NEWSLETTER

June 2020
ARTICLE ON
 MESSAGE FROM THE CEO PAKISTAN BUDGET 2020-21

 INTRODUCTION TO THE INSTITUTE

 IFMP ACTIVITIES

 TRAINING CALENDAR

 ARTICLE

 TERMS OF THE MONTH

 BUSINESS AND ECONOMIC NEWSFLASH

 URDU GLOSSARY
TERMS OF THE MONTH

 FEEDBACKS
BUSINESS AND ECONOMIC NEWSFLASH

 MARKETS IN REVIEW

URDU GLOSSARY

Your Gateway to Careers in Financial Markets

QUOTES AND JOKES

Institute of Financial
MARKETS Markets of Pakistan
IN REVIEW

Address: Building 9-A, 2nd Floor,

P.E.C.H.S Block No. 6, Shahrah-e-Faisal Karachi.
Tel: +92 (21) 34540843-44
00 CONTENT

Message from the CEO Page: 3

Introduction to the Institute Page: 4

IFMP Activities Page: 5

Training Calendar Page: 6

Article Page: 7

Terms of the Month Page: 11

Business and Economic Newsflash Page: 12

Urdu Glossary Page: 15

Feedbacks Page: 16

Markets in Review Page: 17

www.ifmp.org.pk 92 (21) 34540843-44 info@ifmp.org.pk

01 Message from the Chief Executive Officer

T 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.
Mr. Muhammad Ali Khan
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.

◊ June 2020 IFMP Newsletter Page 3 ◊

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 ◊ ◊ EXAMINATION SCHEDULE ◊

Candidate Registration Fee Rs.10,000 Wed, August 12, 2020
Examination Registration Fee Rs.7,000 Wed, September 30, 2020
Membership Fee (Annual) Rs.5,000
Wed, November 25, 2020
Study Guide (Hard Copy) Rs.800

PROGRAMMES

LICENSING CERTIFICATIONS INSURANCE CERTIFICATIONS SPECIALIZED CERTIFICA-

Fundamentals of Capital Markets Certification General Takaful Agents Financial Derivative Traders Certification
Certification
Pakistan’s Market Regulations Certification Compliance Officers Certification
Family Takaful Agents
Stock Brokers Certification Clearing and Settlement Operations Certification
Certification
Mutual Funds Distributors Certification Risk Management Certification
Life Insurance Agents
Commodity Brokers Certification Capital Budgeting and Corporate Finance
Certification
Financial Analysts Certification Certification
Non-Life Insurance Agents
Mutual Funds Basic Certification Certification Investment Banking and Analysis Certification

Securities and Futures Advisors’ Certification Bancassurance Certification Islamic Finance Certification
Programme (Basic and Core Modules) Bancatakaful Certification Fixed Income Certification
AML/CFT Certification

◊ June 2020 IFMP Newsletter Page 4 ◊

03 IFMP Activities

IFMP organized free online training/CPD session on the topic of “Write To Inspire - Draft
Meaningful Business Emails ” for its Members. This workshop was conducted by Senior
Trainer, Muhammad Hassam Siddiqui via zoom, on 9th June, 2020

The online training covered below topics with relevant examples:

 What can possibly go wrong in drafting an email

 Facts about email communication:

 2.7 million emails are sent per second

 10% chances for an email to be read 24hrs are passed

 Checking email causes stress to majority of people

 47% of the emails are opened based on their subject line

 Understanding reader’s mind

 Avoiding routine mistakes

 Framework of writing an email

IFMP organized free online training/CPD session on the topic of “Effective Sales Strategies
during Covid-19 Pandemic” for its Members. This workshop was conducted by Abbas Ali Iq-
bal - High Performance Sales Coach via zoom, on 25th June, 2020

