news letter - ifmp.org.pk

BUSINESS AND ECONOMIC NEWSFLASH

URDU GLOSSARY

MARKETS IN REVIEW

QUOTES AND JOKES

TERMS OF THE MONTH

VOLUNTARY PENSION SCHEMES IN PAKISTAN

NEWSLETTER OCTOBER 2018

Institute of Financial Markets of Pakistan

The name of the institute has been changed

from Institute of Capital Markets to

Institute of Financial Markets of Pakistan

Contact Us

Address: Building 9-A, 2nd Floor,

P.E.C.H.S Block No. 6, Shahrah-e-Faisal,

Karachi. Tel: +92 (21) 34540843-44

MESSAGE FROM THE CEO

INTRODUCTION TO THE INSTITUTE

IFMP ACTIVITIES

TERMS OF THE MONTH

BUSINESS AND ECONOMIC NEWSFLASH

URDU GLOSSARY

QUOTES AND JOKES

MARKETS IN REVIEW

ARTICLE ON

Importance of Effective Human

Resource Management

00 CONTENT

Message from the CEO

Introduction to the

Institute

IFMP

Activities

Article:

ARTICLE

Urdu Glossary

Quotes and Jokes

Business and Economic

Newsflash

Page: 3 Page: 4

Page: 7 Page: 11

Page: 15 Page: 16

www.ifmp.org.pk 92 (21) 34540843-44 [email protected]

Terms of the Month

Page: 10

Page: 5

Markets in Review

Page: 17

01

Message from the Chief Executive Officer

◊ October 2018 IFMP Newsletter ◊

he last few years have seen a rapid growth in size, quality and

sophistication of financial markets, because of changes in the

policy and regulatory environment, the entrepreneurial initiatives

of individuals and institutions, and the availability of trained man-

power. The continuing growth of financial markets is further adding

to the demand for well-trained professionals.

Institute of Financial Markets of Pakistan is dedicated to the profes-

sional development of financial markets and research on financial markets as well as the

well being of financial markets by educating the professionals about the norms and ethics

being practiced in the markets. IFMP has had a pioneering role in meeting the demand for

educated manpower. It is Pakistan's first specialized institution devoted to the education

and updating of knowledge of manpower for financial markets. It will provide high-

quality educational standards for all types of financial market participants; investors,

brokers, mutual funds, investment banks and policy makers.

The Institute's main activities are (1) Licensing the professionals working in the financial

markets by certifications. The institute’s key responsibility is to educate the professionals

working in different financial markets of Pakistan through examining their knowledge in

their relevant field of work; (2) Studying the latest developments in the financial markets

in order to discover whether there is such a thing as an ideal market economy; and (3)

Contributing to the development of financial markets in Pakistan. By means of these three

activities the Institute seeks to communicate its ideas to the audience both at home and

overseas. The Institute's research is intended, first and foremost, to be neutral, profes-

sional and practical. Rooted in practice, it aims to contribute to the healthy development

of Pakistani financial markets as well as to related policies by conducting neutral and pro-

fessional studies of how these markets and the financial system are regulated and orga-

nized and how they perform.

The economy is changing all the time. The Institute hopes that, by responding to these

changes positively, it can contribute to the dynamic development of the country's finan-

cial markets as well as of the economy itself.

Mr. Muhammad Ali Khan

T

02

Introduction to the Institute


The Institute of Financial Markets of Pakistan (IFMP), Pakistan’s first

securities market institute, has been established as a permanent platform to de-velop quality human capital, meet the emerging professional knowledge needs of

financial markets and create standards among market professionals. The Insti-tute has been envisioned to conduct various licensing examinations leading to

certifications for different segments of the financial markets. IFMP develops a pool of trained and certified professionals, skilled not only to deal in convention-

al instruments but also to trade in new and complex financial market products.

