Report contents

Company / topic PROFILE

EMERGENCE OF COMPANY:
PRODUCTION PLANTS / total existence:
STAKEHOLDERS AND CAPITAL SHARE:
PRODUCTION / availability
GROWTH DRIVERS AND SALES:
CSR ACTIVIYIES AND GROWTH:
BUSINESS MODEL
GROWTH DRIVERS:
KEY ASSETS:
LEVERAGING ASSETS
VALUE CREATION:
INDUSTRY:
INDUSTRY GROWTH
MACRO ANALYSIS:
IMPACT OF GDP:
INFLATION:
POPULATION GROWTH RATE:
INTEREST RATE:
EXCHANGE RATE:
COMPETITIVE ANALYSIS
PORTERS FIVE FORCES MODEL:
SWOT ANALYSIS
FINANCIAL VALUTAION:
IMPACTS, RISKS AND OPPORTUINTIES:
FUTURE PROSPECTS

INDUSTRY GROWTH
The Islamic banking industry starting from scratch in 2001-02 has grown
manifolds and in 2013 have achieved approx. 10% share of total banking
industry despite tough economic conditions. The fast pace growth of Islamic
banking in the country during the last decade is an indicator of a huge latent
demand for Islamic Banking products and services. Although the growth is
impressive, there are still areas which require concerted, proactive and
prudent initiatives by stakeholders to further develop and nurture the
industry.
Keeping in view the existing growth potential, SBP in collaboration with
stakeholders has developed the Strategic Plan - Islamic Banking Industry of
Pakistan for the period 2014-2018. The Strategic Plan focuses on critical
issues and includes necessary initiatives for improving public acceptance and
promoting Islamic banking as a distinct and viable system for meeting the
financial services need of the public in general and business community in
particular.
Growth of Islamic banking in the country has been over 30% in the last few
years, which is certainly above the average global growth rate of Islamic
banking and finance. If this trend continues, then one should expect that in
the next three years Islamic banking assets will at least double from its
current size of Rs926 billion.
The newly unveiled Islamic banking strategy by the State Bank of Pakistan
attempts to double the number of Islamic banking branches from 1,200 in
the next four years, and to increase its market share from 10% to 15%.
Given the huge potential the country has in terms of Islamic banking,
increasing the share to 15% is a modest aim. Indeed, if Islamic banking fails
to achieve 20% share in the market by 2018, by all indicators, it has failed
to reach its potential.
IMPACT OF GDP:
The last five years of Pakistans economy were regarded as highly
inflationary periods due to an expansionary monetary policy and the high
oil prices. Inflation is one of the major obstacles in the way of development
of an economy. The inflation rate was recorded at 13.04 per cent in April
2011. From 2003 till 2010, the average inflation rate in Pakistan was 10.15
per cent. One of the main causes of inflation has been the excess printing

of banknotes, high prices of raw materials and finished products, high

taxes, as well as corrupt practices that result in the price level increasing.
Inflation adversely affects the overall economic growth, the financial sector
development and exposes the poor to exploitations. Inflation also erodes
the real income and induces uncertainty among investors.
Inflation needs to be controlled in Pakistan through strategic planning. The
use of domestic products should be encouraged instead of imports,
investment in the production of essential commodities should be focused on
instead of on the production of luxuries, the agriculture sector should be
given subsidies, foreign investment should be encouraged and developed
countries should be requested for financial and managerial assistance. If we
take keen interest in managing the effects of inflation, this problem can be
overcome.
POPULATION GROWTH RATE
Population size, growth rate, and its composition play an important role in
the social and economic development of a country. Demographic statistics of
a country is essential for drafting the plans, framework of economic policies
and judging the growth and development. Pakistan is among those
developing countries where population growth is fairly high.
According to new Pakistan Economic Survey 2013-14, at present it is the
sixth most populous country in the world with projected population of 188
million. According to World Population Data Sheet 2013, Pakistan with
population of 363 million in 2050 is expected to retain the same position. The
population growth rate in Pakistan is 1.95 percent, which is higher than
average growth rate of South Asian countries. The major cause behind higher
growth rate is high fertility rate. Although, over time various governments
have been trying to tackle the issues of high population growth rate through
introducing different programmes like Family Welfare Centres (FWC),
Reproductive Health Services Centres (RHS-A), Regional Training Institutes
and Mobile Services Unit. However, these programmes could not achieve the
desired results mainly due to low literacy level particularly among women in
rural areas, cultural and religious constraints, and lack of skills in promoting
family planning. It is worth mentioning that female education has a
significant effect on fertility.
Women having higher education have a fewer children as compared to
women with less education. Therefore, each year the number of inhabitants
is increasing whereas the resources available in the country are limited due

