Restructuring of Financial Sector in Pakistan

The process of financial sector restructuring started in Pakistan during early 1990s. For this purpose, international financial institutions, like World Bank and ADB, provided technical and financial resources. The objective of this exercise was to let financial system play its role in economic growth and development of the country in an efficient and competitive way. A lot of policy decisions have been made and implemented during the last decade to reduce distortions and to develop competitive price mechanism in the financial markets. The process of restructuring is still going on and it is a bit earlier to say some final words about its success, however, we are able to say, on the basis of the trend the financial and other indicators are following, that we have been partially successful in achieving the set objectives. The competition among financial institutions has been intensified during the restructuring period. Some positive developments have also been witnessed on the front of money and foreign exchange markets. Though there are some improvements, yet there is a lot to do for strengthening of insurance sector, capital market and bond market. The whole exercise remained less effective in increasing financial deepening, and in reducing intermediation cost (i.e., interest rate spread). Until end of 1990s, policy of privatization of NCBs and drive for recovery of NPLs could not be pursued vigorously and NPLs continued to grow. During the last three years some considerable efforts have been made for privatization of NCBs. Only recently, the size of the NPLs has started to stabilize due to some intensified recovery efforts and better quality of new loans. The size of the NPLs is primarily responsible for the deteriorated health of financial institutions. The overall macroeconomic outcome is also against the expectations. Macroeconomic stability as well as proper sequencing of restructuring measures are necessary preconditions to the success of the whole exercise. In Pakistan, the financial restructuring process was introduced in an environment of large budget deficit and high and variable inflation i.e., in an atmosphere of macro-economic instability. Frequent changes in political set up of the country during 1990s also adversely affected this process. However, in the present milieu of political and economic management, it is expected that financial sector will be able to play its due role in economic growth and efficiency as the governance structure is improving, consistency in economic policies is being ensured, and political stability is envisaged.

Corporate Governance for Banks in Pakistan: Recent Developments and Regional Comparisons

The emerging economies in the South Asian region have embarked on a bold reform process to develop the banking sector. This development has improved the transparency and accountability of the banking sector because these countries focused on ‘best practice’ corporate governance for banks. In view of a rapidly developing market with a slow pace of information dissemination, adverse selection and moral hazard problems are likely to be on the rise and may need a mechanism to train and discipline bank management. It was, therefore timely for the central banks in the region to introduce a ‘best practice’ for the banking system as a whole. This study provides a survey of recent developments in corporate governance of the banking sector in Pakistan and a comparison of similar developments in two other regional economies, namely, India and Bangladesh. In addition to a theoretical discussion on this issue, we also provide an overview of the banking sector restructuring and highlighting important features of the codes of corporate governance established by central banks in the sample countries. In conclusion, we present a comparison of the major differences in these measures across countries and comment on the pace of these developments.Corporate Governance, Banks, Pakistan

Financial Development and Economic Growth: Evidence from a Heterogeneous Panel of High Income Countries

This paper examines the empirical relationship between financial development and economic growth for high income countries. The study focuses on both indirect finance and direct finance, separately as well as jointly. Applying the methodology of Nair-Reichert and Weinhold (2001) for causality analysis in heterogeneous panel data, two sets of results are reported. First, the evidence regarding the relationship between financial development and economic growth from a contemporaneous non-dynamic fixed effects panel estimation is mixed. Negative and statistically significant estimates of the coefficient of the inflation and financial development interaction variable indicate that financial sector development may even be harmful to economic growth when inflation is rising. Second, in contrast with the recent evidence of Beck and Levine (2003), heterogeneous panel causality analysis applied on a refined model indicates that there is no definite evidence that finance spurs economic growth or growth spurs finance. Most of our findings are in line with the Lucas (1988) view that the importance of financial matters is over-stressed. The only exception is the case of activity in stock markets where our result supports the Robinson (1952) view that finance follows enterprise.

A bridgeless Cuk PFC converter

A bridgeless Power Factor Correction (PFC) circuit based on Cuk converter is proposed in this paper. The operation during each sub-interval modes of the converter operated in Discontinuous Conduction Mode (DCM) is discussed. The smallsignal and large signal models are presented using Current Injected Equivalent Circuit Approach (CIECA). PLECS/Simulink is used to verify the capability of the proposed converter to regulate the output voltage while the input current regulation is inherent. This converter is capable to operate in universal input voltage condition

Inflation and financial sector correlation: the case of Bangladesh

This paper examines the impact of inflation on financial development in case of Bangladesh for the period of 1985-2005. In doing so, ARDL bounds testing approach and Error Correction Method (ECM) have been employed. Empirical findings reveal that high trends of inflation impede the performance of financial markets. GDP per capita promotes development of financial sector through its causal channels.Financial Sector, Inflation, Pakistan, ARDL Approach