◊ FEE STRUCTURE ◊

Candidate Registration Fee Rs.10,000

Examination Registration Fee Rs.7,000

Membership Fee (Annual) Rs.5,000

Study Guide (Hard Copy) Rs.800

◊ EXAMINATION SCHEDULE ◊

Sun, November 25, 2018

Sun, January 27, 2019

Sun, March 31, 2019

Sun, May 26, 2019

PROGRAMMES

LICENSING CERTIFICATIONS INSURANCE CERTIFICATIONS SPECIALIZED CERTIFICATIONS

Fundamentals of Capital Markets Certification

Pakistan’s Market Regulations Certification

Stock Brokers Certification

Mutual Funds Distributors Certification

Commodity Brokers Certification

Financial Analysts Certification

Mutual Funds Basic Certification

Securities and Futures Advisors’ Certification

Programme (Basic and Core Modules)

General Takaful Agents

Certification

Family Takaful Agents

Certification

Life Insurance Agents

Certification

Non-Life Insurance Agents

Certification

Bancassurance Certification

Bancatakaful Certification

Financial Derivative Traders Certification

Compliance Officers Certification

Clearing and Settlement Operations

Certification

Risk Management Certification

Capital Budgeting and Corporate Finance

Certification

Investment Banking and Analysis Certification

Islamic Finance Certification

Fixed Income Certification


IFMP Activities 03

IFMP conducted MOCK Trading Sessions at ‘CECOS University of IT &

Emerging Sciences, Peshawar

◊ October 2018 IFMP Newsletter Page 5 ◊

IFMP Activities 03

IFMP conducted MOCK Trading Sessions at ‘CECOS session with Foun-

dation University, Islamabad

04


Article

Importance of Effective Human Resource Management

Human resources is important to organizations in myriad areas, ranging from strategic planning to

company image. HR practitioners in a small business who have well-rounded expertise provide a

number of services to employees. The areas in which HR maintains control can enhance an employ-

ees’ experience throughout the workforce while strengthening business operations. Following are

the areas which are important for effective Human Resource Management:

Strategic Management: HR improves the company's bottom line with its knowledge of how human

capital affects organizational success. Leaders with expertise in HR strategic management partici-

pate in corporate decision-making that underlies current staffing assessments and projections for

future workforce needs based on business demand.

Wages and Salaries: HR compensation specialists develop realistic compensation structures that set

company wages competitive with other businesses in the area, in the same industry or companies

competing for employees with similar skills. They conduct extensive wage and salary surveys to

maintain compensation costs in line with the organization's current financial status and projected

revenue.

Analyzing Benefits: Benefits specialists can reduce the company’s costs associated with turnover,

attrition and hiring replacement workers. They are important to the organization because they have

the skills and expertise necessary to negotiate group benefit packages for employees, within the or-

ganization's budget and consistent with economic conditions. They also are familiar with employee

benefits most likely to attract and retain workers. This can reduce the company’s costs associated

with turnover, attrition and hiring replacement workers.

05


Article

Safety and Risk Management: Employers have an obligation to provide safe working conditions.

Workplace safety and risk management specialists from the HR area manage compliance with U.S.

Occupational Safety and Health Administration regulations through maintaining accurate work logs

and records, and developing programs that reduce the number of workplace injuries and fatalities.

Workplace safety specialists also engage employees in promoting awareness and safe handling of

dangerous equipment and hazardous chemicals.

Liability Issues: HR employee relations specialists minimize the organization's exposure and liability

related to allegations of unfair employment practices. They identify, investigate and resolve work-

place issues that, left unattended, could spiral out of control and embroil the organization in legal

matters pertaining to federal and state anti-discrimination and harassment laws.

Training and Development: HR training and development specialists coordinate new employee ori-

entation, an essential step in forging a strong employer-employee relationship. The training and de-

velopment area of HR also provides training that supports the company's fair employment practices

and employee development to prepare aspiring leaders for supervisory and management roles.

