the FBR in discovering new taxpayers.

As compared to previous fiscal year the increase in number of new companies, AOPs, individuals and salaried persons, who filed returns/statements has been unprecedented this year as a result of more practicable enforcement strategy of the department. Every year, the government fixes target of achieving 20 percent for broadening the tax base.

However, 29 percent increase in the tax base showed successful implementation of the enforcement plan, monitoring policy and voluntarily compliance by new taxpayers.

Documentation of property transactions and enforcement of returns filing by the business suppliers had also helped the tax department to amassed 29 percent growth in the tax base. The FBR has also witnessed substantial increase in the number of statements filed by employers and return filing by non-salaried individuals during this period.

The FBR latest data showed that the FBR had received 2.31 million returns and statements during period from July 1, 2009 to June 30, 2010 as compared to 1.79 million returns in the corresponding period of previous fiscal year, reflecting an increase of 0.516 million. The data clearly reflected that the 0.516 million new taxpayers had been discovered during the period.

According to sources, the FBR has been able to bring 0.516 million new taxpayers into the tax net due to proper monitoring and enforcement in the field formations. The policy measures vis-à-vis direct taxes also played an important role to encourage voluntary compliance.

The FBR data further showed that it had discovered over 21,099 companies cases during the period under review, reflecting improved compliance by the corporate sector. A total of 46,657 AOPs had responded to FBR's awareness campaign to enforce filing of returns during July 1, 2009 to June 30, 2010 as compared to 27,649 return filers in the same period of previous fiscal year. This showed that 19,008 new AOPs had been brought into the tax net during the said period. Over 21,099 taxpayers, falling within the category of individuals, filed returns during the period under review.

Similar trend had been observed in the salaried class where the number of return filers by the salaried individuals showed sudden jump during this period. The data showed that 197,743 salaried persons filed returns during the period under review. Within the category of non-salaried individuals, 639,233 persons filed returns as compared to 548,790 returns filed by non-salaried taxpayers. The statements filed by the employers after deduction of tax from the salaried persons stood at over and above 1.3 million as compared to 0.9 million, the FBR data said.

Sharing some of the factors responsible for increase in the number of taxpayers, sources said that the extended date in filing of returns, massive awareness campaign and effective enforcement strategy to ensure filing of returns by potential taxpayers helped the department to broaden the tax base

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posted @ 8:57 PM, ,


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Water supplies have become an essential part of contemporary urban life. This is one of the modern conveniences. Of the many kinds of repairs and maintenances required at homes, plumbing tend to intimidate people the most. Problem is that most residents cannot handle the troubles themselves. Plumbing seems confusing as leaking water is scary. Most people do not know that doing certain jobs like tightening a basin screw can be easy and safe, provided basic safety precautions are followed. Many homeowners cannot tackle minor plumbing problems, like dripping faucets and clogged drains what to talk of repairing leaky water-supply lines or fixing those messy plumbing problems in kitchens and bathrooms.

Have a look at information rich site and see what all they are offering and how can they make life a lot easier.There must be a licensed plumbing company with both residential and commercial experience. All of their plumbing techs have a minimum of 5 years of working experience. They have earned a good reputation by being honest and reliable and what is more, they are committed to giving the best customer service possible while being competitive with our pricing. They also advise you about how to engage the best plumber for a job. Try them.

posted @ 8:15 PM, ,

All - Round Decline In Currency

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All-round decline was seen on the currency market on Tuesday as a result of higher demand for the US dollars, dealers said. All the markets reopened after a 4-day closure, including banks, so the rupee was able to retain its outgoing week level versus dollar and euro, losing modestly in both interbank and open market, analysts said.

INTERBANK MARKET RATES: The rupee shed five paisa in terms of the greenback for buying and selling at 85.75 and 85.80, they said. In the first Asian trade euro surged as positive market sentiment following upbeat Chinese data and a lack of surprises from new banking rules tripped automatic buy orders and sent it 1 percent higher against dollar. The yuan closed up after hitting a post-revaluation high against dollar, with the United States stepping up pressure on China to let the yuan rise as Treasury Secretary Timothy Geithner said he was not satisfied with the progress of yuan reform. Indian rupee was trading at Rs 46.47 and Malaysian ringgit was available at 3.1000 in terms of the US currency.

In the second Asian trade euro surged as positive market sentiment following upbeat Chinese data and a lack of surprises from new banking rules tripped automatic buy orders and sent it 1 percent higher against the dollar. The upbeat economic numbers out of China also propelled the Australian dollar to its highest in four months against the greenback as share markets around Asia rose on positive risk sentiment and the low-yielding yen retreated.

Interbank buy/sell rates for taka against dollar on Tuesday:. 69.5825/69.6000 (previous 69.58/69.59) Call Money Rates: 4.50-9.50 percent (previous 4.50-9.50 percent).

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posted @ 8:09 PM, ,

Online TV

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Internet television allows the users to choose the program or the TV show they want to watch from an archive of programs or from a channel directory. The two forms of viewing Internet television are streaming the content directly to a media player or simply downloading the program to the user's computer. With the "TV on Demand" market growing, these on-demand websites or applications are a must have for major television broadcasters.

Spreety is a free guide to watch TV shows online, online movies, news, sports, and more. The core focus of Spreety is on high production quality U.S.A. TV online that is presented with a positive Internet experience. Spreety links to ABC for ABC shows, CBS for CBS shows, etc., for the highest quality, legal experience. While Spreety is free, some of the links are marked to indicate pay-for services. For most, Spreety is a useful way to catch a missed TV episode or revisit an old favorite. For some, Spreety may replace the DVR and cable TV.

