world nations have tested and experienced various economic systems that included
capitalism, socialism and communism. Each has its own merits and demerits and
with the passage of time they are busy in carving a system with certain basic
points. These include: 1) the government should not be in the business of
managing business but play the role of facilitator and regulators, 2) in certain
sectors/industries there is a need for public-private partnership mainly because
of huge capital requirements and 3) due to strategic nature control of some of
the industries must remain with the government........
PAGE TOP STORIES
& PAGE SPECIAL REPORTS
WILL GET MOMENTUM AFTER OVERCOMING POLITICAL DEADLOCK
INTERVIEW WITH MR
BARKATULLAH LONE, AN ANALYS
The private sector is
a major driver of economic growth. In a mixed economy like
Pakistan, private sector is the key determinant of the
country’s economy. Investment/divestment by the private sector
will directly affect the employment ratio and revenue to the
government. Many developing countries are not fully benefiting
from the opportunities that can be generated by a robust
private sector. Developing countries often have weak domestic
private sectors, and do not have sufficient tools and policies
in place to encourage private-sector-led economic growth. The
potential benefits of private financial flows are not being
maximized to contribute to economic and social development
PRIVATIZATION WILL REDUCE FISCAL DEFICITS,
ENHANCE CASH FLOWS
INTERVIEW WITH MR
SHAHID GUL MOTIWALA, CEO AL AMEEN FUNDS
The investment scenario in
Pakistan is very attractive as the country offers immense
potential due to its large and young population, burgeoning
middle class, growing foreign remittance and untapped sectors
in the economy such as agriculture and corporate farming,
mining and services sector offering attractive investment
opportunities to investors. However, the desired level of
investments have not made its way in the economy due to two
major reasons -- security situation and energy crises in the
country. The government needs to create the climate for
investors to do business and provide basic infrastructure for
private entrepreneurs to take advantage of these immense
opportunities waiting for them...........
MOL Group, the
leading international Oil and Gas Company is launching a new
E&P talent acquisition and development program for students
and graduates in the fields of geoscience and petroleum
engineering. Students at selected universities in 14 countries
ranging from Pakistan, UK and Central Europe to the Middle
East can apply via the UPPP online simulation game from 1st to
23rd October 2014.
The top three teams
will then get the opportunity to join MOL Group and start
their careers through the 18-month "UPPP Technical
Placement Program". Top three teams at the competition will
win a total of €20,000 prize.......
MALALA YOUSAFZAI THE PRIDE OF PAKISTAN
PRESTIGIOUS NOBEL PEACE PRIZE FOR 2014
the youngest-ever recipient of the globally prestigious Nobel Peace Prize has
won international reckoning for her courageous struggle for the cause of peace
and education in Pakistan.
Her reason and judgment show her great potential of making a difference whenever
she may practically enter into political arena with her resolved to spread light
of education especially amongst the oppressed female folk in the country.
success deserves acknowledgement with the presence of top leadership
from Pakistan in the award distribution ceremony to be held in December this
CHINESE PARTICIPATION IN MEGA ECONOMIC
The banking scenario
in Pakistan, which is certainly the most vibrant segment of
Pakistan economy is likely to witness an important development
with the arrival of Bank of China with the focus to provide
banking facility to the mega economic projects in the energy
sector as well as development of economic corridor from Gwadar
to Shahrae Resham.
Governor/Deputy Governor of State Bank of Pakistan (SBP) Mr.
Saeed Ahmad in a meeting welcoming the Chief Executive
Officer, Ms. Li Tong of Bank of China International (BoCI).
BoCI is a wholly-owned subsidiary of Bank of China. Currently
visiting Pakistan, she said "closer cooperation in the banking
sector will assist in strengthening relationship further with
China. Number of mega projects which huge Chinese companies
are implementing in Pakistan necessitates smooth and efficient
banking arrangements to meet the banking needs", this was the
core message conveyed by the BoCI, which is the
investment-banking unit of BoC.......
KASB BANK OFFERS A WIDE RANGE OF PRODUCTS,
SERVICES IN VARIOUS SEGMENTS
AN INTERVIEW WITH BILAL MUSTAFA, PRESIDENT & CEO OF KASB BANK
KASB Bank offers a wide range of products and
services to facilitate its customers in various segments such
as high return investment plans, business accounts, saving
accounts, agriculture financing, and Home remittance services.
KASB Bank also offers technology based innovative products and
services to keep its customers abreast with rapid changing
banking environment throughout the globe.
include, state-of-the-art Mobile Banking solution, VISA Debit
cards, online banking, Internet banking and ATMs installed at
strategically located KASB Bank branches to ensure customers
have access to their funds round-the-clock.......