Employee Satisfaction: Employee relations specialists in HR help the organization achieve high per-

formance, morale and satisfaction levels throughout the workforce, by creating ways to strengthen

the employer-employee relationship. They administer employee opinion surveys, conduct focus

groups and seek employee input regarding job satisfaction and ways the employer can sustain good

working relationships.

Recruitment and Onboarding: HR recruiters manage the employment process from screening re-

sumes to scheduling interviews to processing new employees. Typically, they determine the most

effective methods for recruiting applicants, including assessing which applicant tracking systems are

best suited for the organization's needs.

06


Article

Hiring Processes: HR professionals work closely with hiring managers to effect good hiring deci-

sions, according to the organization's workforce needs. They provide guidance to managers who

aren't familiar with HR or standard hiring processes to ensure that the company extends offers to

suitable candidates.

Maintaining Compliance: HR workers en-

sure that the organization complies with

federal state employment laws. They com-

plete paperwork necessary for documenting

that the company's employees are eligible

to work in the U.S. They also monitor com-

pliance with applicable laws for organiza-

tions that receive federal or state govern-

ment contracts, through maintaining appli-

cant flow logs, written affirmative action

plans and disparate impact analyses.

**********

07

Terms of the Month


Get Yourself Registered!!

Last Date for Registration for 27th January, 2019

Examination

4th January, 2019

Financial Year

In relation to any body corporate, means the period in

respect of which any profit and loss account or the

income and expenditure account, as the case may be,

of the body corporate, laid before it in general meet-

ing, is made up, whether that period is a year or not.

-Companies Ordinance, 1984

Public Sector Company

A company, whether public or private, which is direct-

ly or indirectly controlled, beneficially owned or not

less than fifty one percent of the voting securities or

voting power of which are held by the Government or

any instrumentality or agency of the Government or a

statutory body, or in respect of which the Government

or any instrumentality or agency of the Government

or a statutory body, has otherwise power to elect,

nominate or appoint majority of its directors, and in-

cludes a public sector association not for profit, li-

censed under section 42 of the Ordinance.

-Public Sector Companies (Corporate Governance)

Rules, 2013

Registered Firm

Firm registered under the Partnership Act, 1932 (IX

of 1932), all the partners of which are advocates.

-The Companies Appointment of Legal Advisors Act,

1974

Shariah Advisor

An individual, a Limited Liability Partnership (LLP) or

a company who/that meets the fit and proper stand-

ards specified by the Commission.

-Public Offering Regulations, 2017

Limited Liability Partnership

A partnership registered

under the Limited Liability

Partnership Act, 2017.

-Sukuk (Privately

Placed)

Regulations,

2017

08

Business and Economic Newsflash


Saudi Arabia pledges $6bn package to Pakistan

After weeks of speculation, Saudi Arabia on Tuesday stepped forward with a $6 billion bailout package for Paki-stan’s ailing economy.

The package includes $3bn balance of payments support and another $3bn in deferred payments on oil imports.

Agreements in this regard were signed on the sidelines of the second edition of the annual Future Investment Initia-tive (FII) Conference in Riyadh. It showcases economic and investment opportunities in Saudi Arabia as it pursues Vision 2030 for diversifying its economy. The Pakistani delegation was led by Prime Minister Imran Khan.

This was the prime minister’s second visit to Saudi Arabia in five weeks. The primary objective of both trips was to seek financial assistance to deal with impending balance of payments crisis.

The Foreign Office in a statement said: “A MoU was signed between the Finance Minister Asad Umar and the Saudi Finance Minister Muhammad Abdullah Al-Jadaan. It was agreed Saudi Arabia will place a deposit of USD 3 Billion for a period of one year as balance of payment support.”

It was further “agreed that a one year deferred payment facility for import of oil, up to USD 3 Billion, will be provid-ed by Saudi Arabia. This arrangement will be in place for three years, which will be reviewed thereafter”.

