Friday 6 July 2012
Tuesday 6 March 2012
PNSC sell-off planned
PNSC sell-off planned
The government plans to privatise the Pakistan National Shipping Corporation (PNSC) and as a first step it has decided to withdraw first right of refusal given to the corporation for the haulage of public sector cargoes.
Sources in the ministry of shipping confided that the PNSC which had suffered huge losses in the past lately started making profits, but the same plunged to Rs57million last year.
Sources said that it had been decided, in principal, that prior to full privatisation, the PNSC would be made to compete with foreign and domestic shipping lines on a level-playing field which means that no government subsidies or reservation on public sector cargoes would be allowed.
The state-owned PNSC presently enjoys monopoly like advantages regarding shipping reservation for the haulage of public sector cargoes which is around 12 to 15 percentofthe totalsea trade of the country.
The first right of refusal to the PNSC was viewed as necessary to ensure services are available to the government in extreme cases where national security may be at stake.
The PNSC presently has afleet of nine vessels, which include five bulk carriers mv Kaghan, mv Chitral, mv Malakand, mv Hyderabad and mv Sibi. Besides there are three tankers MT Quetta, MT Lahore and MT Karachi and one combie vessel, mv Islamabad.
However, lately there had been realisation amongst policy-makers that the role of private sector in providing shipping services for government trade was equally vital.
Therefore, it has been felt that the PNSC be initially asked to compete on an even basis with all competitors for providing transport and freight services to government cargo.
Deputy chairman of Planning Commission Dr Nadeem-ul-Haque last month chaired a meeting in the Planning Commission to discuss the draft of the National Transport Policy and the implementation status of the cabinet-approved Trucking Policy (logistic policy).
The cabinet has already approved draft of both the policies but it would only be implemented after peer review by expert committee of 13 members which also includes two former directorsgeneral of Ports and Shipping Capt Anwar Shah and Shahid Aziz Siddiqui.
SBP, SECP working on corporate debt market
SBP, SECP working on corporate debt market
3/6/2012
State Bank Governor Yaseen Anwar said on Monday that a joint task force of SBP and Securities and Exchange Commission of Pakistan (SECP) had been set up to draft a framework for establishing a vibrant corporate debt market.
Delivering his key-note address at a conference on `Long-Term Debt Financing Issues and Challenges for Pakistan`, organised by the Institute of Business Management (IoBM), he outlined the tasks of this joint task force.
`I believe that we need to develop an alternative avenue of intermediation: corporate debt market.
These markets will allow the channelling of funds directly from savers to the private sector matching the demand for funds for longterm investments with the supply of long term savings ` he said.
He said the existence of a functioning private bond market serves both borrowers by broadening access to funding, and by lowering borrowing costs as well as savers.
`In Pakistan`s case in particular, it would provide savers with an alternative to bank deposits. It has longbeen recognised that the presence of such markets is a significant source of competition for the banking system, he added.
`It is a matter of concern, and indicative of potential, that the size of the listed corporate debt market in Pakistan stands at less than one per cent of GDP,` he said, adding that corporate debt market can enhance financial stability by mitigating rollover interest risk for borrowers.
The SBP and SECP would make joint effort to develop guidelines for shelf registration of corporate debt, collaboration with credit rating agencies to streamline the issuer and instrument rating process and coordination with provincial authorities on rationalisation of stamp duty on transfer and issuance of corporate debt Instruments.
The joint effort will also collaborate with FBR and GoP to rationalise tax treatment of corporate debt instruments, encourage the development of corporate debt market, it is essential that taxation issues are addressed in an appropriate manner and communicated to the stakeholders and develop standards for valuation ofcorporate debt instruments.
Mr Anwar said that these initiatives were of utmost importance to be above to move from a purely banking loans market towards a vibrant debt capital markets.
`This will not only facilitate providing diversified investment avenues for various stakeholders, but will also help in improving saving ratios of the country and enable borrowers to raise efficiently price financing for crucial infrastructure projects,` he said.
He pointed out that in most countries, the government as the largest issuer of debt securities provides the volume required for a liquid secondary market.
In Pakistan, however, PIBs are unable to serve this for two reasons. Firstly, the market is not sufficiently liquid, and secondly, there is no benchmark for private bonds that are issued for a tenor of between 5 and 8 years since PIBs are only available in maturities of 5 and 10 years.
He suggested that the process for primary issuance of corporate debt should be simpler one and fast track; so that a corporate could raise funds quickly when conditions are favourable for debt issuance.
Delivering his key-note address at a conference on `Long-Term Debt Financing Issues and Challenges for Pakistan`, organised by the Institute of Business Management (IoBM), he outlined the tasks of this joint task force.
`I believe that we need to develop an alternative avenue of intermediation: corporate debt market.
These markets will allow the channelling of funds directly from savers to the private sector matching the demand for funds for longterm investments with the supply of long term savings ` he said.
He said the existence of a functioning private bond market serves both borrowers by broadening access to funding, and by lowering borrowing costs as well as savers.
`In Pakistan`s case in particular, it would provide savers with an alternative to bank deposits. It has longbeen recognised that the presence of such markets is a significant source of competition for the banking system, he added.
`It is a matter of concern, and indicative of potential, that the size of the listed corporate debt market in Pakistan stands at less than one per cent of GDP,` he said, adding that corporate debt market can enhance financial stability by mitigating rollover interest risk for borrowers.
The SBP and SECP would make joint effort to develop guidelines for shelf registration of corporate debt, collaboration with credit rating agencies to streamline the issuer and instrument rating process and coordination with provincial authorities on rationalisation of stamp duty on transfer and issuance of corporate debt Instruments.
The joint effort will also collaborate with FBR and GoP to rationalise tax treatment of corporate debt instruments, encourage the development of corporate debt market, it is essential that taxation issues are addressed in an appropriate manner and communicated to the stakeholders and develop standards for valuation ofcorporate debt instruments.
Mr Anwar said that these initiatives were of utmost importance to be above to move from a purely banking loans market towards a vibrant debt capital markets.
`This will not only facilitate providing diversified investment avenues for various stakeholders, but will also help in improving saving ratios of the country and enable borrowers to raise efficiently price financing for crucial infrastructure projects,` he said.
He pointed out that in most countries, the government as the largest issuer of debt securities provides the volume required for a liquid secondary market.
In Pakistan, however, PIBs are unable to serve this for two reasons. Firstly, the market is not sufficiently liquid, and secondly, there is no benchmark for private bonds that are issued for a tenor of between 5 and 8 years since PIBs are only available in maturities of 5 and 10 years.
He suggested that the process for primary issuance of corporate debt should be simpler one and fast track; so that a corporate could raise funds quickly when conditions are favourable for debt issuance.
Thursday 23 February 2012
CFA Level 1 2012
BOOKS:
CFA Level-1
(2012)
A committee of practicing CFA charter holders, in conjunction with CFA Institute staff, design the curriculum to deliver the Candidate Body of Knowledge (CBOK) to CFA Program candidates.
The curriculum for each exam level is organized into 18 study sessions, including assigned readings, learning outcome statements (LOS), and problem sets.
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