Last update: Fri, 30 Sep 2016 01am

BR Research: All


Better late than never! After recognising policy failures of the past, the World Bank has finally lent its ears to what behavioural economists have long been arguing: human beings are not rational or egoistic; nor are they more or less identical. The central point of the banks World Development Report 2015 revolves around the notion that "policy design that takes into account psychological and cultural factors will achieve development goals faster."
Pakistan and global country indices are no friends, it seems. Every few weeks a global index stares the country in its face, reminding it of its lingering inadequacies. One would think a well-functioning and deregulated telecom sector would look good on Pakistans ICT rankings. But year after year, ICT indices continue to be unkind to Pakistan. Now there is one more knocking on the door.
How times change! Just a few months ago equity funds were sitting out of shape with losses even greater than the broader market. Redemption pressures were at peak as burgeoning equity losses compelled investors to stay in cash. The size of equity funds had dropped by more than Rs7 billion in a single month during August 2014.
Inflation approaching its lowest ebb is probably the best news for an economy in a recovery stage. Consumer price index in November slid to its lowest yearly increase ever since the rebasing a few years ago. The consensus estimate for CPI was around 4.2 - 4.3 percent for November, but the actual number is even better, at 3.93 percent with five months average at 6.4 percent.
Imran Khans call to shut the entire country on December 16, after shutting down three major cities in a phased manner has got mixed responses - from being termed as grave to idiculous. But what is certain is that this call is a sign of desperation of the highest degree. A call from a party, which appears to be fast running out of options - a call which some term a saving grace to get back to the dialogue table.
Wondering how the thrashing crude oil prices will affect renewable energy like wind and solar? Historically, the renewable has had a link with the crude oil prices, and lower fossil fuel prices have keeled over renewable energy resources. This was because the early stages of wind and solar power came with massive government subsidies to both the producer and the consumer to get them started, resulting in heavy pricing.
In a much expected move the rates on National Savings Schemes were reduced sharply yesterday. Rates of Defence Savings Certificates were lowered by 167 basis points, whereas that on special savings certificates were reduced by 200 percentage points on average across different tenors. The story of rates on Bahbood Saving certificates was no different, having been decreased by about 132 basis points.