Ammar Habib Khan, CFA, FRM

Watch HBL’s expert panel discuss the latest Monetary Policy. #HBLMarketInsight #HBL

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🚨 Why Pakistan Govt Should Reevaluate IPP Contracts and Hold Them Accountable 🚨 The current strategy of extending subsidies towards bill payment end-user, [Indirectly] Independent Power Producers (IPPs) is a short-term fix, but it doesn’t address the root issues. Here’s why the government should prioritize reviewing IPP contracts and enforcing accountability: 1. Contractual Discrepancies: A thorough review w.r.t National Interest instead of corporate benefits could uncover discrepancies and ensure that contracts are renegotiated to better serve the public interest. 2. Production Capacity vs. Billing: There are instances where IPPs have charged for capacities they haven’t actually produced. Conducting a detailed audit can reveal these discrepancies and hold IPPs accountable for overcharging or inefficiencies. (uncovered by x-minister) 3. Long-Term Solutions: Subsidies are a band-aid solution that doesn’t address underlying issues. By auditing and revising contracts, the government can implement more sustainable changes, ensuring fair pricing and better energy management. 4. Transparency and Accountability: Opening audits and penalizing IPPs for unjustified charges promotes transparency and integrity within the energy sector. This can restore public trust and create a more equitable system. Addressing these issues head-on will not only help in managing costs but also pave the way for a more transparent and efficient energy sector. The focus should be on long-term reforms rather than temporary relief and move-out. #EnergyReform #Accountability #PakistanEnergy #Transparency

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Pakistani banks are shifting away from relying on large corporate deposits by imposing penalties and discouraging deposit growth. Historically, banks prioritized financing big corporates and investing excess funds in high-return government instruments, leaving the public and SMEs with minimal benefits. However, with declining interest rates and regulatory taxes on low Advance-to-Deposit Ratios (ADR), banks are now compelled to innovate. This includes exploring new financing avenues such as supply chain financing, SME lending, marketplace partnerships, and collaborations with fintechs, NBFCs, and DFIs. The goal is to redirect funds into productive economic activities, fostering inclusivity, innovation, and sustainable growth. Read full article by clicking here: https://lnkd.in/dgxrzYTq #PakistaniBanks #SMEFinancing #bigdeposites #deposites #banksinpakistan #SupplyChainFinancing #ADR #SBP #FintechIntegration #EconomicGrowth #BankingInnovation #FinancialInclusion #islamicbanking #islamicfunance #fintech Dr. Muhammad Imran Ashraf Usmani Usmani & Co Private Limited Greens Fintech Innovation Ltd DIFC UAE IMarkPlace Hira Foundation School Hira Institute of Emerging Sciences - HIES CIE- Centre For Islamic Economics #meezanbank

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Watch HBL’s expert panel discuss the latest Monetary Policy #HBLMarketInsight #HBL

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The Securities and Exchange Commission of Pakistan (SECP) is a regulatory body created to encourage the growth of a structured corporate sector, along with robust insurance and non-banking financial companies (NBFCs) and capital markets. SECP has recently given the opportunity to individual investors to directly engage and also invest in Government Debt Securities (GDS), including Sukku. Finance Minister Muhammad Aurangzeb visited the SECP Headquarters, there he was notified of several GDS options which were Treasury Bills, Pakistan Investment Bonds, Ijarah Sukku, and other debt instruments that were issued. He applauded the efforts made by SECP and he highlighted the need to boost liquidity in the secondary market. Further, SECP’s Chairman informed the Finance Minister about the initiatives that include digitalising services, advanced technology and improved access of finance. Finance Minister Muhammad Aurangzeb highlighted the significance of creating awareness about SECP’S initiatives to expand stakeholder benefits. In addition, he encouraged partnering with the government for effective implementation of pension reforms and coordination with regulators to strengthen Pakistan’s financial ecosystem. #DigitalPakistan #TechUpdate

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Policy Research & Advisory Council - PRAC was featured on PTV NEWS. PRAC's Head of Research Dr. Usama Ehsan Khan, PhD, FMVA®, CFA LII and Research Associate Ms. Uzma Aftab shared their views on the recent policy rate cut by the State Bank of Pakistan (SBP), highlighting its implications for economic stability and private sector growth #economicgrowth #monetarypolicy

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IFC - International Finance Corporation has approved debt financing of up to $400 million for Pakistan Telecommunication Company Limited (PTCL.Official) to acquire Telenor Pakistan. This seven-year financing deal, with a one-year grace period, aims to conclude by July 31, 2024, as shared by #PTCL. PTCL President and Group CEO, Hatem Bamatraf, expressed enthusiasm about the milestone, highlighting the potential for enhanced service delivery to a broader customer base once the acquisition is finalized and regulatory approvals are obtained. The financing arrangement includes a consortium led by #IFC, along with the Silk Road Fund (SRF) and British International Investment (BII). The loan will be disbursed in quarterly installments starting from the second anniversary of the loan, following the completion of conditions specified in the financing agreements. This acquisition is expected to bolster PTCL's market position and drive #growth and innovation in Pakistan's telecom and #digital sectors. #DigitalPakistan #TechUpdate

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Fitch Ratings predicts Pakistan's FY25 budget, which will significantly reduce government debt to 68% of GDP by FY24's end. The reduction is due to high inflation and deflator effects, offsetting rising domestic interest costs. With a policy rate cut by the State Bank of Pakistan and a projected inflation rate of 12% for FY25, the budget aims for a 5.9% deficit and 2.0% primary surplus. Despite targeting 3.6% growth, Fitch predicts 3.0% growth due to potential revenue shortfalls and higher current spending. Source: https://bitly.cx/64d9 hashtag #PSX hashtag #NewsandUpdates hashtag #PakistanBudget hashtag #FitchRatings hashtag #EconomicOutlook