As a television guide for Online TV, Spreety provides easy to navigate links to the highest quality, legal entertainment choices, including popular online TV shows, classic TV shows, music videos, news, online sports, and movies online.

posted @ 4:44 PM, ,

Corporate DB Plans Get 'Wake-up Call' On Risk

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Struggling financial markets worldwide are giving companies with defined benefit pension plans a "wake-up call" on minimizing global investment risk, according to a Mercer survey that showed 77% of companies plan changes to better manage that risk.

Of 114 companies surveyed between October 2009 and January 2010, 16% of multinational organizations said they believe their governance structures are sufficient for meeting anticipated needs, but 30% are planning changes to their reporting structures.

"For many multinational organizations, the financial crisis in major markets and the impact on benefit programs were unanticipated, and they paid insufficient attention to risk-management activities, such as scenario planning and extreme-event modeling," Vicki Stokoe, global governance consulting leader at Mercer, said in a news release. "To make matters worse, companies lacking ready access to key information or without an established decision-making structure struggled to respond quickly and effectively."

"Most organizations focus on plan design and funding decisions, but few devote the same attention to investment policy and monitoring," Ms. Stokoe said in the release.

posted @ 4:02 PM, ,

Dining Room Chairs

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Personally speaking, I like the good quality furniture at home, particularly in my bedroom, dining room and at my work station. The qualities of furniture I use have an effect on my moods and attitudes. Like most users I keep searching for quality furniture when I need to buy. Good thing is that there are so many sites offering furniture online. This time I came upon such site that offers solid wood eco furnishings.

I personally like Dining Room Chairs set that is a brand new 5 pieces dining table and parson chairs set. The table is designed with great finish with wood top. Matching parson chairs are made of hardwoods with micro fiber fabric. This simple and stylish dining table set will complement the most sophisticated to casual décor. That gave me an idea to use go for eco friendly furnishing and play my role in conserving the mother earth. I am sure that small things add up and make a big difference. Visit the neatly laid out site and see what they are offering and how?

For sophisticated dining, Spacify has scouted the world to offer the best in modern dining room furniture. Simple details with precision manufacturing are some of the features for the contemporary dining collection.

posted @ 3:37 PM, ,

Economic and Business Review -Last Week till 05 September 2010

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• The GDP will decline to 2.5 per cent from the projected 4.5 per cent for the current fiscal year 2010-11 as a result of damages to various sectors of the economy due to floods. 

• The non-performing loans are likely to cross Rs500 billion marks by the end of current fiscal year in the wake of flash floods that have wiped out trade and business in affected areas across the country, say bankers. 

• The World Bank increases funding to help Pakistan cope with the catastrophic flooding by $100 million, to a total of one billion dollars, the WB says in a statement. 

• The United Nations Food and Agriculture Organisation announce that it has completed procurement of seeds for the coming Rabi season for distribution among 200,000 flood-affected farming families. 

• The government decides in principle to impose a two per cent flood tax on all imports to generate about Rs50 billion in additional revenues for undertaking reconstruction and rehabilitation projects. 

• The multi billion dollar Reko Diq project in Balochistan may be further delayed due to scarcity of funds and misunderstanding between the federal and the provincial governments over the funding percentage issue. 

• Turkmenistan, which failed to submit third-party certification of Dauletabad gas field reserves, has now offered a new supply source, Osman/Yolatan gas field, which raise serious concern in Pakistan. 

• The government increases HSD and kerosene prices while prices of petrol and HOBC are slashed in line with the revision in global oil prices effective September 1. 

• The consolidated budget deficit of the federal and provincial governments mounted to 6.3 per cent for last year – July-June 2009-10 – against 5.1 per cent of GDP committed with the International Monetary Fund. 

• The Federal Board of Revenue will be forced to revise downward the sales tax collection target in the second quarter (October –December) of 2010-11, in case the reformed general sales tax is not implemented from October 1, 2010. 

• The Trading Corporation of Pakistan establishes two Letters of Credit worth $243 million for import of 320,000 tons of white refined sugar. 

• The Cabinet Committee on Restructuring decides to wind up Pakistan Electric Power Company by October 31. 

• The Federal Board of Revenue collects nearly Rs87 billion up to August 30 as compared to Rs73.7 billion collected in the corresponding period last fiscal year, reflecting an increase of 18.1 per cent. 

• The government announces Rs1,800 per 40kg procurement price for canola and sunflower and sets a target of one million acres for sowing the two crops in the floodaffected areas. Estimated benefit to growers: Rs3bn.

posted @ 12:33 PM, ,

Online Business Cards

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It is always important to promote our business in all economic or business conditions. Extensive promotion is especially important during challenging economic times and you have news to announce or you simply hunger for business growth.

There are many factors to be taken into consideration when ordering business cards online. It helps to know a little about the terminology you will encounter when placing your card order. There is wide variation among websites as to what is offered standard and what is offered as options. Common types of print marketing include custom business cards, brochure, post cards, and posters. It does not mean though that just because you need a printed marketing material for your business you print just about any material you want. You still need to create materials that best fit your business image.

These materials will be a good opportunity not just to promote your business, but to have fun, think outside the box, and produce works of art as well. After all, giving your customers a piece of intriguing art will keep them reminded of you. Have a look at the site and see what are they offering and how are they helping you to design and print your online business cards quickly. Their professional online tool allows you to be in the designer's drafting chair, and craft a stunning business card.

posted @ 12:27 PM, ,

Animal economics

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If flood comes, where should the animals go? Read the story here.

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posted @ 2:19 PM, ,


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My Eid greetings to all of you. But where is the joy of Eid?


posted @ 4:52 PM, ,

Light Within

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