Pakistan imports 110,000 barrels of crude per day from Saudi Arabia. Taken at the current price, the oil imports

from the kingdom amount to around $3bn in a year.

Pakistan, which is facing the current account deficit of $18bn, had earlier this month sought assistance from the In-

ternational Monetary Fund (IMF) to deal with the aggravating balance of payments problem. An IMF mission is

scheduled to visit Islamabad on Nov 7 for talks on the size of the loan facility that Pakistan could be requiring.

Imran Khan had in an interaction with the media recently said that the country could immediately need around

$12bn to address with the problem.

Saudi Arabia has in the past also helped rescue Pakistan’s economy from dire situations on a number of occasions.

The Kingdom had last time in 2014 gifted Pakistan $1.5bn to beef up its foreign exchange reserves.

The Saudi package may provide breathing space to the government for dealing with economic challenges, but would

not be enough to avoid the IMF facility. It is believed that improved foreign exchange reserves would strengthen

Pakistan’s negotiating position in talks with the Fund.

08



The situation could further improve if China also makes some commitments to rescue its ‘all-weather friend’. PM

Khan is scheduled to travel to China on Nov 3.

During talks with Mr Khan, the Saudi government reaffirmed its interest in setting up an oil refinery in Pakistan.

Talks on setting up of the refinery had started during the prime minister’s visit to the Kingdom last month. Later a

Saudi delegation visited Pakistan for studying the prospects of the project.

“Saudi Arabia confirmed its interest in this project, and a MoU will be signed after obtaining cabinet approval,” the

Foreign Office said.

An agreement for setting up of refinery near Gwadar is expected to be inked between the Pakistan State Oil and

Saudi Aramco soon.

Speaking at the FII Conference, the prime minister while identifying lucrative investment opportunities in the tour-

ism sector, minerals, coal and gas exploration, and Information Technology said Pakistan needed two oil refineries

to meet demand.

Saudi officials and businessmen during their meetings with Mr Khan showed interest in mineral resources develop-

ment. The prime minister pointed out the presence of vast reserves of untapped mineral wealth of Pakistan. He said

the reserves could not be exploited in the past due to terrorism and corruption, but things were changing now.

A Saudi delegation would be invited to visit Pakistan for an exploratory trip after consultations between the federal

and provincial government of Balochistan, the FO said.

Mr Khan held bilateral discussions with King Salman bin Abdul Aziz and Crown Prince Mohammad bin Salman.

The crown prince, the FO said, accepted Mr Khan’s suggestion for reduction of visa fee for Pakistani workers. It de-

scribed the decision as “a significant step towards enhancing Pakistan’s workforce in Saudi Arabia, as well as facili-

tating travel of people from both countries”.

Mr Khan in his speech at the FII Conference said that his government would once again offer peace talks to India

after the coming elections in the neighbouring country.

“Now what we are hoping is that we wait until the elections then again we will resume our peace talks with India,”

he said as he recalled that he had soon after coming to power offered dialogue to India. He said Pakistan’s offer was

then rebuffed.

08



Punjab slashes development budget by more than half

The Punjab government on Tuesday unveiled Rs238 billion Annual Development Programme (ADP) for 2018-19,

which is 62.51 per cent down from Rs635bn set by the previous government for preceding fiscal year.

Explaining this massive decline, Finance Minister Hashim Jawan Bakht said “poor policies and financial irregularities

of the previous government made inevitable slashing down of the development outlay".

The incumbent government’s allocation is markedly less than the previous government’s first year (2013-14) alloca-

tion of Rs290bn for ADP. In fact, throughout its five-year term, the former government increased its development

allocation by 15pc per annum.

In tandem with the trend during last two years, ADP’s contribution remains concentrated in the social sector as

39pc of total allocation or Rs93.6bn goes to education, health, water supply and sanitation, social welfare, women

development, and local government and community development for the remaining eight months of current fiscal

year.