PUBLIC DEBT MANAGEMENT

This paper examined the issue of managing public debt and analyses the present situation of public debt in Pakistan. When the government resorts to borrowing instead of introducing additional tax measures, to finance the budget deficit, it creates liability on itself known as public debt. Public debt accumulates over time if deficit in the budget presists for a long period of time. Growing public debt is a global phenomenon. Contemporary economic wisdom does not consider public debt a major problem per se; rather problem is the mismanagement and unsustainability of the debt. In Pakistan, due to improper use of debt, the debt management has become a much serious problem. Presitent mismanagement of debt made it unsustainable, which is threatening to cause further slowdown in the declining growth rate of the country. Off course, current exercises of debt restructuring could not help improve our debt to GDP ratio immediately: however, it has improved some short run debt burden indicators significantly. It is hoped that these reschedulings/restructuring will help us in increasing the investment and to promote growth. By improving our debt managemet process we can ensure it.

PELAKSANAAN TANGGUNG JAWAB SOSIAL PERUSAHAAN OLEH PT BANK BUKOPIN TBK CABANG BANDA ACEH

ABSTRAKMUHAMMAD EDYANSA. N PELAKSANAAN TANGGUNG JAWAB 2016SOSIAL PERUSAHAAN OLEH PT BANK BUKOPIN TBK CABANG BANDA ACEHFakultas Hukum Universitas Syiah Kuala(vi, 54) pp., tabl., bibl., app EKA KURNIASARI, S.H., M.H., LL.MBerdasarkan Pasal 74 Undang-Undang Nomor 40 Tahun 2007 Tentang Perseroan Terbatas, setiap perusahaan menjalankan kegiatan usahanya di bidang dan/atau berkaitan dengan sumber daya alam, untuk melaksanakan tanggung jawab sosial dan lingkungan. PT Bank Bukopin Tbk sebagai salah satu perseroan terbatas dan sudah melaksanakan tanggung jawab sosial perusahaan, namun belum berjalan dengan baik terhadap masyarakat sekitar lokasi perusahaan dan masyarakat Gampong Jantho Baro pada umumnya.Tujuan penelitian ini adalah untuk menjelaskan tentang pelaksanaan tanggung jawab sosial perusahaan PT Bank Bukopin Tbk cabang Banda Aceh terhadap masyarakat, kendala-kendala dalam pelaksanaan tanggung jawab sosial perusahaan PT Bank Bukopin Tbk cabang Banda Aceh, dan upaya-upaya yang dilakukan PT Bank Bukopin Tbk cabang Banda Aceh dalam peningkatan tanggung jawab sosial perusahaan.Data untuk penelitian ini diperoleh melalui penelitian kepustakaan dan penelitian lapangan. Penelitian kepustakaan dilakukan dengan mempelajari peraturan perundang-undangan, buku-buku dan karya ilmiah, sedangkan penelitian lapangan dilakukan dengan mewawancarai responden dan informan. Data dianalisis dengan menggunakan pendekatan kualitatif.Sebagai bentuk pelaksanaan tanggung jawab sosial perusahaan, PT Bank Bukopin Tbk cabang Banda Aceh telah melaksanakan beberapa program tanggung jawab sosial perusahaan terhadap masyarakat, misalnya dengan pemberian bantuan modal, pemberian bahan baku makanan, dan pemberian bantuan pembibitan ikan lele. Dalam pelaksanaannya terdapat hambatan-hambatan seperti hambatan yuridis yaitu aturan yang kurang jelas dan tegas serta hambatan non yuridis kendala dalam pengecekan tempat, penyalahgunaan dana Corporate Social Responsibility, kurangnya sumberdaya manusia, krisis keuangan dan keterlambatan pencairan dana. Upaya yang dilakukan PT Bank Bukopin Tbk cabang Banda Aceh yaitu membuat suatu aturan perusahaan, peningkatan sumberdaya manusia, sosialisasi koordinasi dengan Pemda, pembinaan kepada masyarakat penerima bantuan dan meningkatkan kinerja perusahaan.Tanggung jawab sosial perusahaan harus dilakukan secara maksimal dan konsisten oleh perusahaan terhadap masyarakat, dan perlunya peran Pemerintah sebagai regulator diharapkan mampu menumbuhkan, mengawasi dan mengembangkan pelaksanaan tanggung jawab sosial perusahaan. Serta sanksi yang tegas apabila perusahaan tidak pernah melaksanakan tanggung jawab sosial