"Extortion is the biggest deterrent to business in Karachi, even more than the energy crisis" asserted former president Karachi Chamber of Commerce and Industry Anjum Nisar. "Even in Lahore, where businesses are significantly worse off due to energy crisis, extortion and violence targeted against businesses is fast becoming an existential threat for firms" he told BR Research.
A mainstay of Pakistans industry and exports, the textile sector has long been considered the backbone of the entire economy- or so we have always been told. Chock-full of problems including inefficient business models, poor capacity building endeavours and a generally recalcitrant attitude towards accepting newer industry standards, the local textile industry is sitting at the edge of its own grave- one that it has dug with its own hands.
The performance of the packaging giant has been sinking in the operational swamp for quite some time now. Rising cost of energy and prices of imported and local raw material have been chomping away the companys margins, not to mention the one-off unpleasant event that rocked the consumer products division back in the last quarter of CY12.
The 1HCY12 financial results of the top five commercial banks (HBL, NBP, UBL, MCB, ABL) depict Pakistans banking industry is in good financial health. The consolidated profit of the five biggest banks soared by a massive 21 percent year-on-year, despite a dip in net interest income. The surge in profits primarily owes to massive decline in provisioning and surge in non-interest income.
From Pakistans move to grant MFN status to its nuclear rival and neighbour, back in October last year, and promises of striking out items off the negative trade list, to the agreement on the issuing of banking licenses and India allowing Pakistani investment; trade liberalisation efforts by the two countries have been the one good news for the current year.
Marking the half-year milestone with a stellar financial performance, Pak Suzuki is on a high like never before. Keeping abreast with the local automobile industry which signed off on an impressive 22 percent year-on-year growth, PSMC has maintained its position as the leader of the pack, reporting a spectacular bottom line of Rs1.3 billion at the end of 2QFY12.
Depreciation of the local currency worsened the precarious current account situation in the first month of FY13. Data released by the central bank show imports were down in July, compared to last year by 0.73 percent in dollar terms. However the same gap stretched to 8.9 percent in rupee terms.