 Challenges in Sales

 Learning from challenges and set backs in sales

 Sales as a learning process

 Positivity (yes scenario) as a best strategy in sales

 Using online (social media) strategies in sales

 Sales is all about Results

 Focusing on Customer’s financial goals instead of your sales targets

◊ June 2020 IFMP Newsletter Page 5 ◊

04 Training Calendar
Months Program Fees (per person) Date

JULY Insurance Agent's Foundation Course 1,500 11th July, 2020

JULY Compliance Officer Certification Training 1,500 14th July, 2020

JULY Stock Brokers Certification Training 1,500 21th July, 2020

JULY AML Certification Training 1,500 29th July, 2020

AUGUST Mutual Fund Distributors Certification Training 1,500 4th August, 2020

AUGUST AML Regulations Training - SECP, SBP, FMU 2,500 13th August, 2020

AUGUST Commodity Brokers' Certification 1,500 19th August, 2020

AUGUST Risk Management Certification Training 1,500 27th August, 2020

SEPTEMBER AML Certification Training 1,500 9th September, 2020

SEPTEMBER Fundamentals of Capital Markets 1,500 17th September, 2020

SEPTEMBER Financial Markets: Trading and Analysis 1,500 23rd September, 2020

OCTOBER Insurance Agent's Foundation Course 1,500 6th October, 2020

OCTOBER Pakistan Markets Regulations Certification 1,500 15th October, 2020

OCTOBER Investment Banking & Analysis Certification 1,500 21st October, 2020

NOVEMBER Financial Analysts Certification Training 1,500 5th November, 2020

NOVEMBER Stock Brokers Certification 1,500 11th November, 2020

NOVEMBER AML Training Certification 1,500 19th November, 2020

NOVEMBER Mutual Fund Basic Certification 1,500 24th November, 2020

DECEMBER Fixed Income Securities Certification 1,500 8th December, 2020

DECEMBER Compliance Officer Certification 1,500 16th December, 2020

DECEMBER Financial Advisor Certification 1,500 22nd December, 2020

◊ June 2020 IFMP Newsletter Page 6 ◊

05 PAKISTAN BUDGET 2020-21

For the first time in the past 68 years, Pakistan’s gross domestic product (GDP) growth has fallen
to negative 0.38%. Not only it missed almost all the growth targets, whether it was industrial, ser-
vices or agriculture, in most cases, the growth was negative.

Pakistan’s public debt has risen by almost 40% in the past two years – from Rs30 trillion to Rs41
trillion. As a percentage of revenue, debt servicing has gone up from 37% to 62% within one year
and per capita income has further shrunk to $1,271 from $1,363.

Of course, the pandemic has a role in such a worsening situation, but the nine-month data before
Covid-19 was also not very promising.

In this scenario, the best way forward would have been to look at the data and plan the budget ac-
cordingly. We are deceiving ourselves by showing highly exaggerated expected revenues. Last
year, when the revenue target was fixed at Rs5.5 trillion, an increase of 45%, it was patently obvi-
ous that to achieve this in a slowing economy would be impossible.

The same folly is being repeated now by

counting on a rise of 27% in income while
the economy continues to shrink. The rev-
enues have been stagnant since 2018, or
even before the outbreak of coronavirus.
If the revenues are not rising and the
country has reached the limit of high taxa-
tion and borrowing, what else can be
done?

The only way seems to be to cut the non-

development expenditure until such time
that we can afford otherwise. Currently,
almost 60% of expenses is on interest
payments and defence. Without control-
ling these big-ticket items, we should not expect to be able to control expenditure. Temporary
debt relief could provide some breathing space but is not a real solution.

Instead of cutting down on non-development expenditure, it is the development expenditure that

has been reduced further – to Rs650 billion. Public investment is the only tool which the federal

◊ June 2020 IFMP Newsletter Page 7 ◊

05 Article
government has for coping with unprecedented unemployment and for providing fiscal support for
a contracting economy. If there is one area which needs a boost, it is the public sector expenditure.
It could at least have been restored to the level of 2017-18 when the allocation was Rs1,001 billion.
According to the World Bank, “Pakistan’s share of public investment in its GDP is one of the lowest
in the world… This results in inadequate infrastructure, lack of access to sufficient levels of energy
and water, poor quality of schools and hospitals. The problem is further exacerbated by low pri-
vate investment, the share of which in GDP is also a dismal 10%. With such low investment, it is
not likely that the employment situation or any other social indicator can improve.”

The budget 2020-21 has the following salient features:

–Total outlay of budget 2020-21 is Rs 7,294.9 billion. This size is 11 percent lower than the size of
budget estimates 2019-20.

–The resource availability during 2020-21 has been estimated at Rs 6,314.9 billion against Rs
4,917.2 billion in the budget estimates of 2019-20.

–The net revenue receipts for 2020-21 have been estimated at Rs 3,699.5 billion indicating an in-
crease of 6.7 percent over the budget estimates of 2019-20.

–The provincial share in federal taxes is estimated at Rs 2,873.7 billion during 2020-21, which is
11.7 percent lower than the budget estimates for 2019-20.

–The net capital receipts for 2020-21 have been estimated at Rs 1,463.2 billion against the budget
estimates of Rs 831.7 billion in 2019-20 reflecting an increase of 75.93 percent.

