Nov  25 - Dec 01, 2002   
ISSUE # 47  

With the revival of economy and restoration of investors' confidence, also supported by declining lending rates, the demand for credit by the private sector is increasing. It is evident from large-scale import of plant and machinery. In the absence of other financial institutions capable of providing medium and long-term funds, leasing companies and Modarabas are the only source for resource mobilization. Leasing companies have emerged financially stronger due to their enhanced capital and TFCs flotation. Modarabas are also planning to launch TFCs based on Sharia. They are expected to perform even better in the future.


The decision of the Supreme Court of lifting ban on Valima dinners has not only brought back life and colors to the wedding ceremonies but has helped reviving the infinite number of cottage industries and micro businesses in the society. By putting a ban on serving meals during wedding ceremonies, the government in 1997 had made an effort to bring social reform in the society through administrative means without realizing the devastating effects on the economy.


Home remittances sent by the overseas Pakistanis have almost been tripled to $1.3 billion in the first quarter of the current financial year July-October 2002. This unusual rise in remittances has greatly helped in better management of the foreign currency reserves of the country. Pakistan's foreign exchange reserves are near to $9 billion and likely to cross the mark of $10 billion at the end of the financial year.