In addition to that, 28pc or Rs66bn has been earmarked by infrastructure development followed by services with

17pc or Rs39.3bn. Production sectors like agriculture, food, livestock, industries and tourism were allotted 8pc share

or Rs19.7bn.

The ADP document ensures allocation to major initiatives including Rs5bn to expand Health Insurance Programme

across the province, Rs5bn for Insaf programme for rural water supply and sanitation, Rs12bn for mother, child

healthcare and nutrition and Rs1.5bn to revamp 25 district and 100 tehsil headquarters hospitals and upgradation

of teaching hospitals.

Furthermore, Rs177 million has been set aside to construct buildings for 90 shelterless schools and Rs900mn to re-

construct 700 dilapidated school buildings and Rs1.1bn for 44 degree colleges.

The budget also set aside Rs433mn to provide skill training to 550,000 youth and Rs4.4bn funds to buy land for spe-

cial economic zone in Faisalabad.

Afforestation of blank areas in irrigated plantations for combating smog and an umbrella programme for uplifting

road network and connectivity are other hallmarks of the ADP.

08



The ADP also includes at least 26 foreign-funded projects finance by The World Bank. The cost and projects include

$300mn for education sector reforms, $130mn for farm productivity improvement, $100mn for jobs and competi-

tiveness plan, $50mn for tourism & heritage growth, $30mn for improving farm market, $200mn for green develop-

ment and $200m for Punjab cities programme.

The Asian Development Bank is funding intermediate cities improvement, Jalalpur Canal, flood emergency, Trimmu

& Punjnad barrages rehabilitation projects and enhancing public private partnerships.

************

09

Urdu Glossary


Appendix تتمہ‘ضمیمہ

Chief Financial Officer حساب دار ا علی

Due Diligence مربوط جائزہ

Grace Period رعایتی مدت

Imprudent Lending غیر محتاط قرض کاری

Justifiable قابل جواز

Ledger-Keeper بہی نویس

Mandate تفویض کردہ اختیار

Nominal Share Capital سرمائے کاعرفی حصہ

Policyholder بیمہ دار

Raw Material خام مال

Salvageable Assets قابل بازیاتی اثائ

Term Finance Certificate مدتی مالیاتی سرٹیفیکیٹ

Unpaid Premium غیر اداشدہ قسط

10

Quotes and Jokes


08

Quotes and Jokes

There were two sets of

rules when it comes to

money: One set of

rules for the people

who work for money

and another set of

rules for the rich who

print money.

Business and financial intelligence are

not picked up within the four walls of

school. You pick them up on the

streets. In school, you are taught how

to manage other people’s money. On

the streets, you are taught how to

make money.

– Ajaero Tony Martins

In the short run,

the market is a vot-

ing machine, but in

the long run, it is a

weighing machine.

– Ben Graham

◊ October 2018 IFMP Newsletter Page 17 ◊

11

Markets in Review


◊ Monthly Review ◊

Crude Oil

(WTI)$

Beginning 73.37

Ending 66.37

Change -7.00

KIBOR

(6 Months)

Bid % Offer %

Beginning 8.34 8.59

Ending 9.35 9.60

Change 1.01

Pakistan

Stock

Exchange

100 Index

Beginning 40,998.59

Ending 41,649.36

Change 650.77

Gold

10 Grams

Beginning Rs. 50,454

Ending Rs. 51,907

Change Rs. 1,453

Silver

10 Grams

Beginning Rs. 703.00

Ending Rs. 703.00

Change Rs. 0.00

Foreign Exchange Rates

Interbank Market (buying)

GBP (£) EURO (€) USD ($)

Beginning Rs. 162.24 Rs. 144.59 Rs. 124.20

Ending Rs. 169.49 Rs. 150.54 Rs. 132.40

Change Rs. 7.25 Rs. 5.95 Rs. 8.20

Contact Us

www.ifmp.org.pk 92 (21) 34540843-44 [email protected]

news letter - ifmp.org.pk

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