MAERSK SUPPLY SERVICE
EXPANDS ITS NEW BUILDING PLAN
Maersk Supply Service
has entered into contract with COSCO (Dalian) shipyard for
building four Subsea Support Vessels with options for two
All the vessels are
of MARIN TEKNIKK design. Maersk Supply Service already has one
Subsea Supply Vessel and two Anchor Handling Tug Supply
vessels on order from shipyards in Romania and in Chile.
"With this new order in China, we have taken
the next step in our extensive new building
TO SELL FAMILY SILVER?
Since beginning of
privatization process, the successive governments have successfully sold out a
large number of public sector entities and also divested government holdings but
a question often arises, why the government is selling its stake in profit
making entities and still holding loss making entities? There will always be
buyers for good performing entities, which are also a major source of income for
the government. Top of the list entities should be those which swallow nearly
half a trillion rupees every year. Experts are of the opinion that these
entities should be sold on ‘as is where is’. The basis of valuation should be
replacement value because the worth of landholding of these entities runs into
billions of rupees.........
GOING THE EXTRA MILE
Since Intel spawned
the microprocessor revolution over 40 years ago, computing has
come to affect nearly every element of life, and today we’re
seeing it deliver significant changes to all sides of the
world of sport.
Like most companies,
sports clubs are facing a data explosion – caused by the
increasing use of sensors, video feeds, and a variety of
sources – providing unprecedented levels of insight into
athlete performance, which is being used to enhance sporting
capabilities and team personnel...........
Oil & Gas Development Company Limited (OGDCL)
is the domestic market leader in terms of reserves, acreage and oil & gas
production. OGDCL is well organized to deliver upstream growth and improved
profit margins boosting shareholders wealth while sharing to the wellbeing of
the communities where it runs. The company is listed on all stock exchanges of
the country as well as on the London Stock Exchange. Financial year 2014 showed
as the landmark in the history of the company with its PAT (profit after
taxation) rising by 35.8 percent and touching a fresh record level of Rs123.915
billion translating into EPS of Rs28.81......
SCOPE OF PRIVATIZATION PROCESS LOOKS DEPRESSING
macroeconomic and law and order situation are essential for creating a
climate conducive for private investment. At the same time, competition,
liberalization and deregulation are required for protecting the interests
of consumers and for sending the right price signals to customers and
investors. However, in infrastructure and utility services, competition
may not be feasible. In such cases, a fair and comprehensive regulatory
framework must exist to balance the needs of consumers and investors.
International Airlines (PIA) incurring a loss of Rs100 million
daily. This loss is largely due to ageing fleet, cash
shortage, and devaluation in Pak rupee, high fuel prices, and
heavy loans resulting in high financial cost, frequent changes
in management and a higher number of employees. The national
flag carrier, however, had faced losses of billion of rupees
due to mismanagement and inaction.
The government has
given a package of Rs12.70 billion to the PIA for its
INDIA IN THE NEWS
CHENNAI: Chinese lighting solutions
company Opple Lighting has entered the Indian LED lighting market with the
launch of its first retail store in Chennai. The Rs 3,000-crore company has a
presence in over 50 countries and provides lighting solutions for both retail
and commercial users.
Opple plans to invest about Rs 60 crore for its India operations, primarily for
brand building and marketing. The company plans to set up 50 exclusive brand
outlets and about 400 shop-in-shop stores over the next three years,.
IN THE NEWS
The Pakistan National Monument is one of the rare recreational places which are
still attracting the visitors from all over the country despite the fact of
increasing inflation, day-to-day hardships and prevailing political situation of
the federal capital due to the sit-ins.The monument, spread over a total area of
2.8 hectares, is located at the west viewpoint of the Shakarparian Hills,
represents the four provinces and three territories. The blooming flower shape
shows Pakistan’s progress as a rapidly developing country.......
Dubai: The UAE IT
market, valued at Dh15.75 billion in 2013, is forecast to grow
at a compound annual growth rate of about 8.47 per cent until
2018, a research report published by the Dubai Chamber of
Commerce and Industry says. In the UAE, which ranks fourth out
148 countries in technology absorption, about 85 per cent of
households have a personal computer. The widespread use of the
Internet in homes and offices in the UAE has led to increased
demand for computer products.....
