The world gears up for 2016 American elections. The suspense is that whether Republicans will be able to take back the White House or Democrats continue. Although, it seems that the Republican Party with Donald Trump and a long list of presidential hopefuls are in deep waters, but the reality is that the Democratic Party does not find itself in a great position either.
Its imperative to expand the tax base. The debate can be on the ways to approach the chronic issue of low tax to GDP ratio. The practice usually adopted across the globe is to strengthen the enforcing agencies with power of strong audit and penalize the non-payers. The threat of being caught should be the main deterrent to evade taxes.
The U.S. Presidential elections are scheduled to be held on November 8, 2016. By July of that year, both the Republicans and Democrats have to announce their respective nominee, for the Presidential race. In-line with tradition, the TV channels of that country, is building the hype. Their screens are already plastered with campaign ads, and very soon, the debates will commence.
Expect a similar kind of switch from PIBs to treasury bills in the banking sectors books, the one that was witnessed last year from t-bills to PIBs. Back then, it was the mouth watering lucrative yields on offer that enticed all and sundry to the long term papers. This time around, it is the slowdown in interest rates and an expectation of a further cut in rates that is keeping investors close to short-term papers.
Countrys security dynamic is making headlines in international media, and after a long time its on the improving situation. Recently, international electronic media has given a couple of optimistic strokes while painting Pakistans outlook.
The unthinkable has happened. The most powerful business lobby of the country, (APTMA) has been reduced to a level that it has to threaten for a strike now. Apparently, their access to the corridors of power is blocked. What is most surprising is that the ‘business friendly” government has targeted the textile industry to raise revenues.
Allied Bank Limited (ABL) is in a pretty decent shape. The after tax profits for 1HCY15 swelled despite the imposition of 4 percent super tax and higher effective taxation. And the strength is driven primarily from the top line. ABL’s stated strategy of optimization of asset mix, improving low cost deposit mix to absorb the regulatory changes in PLS deposit rates and the unfavourable interest rate scenario, are all paying healthy dividends. Rs1.75/share of which was also announced for the shareholders in form of cash.