Month: March 2018

Riba: Why borrower is cursed?

Prophet Muhammad (PBUH) cursed all the participants of riba: lender, borrower, one who records and witnesses. Everyone knows that Riba is haram in Islam. Generally it is thought that lenders take advantage of poor people and trap them in the vicious circle of riba. However if it was true, why would borrower be cursed. Is […]

Islamic finance

Abnormal Pakistan Stock Exchange: Dividend Discount Model

Pakistan is a troubled country. It does not have stable policies and plans and as a result it does not have stable economy. You cannot expect steadiness from Pakistani economy. There are sudden and unexpected changes. This is why most of financial, economic and statistical models fail here because the fundamental thing that makes these […]

Finance

Scheduled Banks Half-Yearly Returns Excel to DBF

An associate of ours works at a bank where part of their responsibility is SBP reporting. One of such reports is Scheduled Banks Half-Yearly Returns (http://www.sbp.org.pk/departments/stats/datasoft.htm) which contains data of deposits, advances, investments and balance sheet of each branch. Report is prepared and submitted through old foxpro based system which is outdated. They have been […]

Technology

Artificial Intelligence: Neural Networks

AI has long been a subject of many sci-fi fantasy novels and movies. It was always a fascinating topic and a subject of interest but no one really believed that practical AI could be achieved in near future. People thought of it as an invention of far far future. To most of regular tech guys, […]

Technology

Financial Action Task Force (FATF) and Pakistan: Why Pakistan?

Financial Action Task Force (FATF) is an international organization having more then 35 member countries and various other member organizations such as IMF and World Bank. The main objective of FATF is to prevent money laundering and terrorist funding. They do this through their guidelines which must be followed by all countries in order to […]

Economy

Senate approves amendments in the Companies Ordinance, 1984

The Senate has approved the Companies Ordinance (Amendment) Bill, 1998. The reasons for introducing the Amendment Bill and expected impact of the amendments are briefly narrated below:- (i) Under the existing provisions of section 14 of the Ordinance, no association or partnership firm consisting of more than 20 persons may function unless it is registered […]

Business

How to deal with a dumb boss

Being a boss does not mean one is a good leader. People are mostly not promoted to a managerial position  because of their managerial or leadership skills. You must understand that if someone is your boss, it does not mean that they are smarter than you, or they know better than you. But it also […]

Management

PKR devaluing at 6% annually against USD

Pakistani Rupee (PKR) has been devaluing since creation of Pakistan. In 60’s one USD was around Rs. 4.75. However today one USD is around Rs. 112. The increase in price of dollar is shown in following chart. It is observed that PKR is devaluing at around 6% annually against USD.

Economy

Another way of looking at Riba/Interest.

There are many reasons of riba being haram in Islam. Haram means forbidden. It is highly forbidden in Islam. It is said that being involved in riba means declaring war with Allah and His Prophet (PBUH). Riba means any amount received in excess of original amount lent to a person. That is the simple meaning […]

Islamic finance