In response to growing market demand,
the Chartered Institute of Management Accountants (CIMA) – the world’s largest
professional body of management accountants – has launched a new qualification
for shared services employers at The Hackett Group’s 2014 European Best
Practices Conference, Berlin.
The qualification develops the skills and broader knowledge of shared services
centre professionals, to help employers attract, develop and retain talent.
Candidates undertaking the training will gain knowledge of shared service best
practices, including principles, tools and techniques, along with effective
governance and controls.........
PRIVATIZATION A BAD EXPERIENCE IN BALOCHISTAN
It is not the
business of the government to do business by it’s own but to
play a role of facilitator and conductor to boost both local
and private businesses in the country. The privatization of
state-owned enterprises endorses this logic. The privatization
process, however, has not been a good experience in
Balochistan. In some experts’ opinion the rewards from
privatization do not seem to be big enough to compensate for
all the associated socio-political risks for pursuing the
In June of this year,
the foreign direct investment fell drastically over the past 6
years with economists seeing a weak forecast for future
investments in Pakistan due to the increased security issues
the country is being facing. The investments coming into the
country come in the form of Greenfield investment. According
to economists, due to the recent security concerns, foreign
investors feel hesitant to either freeze or continue their
investments in the country........
PROTECTING THE STAKEHOLDERS
The stated objectives of privatization are: 1) contain losses being incurred by
the state-owned enterprises, 2) confining the government’s role to facilitator,
3) remove inefficiencies of public sector, 4) optimization of cost of doing
business, 5) improving competitiveness and above all 6) brining down tariff in
case of utilities and sale price in case on tangible goods. The process of
privatization was initiated in Pakistan on the insistence of multilateral
donors. However, if one reviews the outcome, limited achievements have been
Pakistan Steel Mills (PSM) has a high
admiration for the country as it is not only largest industrial complex in
Pakistan but as well as in South Asia. Since it’s founding in 1970, it has been
known as the state-owned megacorporation producing steel and iron foundries with
a production capacity of 1.1 to 5.0 million tons. It has also given direct
employment to thousands of citizens and hundreds of thousands more have been
able to achieve careers in its ancillary and downstream units..........
Women would be
disproportionately affected by the privatization of social
security. It is one of the most important safety nets for
American women in old age, or in times of disability, to
insure financial income for their families.
First, we will focus on the privatization of small and medium
sized enterprises, followed by the medium size industry and
then we will move on to the heavy industry.
Privatization of the state-owned economy is not yet on the
agenda. We cannot do it immediately; my colleagues would not
agree to it. But we must put all forms of ownership on an
equal footing immediately and let different types of ownership
compete with the state firms.
The Social Security trust fund is in pretty good shape today
and we should not embark upon risky, dangerous schemes which
will, in fact, undermine Social Security, such as
During the 1990s the United States sought to impose the
'Washington Consensus' on Latin American governments. It
embodied what Latin Americans call 'neo-liberal' principles:
budget cuts, privatization, deregulation of business, and
incentives for foreign companies. This campaign sparked bitter
resistance and ultimately collapsed.
PRIVATIZATION OF PSM IS NEED OF HOUR
Pakistan Steel Mills
was constructed in early 70's with a cost of Rs25 to 30
billion with the help of USSR former Russia. The actual value
of the land now, excluding steel mill plant, which is the main
asset, the steel mill officer colony and remaining vacant land
may be about Rs300 billion. If we include the plant of steel
mill and the officers’ colony it would be around Rs350 to
Rs375 billion. With the passing of time the cost of overall
Pakistan Steel Mills will be highly increased.
Since its inception
Pakistan Steel Mills witnessed a poor financial performance.
It has remained mostly in losses since it started full-fledged
production in the mid-1980s.
From 1969, when work started on the
mills under the guidance of then chairman Syed Saeed
Jafferi, till 2013, it has seen 26 different managements
taking up the reins.
Except for three,
none of them could exploit the Pakistan Steel Mills preeminent position in the
CURRENCY CONVERTER (Open Market)
THIS WEEK TOP STORIES
WHT ON IMPORTED USED CARS
According to media reports, Pakistan
Petroleum Limited (PPL) has announced that it hit another petroleum reserve,
fourth discovery in the particular lease located in Sanghar district of Sindh
province. The exploration well, Kinza X-1 was spud on July 28 this year and
reached the final depth of 3,695 meters on September 13. Initial testing flowed
12 million cubic feet per day (mmcfd) of gas along with condensate, thereby
confirming presence of commercial quantities. PPL is the operator of Gambat
South block with 65 percent working interest along with its joint venture
partners Government Holdings.........