February 9, 2009

Brace yourself for the coming banking collapse-By Shahid Javed Burki

WHEN I raised the possibility that a banking crisis could happen a couple of years ago I was told that the banking system was healthy.

 

This conversation took place when the former Governor of the State Bank of Pakistan visited Washington and addressed the Woodrow Wilson Center for International Scholars. I was told that the regulators working in the State Bank were watching the banking system carefully. My worry then had much to do with my experience handling financial crises in Latin America when I was in charge of the region at the World Bank.Read More »Brace yourself for the coming banking collapse-By Shahid Javed Burki

How greed ruins academia in Pakistan

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By Pervez Hoodbhoy

 

PAKISTAN’S university system is breaking down, perhaps irreparably so. Thanks to the Higher Education Commission’s grand plans for a massive change, a tidal wave of money hit our public universities during the Musharraf years.

Although difficult financial times finally stemmed the flood, this enormous cash infusion served to amplify problems rather than improve teaching and research quality.
Read More »How greed ruins academia in Pakistan

Pak. Economy: Cautious monetary policy in an uncertain environment

Almost 550 basis points have been already added to the discount rate in a 
period of 18 months. The rationale on the basis of which these points were added were there, although, with lower intensity, but the tolerance level of the 
economy was not such which can afford another addition to the current discount rate

The most optimistic expectation of the Monetary Policy Statement (MPS) issued in the end of January 2009 was keeping the discount rate unchanged at its current level of 15 per cent. Almost 550 basis points have been already added to the discount rate in a period of 18 months.Read More »Pak. Economy: Cautious monetary policy in an uncertain environment

SBP’s corrective measures to streamline the economy

Recently, the State Bank of Pakistan has taken many integrated measures to strengthen the domestic banking industry. The central bank has allowed the banks to use 30 percent of the Forced Sale Value (FSV) of stocks and mortgaged commercial and residential properties.  Due to alarming ratios of non performing loans the recent measures of the SBP was needed. It has multiplier effects. It would increase the overall profitability ratios of the banks.  In the long run, it may also discourage banks not to make heavy investments in the equity markets for maximization of profits. The central bank after consulting the technical committee of Institute of Chartered Accountants decided to fix the valuation date as 31.12.2008 but left it to auditor and the bank to decide the issue as per international accounting guidelines. Read More »SBP’s corrective measures to streamline the economy

Basant fever engulfs Karachiites

basantfeverBy Fasahat Mohiuddin
Karachi
As Basant lurks around the corner, Karachiites gear up to celebrate this much-awaited festival in the second week of February.
http://www.thenews.com.pk/daily_detail.asp?id=161538

There are several kite flying clubs in Karachi; the Jubilee Club, Nisar Club and Saheen Club to name a few. These clubs play host to several tournaments each year. Moreover, kite flying is also practiced at the Super Highway, Clifton and New Karachi.Read More »Basant fever engulfs Karachiites

Regular use of aspirin helps fight against stomach cancer

Taking aspirin regularly could cut the risk of developing cancer of the middle or lower stomach by nearly 40 per cent, researchers reported.

New research based on 17 studies of a total of more than 300,000 people aged 50 to 71 found taking the drug weekly or daily reduces the likelihood of stomach cancer by 36 per cent, the British Medical Journal reported. Read More »Regular use of aspirin helps fight against stomach cancer