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Interested in which sectors will thrive or struggle in today's economy? Join Raza Jafri, CFA, CEO of EFG Hermes Pakistan, as he identifies the sectors set to outperform and those likely to underperform. Discover these crucial insights now! Watch here: https://lnkd.in/dVcigg-Z

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🎥 Collaboration for Climate Solutions Across Industries In this insightful video, Riaz Chunara, CEO of National Institute of Banking and Finance (NIBAF)-Pakistan, shares his thoughts on the importance of bringing together stakeholders from diverse industries to address climate challenges. He emphasized how collaboration and understanding each other’s problems are essential to developing holistic solutions that benefit all sectors. Mr.Riaz also highlighted NIBAF’s commitment to supporting these efforts by providing capacity-building and training initiatives to drive meaningful progress. Thank you, Riaz, for your leadership and for contributing to this critical dialogue at the High-Level Climate Finance Forum. #LetsTalkSolutions #ClimateFinance #Collaboration #CapacityBuilding #ClimateAction #Pakistan

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My take on 'Global Climate Finance Landscape & its Fragmentation' at the validation workshop of Pakistan's Climate Finance Strategy!!!

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Why did the State Bank of Pakistan decide not to cut interest rates? Mustafa O. Pasha, CFA, CIO of Lakson Investments, delves into the rationale behind this crucial decision and its impact on the economy. Watch the full interview here: https://lnkd.in/dGtq3KFs

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Pakistan's Economic History: Phase Two - The Ayub Era (1958-69) During Gen Ayub Khan's rule, Pakistan's economy underwent significant transformations. Here are the key highlights: - Aid-Driven Growth: Pakistan's economy heavily relied on foreign aid and investment from Washington. GDP is claimed to remain in the region of 6.5% - 7% during this era. - Industrial Development: This period saw notable industrial growth, but it came with strict control over labor movements. The Industrial Dispute Ordinance of 1959 aimed to limit workers' rights to strike. - Agricultural Advancements: The Indus Water Treaty with India in 1960 enabled Pakistan to undertake massive infrastructure projects, such as the Mangla Dam. This led to increased agricultural production, contributing to economic growth. - Failed Agricultural Reforms: Despite advancements, agricultural reforms failed to bring about long-term results due to inequitable land ownership and inadequate improvements in market distribution. - Infrastructure Development: Islamabad was established as the new capital city, and the Pakistan Industrial Credit and Investment Corporation (PICIC) was set up to promote industrial growth. - Concentration of Wealth: Unfortunately, this period also saw a significant concentration of wealth, with 22 families controlling 66% of industrial wealth and 87% of banking and insurance. - Planning Commission: Although the Planning Commission was effective in designing policies, their implementation was often ad-hoc and bureaucratic, ignoring public mandate. - Trade Imbalance: East Pakistan had a trade surplus, while West Pakistan had a deficit. - Establishment of PICIC: The Pakistan Industrial Credit and Investment Corporation (PICIC) was established to promote industrial growth. - Emergence of Financial Diseases: This period saw the birth of two major financial diseases: "commission on purchase of machinery effectively on government account" and "write-off of bad debts" by influential lenders. - One Unit System: The One Unit system was introduced, with its head office in Lahore. - Control of Bureaucracy: The bureaucracy had complete control over economic policy decisions, ignoring public mandate. These factors shaped Pakistan's economic trajectory during the Ayub era and continue to influence its growth and development to this day. Acknowledgement The facts and figures presented in this article are largely extracted from the book "Pakistan: Not a Failed State" by Mr. Shabbar Zaidi, a renowned economist and former Chairman of the Federal Board of Revenue (FBR). We appreciate his meticulous research and insightful analysis, which have greatly contributed to our understanding of Pakistan's economic history. #PakistanEconomicHistory #EconomicDevelopment #PakistanHistory #PakistanNotAFailedState #ShabbarZaidi #AyubEra #EconomicGrowth #IndustrialDevelopment #AgriculturalReforms #FinancialDiseases

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As Pakistan's renewable energy ambitions hit a roadblock with sovereign guarantees maxing out at PKR 3.75 trillion by December 2023, the country finds itself at the fiscal limits set by the Responsibility and Debt Limitation Act 2005.    With the International Monetary Fund underscoring the need to cap government guarantees, our forthcoming study examines pioneering financing alternatives – vital for propelling a sustainable energy transition while upholding fiscal discipline and mitigating debt risks.   Brace yourself for an insightful exploration of cutting-edge solutions that could catalyze Pakistan's renewable energy drive within a prudent financial landscape. Don't miss our upcoming report, unveiling an innovative financing roadmap for Pakistan's renewable revolution! Stay tuned for our upcoming report to find out! Register for the event here: https://lnkd.in/dqXhijBV #RenewableEnergy #PakistanEconomy #SovereignGuarantees #FinancialInnovation #REFinance #GreenFinance Ahtasam Ahmad | Muhammad Basit Ghauri

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Based on the auction results of Pakistan Investment Bonds (PIBs) and the government's borrowing patterns, it's clear that there's a cautious approach to borrowing at high rates. The government's modest borrowing suggests a reluctance to accumulate debt aggressively. The upcoming Treasury bills auction will provide further insight into investor sentiment and expectations for the monetary policy announcement. With inflation easing but remaining high, and uncertainties surrounding global commodity prices and geopolitical tensions, the State Bank of Pakistan (SBP) faces a delicate balance in considering a rate cut. The decision may hinge on the evolving economic conditions and whether the SBP chooses to prioritize inflation management or economic stimulus. https://lnkd.in/eBhcCFm7

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