to which demographic imbalance is increasing. But this demographic

imbalance can be improved with the help of youth population of the country.
Pakistan is one of the worlds largest youth bulge country with 48 percent
population aged 15-49 and 56 percent (age 15-64) is in productive age
group.
This young and dynamic population is considered an omen of prosperity.
They can contribute for the economy and society with their education and
skill. With proper education and training and balanced health facilities, they
can prove to be an asset of the country and can be a source of future
prosperity and development of the country. Demography is the study of the
growth, change and structure of the human population. The demographic
indicators, therefore, are comprised of the collection of information that
summarizes the historical evolution of different changes related with
population.
Major demographic indicators are changes in the size, structure, and
population composition and population growth. Changes in the size and
structure of population are due to changes in the birth rate, death rate and
the net migration. Crude Birth Rate: Crude Birth Rate (CBR) is the annual
number of live bi rths per one thousand persons. CBR of more than 30 per
thousand is considered high and a rate of less than 18 per thousand is
considered low. The global CBR in 2013 was 20 per thousand, while the CBR
in Pakistan has been marginally improved from 26.8 percent in 2013 to 26.4
percent in 2014. Crude Death Rate: Crude Death Rate (CDR) is defined as
total death per one thousand persons in a year.
CDR of less than ten per thousand is considered as low while above twenty
per thousand is considered as high. The global CDR was 8 persons per one
thousand in mid 2013. However, improvements in health services and
expansion in medical facilities in Pakistan have led to decline in CDR from 7.0
percent in 2013 to 6.9 percent in 2014. These rates are often referred as
crude rates because they do not take into account population age structure.
Life Expectancy Life expectancy is the number of years a person would be
expected to live, starting from birth and it measures quantity rather than
quality of life. Globally it is observed that high life expectancy is associated
with high income per capita, improved nutrition, better hygiene, access to
safe drinking water, effective birth control and immunization and other
better medical facilities. Life expectancy in women is higher than men.
Currently, the global life expectancy for both male and female is 70 years.
However, while considering it gender wise, the life expectancy for males is
68 years and for females is 73 years a difference of five years. In Pakistan,
the average life expectancy has improved from 64.6 in 2013 to 64.9 in 2014

for males and for females it has improved from 66.5 in 2013 to 66.9 in 2014.
Marital status is defined as the personal status of each individual in relation
to the marriage laws or customs of the country. Population distribution by
marital status is the percentage distribution of the population in a given age
group by the different marital status categories. Following Table 12.3 shows
the percentage of married population in different age brackets. The lowest
age bracket is 10- 19 in this age bracket around 7 percent people are
married, which means that average marriage age in Pakistan has increased.
The rate of women and men who have never married shows the decreasing
trend with the increasing age. According to Pakistan Labour Force survey
2013-14, 94 percent of the population of the age bracket 35-39 is married.
The most phenomenal increase in married population may be seen in the
age bracket 20-29 where percentage of married population has increased 73
percent.
INTEREST RATE IN PAKISTAN
The central bank of Pakistan kept its key policy rate at 6 percent on
November 21st as inflation rate stayed below 1.7 percent from July to
October and current account deficit narrowed due to decline in oil prices.
Interest Rate in Pakistan averaged 11.86 percent from 1992 until 2015,
reaching an all time high of 19.50 percent in October of 1996 and a record
low of 6.50 percent in May of 2015. Interest Rate in Pakistan is reported by
the State Bank of Pakistan.
In Pakistan, interest rates decisions are taken by the State Bank of Pakistan.
On 23rd of May, 2015 the discount ceiling rate was replaced by a new official
interest rate, the SBP target rate. This page provides - Pakistan Interest Rate
- actual values, historical data, forecast, chart, statistics, economic calendar
and news. Pakistan Interest Rate - actual data, historical chart and calendar
of releases - was last updated on December of 2015.
EXCHANGE RATE
The USDPKR traded at 105.37 PKR on Friday December 4, according to
interbank foreign exchange market quotes. The Pakistan Rupee averaged
65.41 from 1988 until 2015, reaching an all time high of 108.60 in December
of 2013 and a record low of 18.60 in December of 1988.
The USDPKR spot exchange rate specifies how much one currency, the USD,
is currently worth in terms of the other, the PKR. While the USDPKR spot
exchange rate is quoted and exchanged in the same day, the USDPKR

forward rate is quoted today but for delivery and payment on a specific
future date. This page provides - Pakistan Rupee - actual values, historical
data, forecast, chart, statistics, economic calendar and news. Pakistan Rupee
- actual data, historical chart and calendar of releases - was last updated on
December of 2015.