–The external receipts in 2020-21 are estimated at Rs 2,222.9 billion. This shows a decrease of
26.7 percent over the budget estimates for 2019-20.

–The overall expenditure during 2020-21 has been estimated at Rs 7,294.9 billion, out of which the
current expenditure is Rs 6,345 billion.

–The development expenditure outside PSDP has been estimated at Rs 70 billion in the budget
2020-21.

–The size of Public Sector Development Programme (PSDP) for 2020-21 is Rs 1,324 billion. Out of
this, Rs 676 billion has been allocated to provinces.

–Federal PSDP has been estimated at Rs 650 billion, out of which Rs 418.7 billion for Federal Min-
istries/Divisions, Rs 100.4 billion for Corporations, Rs 3 billion for Earthquake Reconstruction and

◊ June 2020 IFMP Newsletter Page 8 ◊

05 Article

Rehabilitation Authority (ERRA), Rs 7 billion for COVID responsive and other natural calamities
programme.

REVENUE RECEIPTS:

–Total Federal Board of Revenue taxes for the year 2020-21 are estimated at Rs 4,963 billion.

— Non-tax revenues for the upcoming year are estimated at Rs 1,108.9 billion.

— Gross revenue receipts are estimated at Rs 6,573.22 billion out of which provincial share is Rs
2,873 billion.

–The net revenue receipts for federal government in budget 2020-21 are estimated at Rs 3,699 bil-
lion, showing an increase of 6.8 percent over the budget estimates of 2019-20 and 19.24 percent
over revised estimates of outgoing fiscal year 2019-20.

EXTERNAL RESOURCES:

–The government obtained loans and grants to bridge the gap between the receipts and expendi-
ture. The net external resources for 2020-21 after deduction of foreign loans repayment (Rs 1,228
billion) and repayment of short term credits (Rs 183 billion) have been projected at Rs 810.34 bil-
lion are lower by 73 percent and 64.34 percent respectively when compared with budget and re-
vised estimates 2019-20.

Current Expenditures:

–Total current expenditures of federal government for the year 2020-21 are estimated at Rs 6,344
billion which are 16.7 percent and 12.99 percent lower when compared to the revised estimation
and actual estimation of current expenditures during outgoing year.

–Mark-up payments for the year 2020-21 have been estimated at Rs 2,946 billion out of which Rs
2,631 billion would be paid on domestic debt and Rs 315 billion on foreign debt.

–Expenditures of Rs 470 billion have been estimated for pensions which are 1.4 percent higher
when compared to the revised estimates of Rs 463.4 billion for the outgoing year 2019-20.

◊ June 2020 IFMP Newsletter Page 9 ◊

05 Article

–For Defence Affairs and Services, an amount of Rs 1,289 billion has been estimated for the year
2020-21 compared to revised estimation of Rs 1,227 billion for the outgoing fiscal year 2019-20.

–For grants and transfers, Rs 904 billion have been estimated against Revised estimation of Rs
1,177 billion for the year 2019-20.

–Subsidies have been estimated at Rs 209 billion against revised estimation of Rs 349.5 billion for
2019-20.

–For running of Civil government, Rs 475.7 billion have been estimated for the fiscal year 2020-21
against revised expenditures of Rs 445.8 billion in 2019-20.

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

Source:

https://www.nation.com.pk

https://www.finance.gov.pk

◊ June 2020 IFMP Newsletter Page 10 ◊

06 Terms of the Month
Asset Management Services a company, not being a holding company, the invest-

The services provided for management of open-ended ment of which in the share capital of other companies
schemes and include offering of investment schemes at any one time is of an amount equivalent to eighty
under trust deeds and issue of redeemable securities. per cent of the aggregate of its own paid up capital
and free reserves, but does not include a bank or an
Book and Paper
insurance company or a corporation which is a mem-
Book or paper or Books of accounts include accounts, ber of a Stock Exchange.
deeds, vouchers, registers, writings and documents.
Margin Loan
Clearing Fund Contribution
A loan made by a Non-Banking and Finance Compa-
The contribution required to be made by a clearing
nies, licensed to provide investment finance services
member to the clearing and settlement fund.
to partly finance investment by the client in marketa-
Domestic Insurance Policy ble securities, which shall be held by the Non-Banking
A contract of insurance that provides insurance cover and Finance Companies as collateral, the amount in-
in respect of loss of or damage to a building used pri- vested by the client being the "margin" against the
marily and principally as a residence for the policy loan.
holder, for persons with whom the policy holder has a Notified Entity
family or personal relationship, or for both the policy
A company or class of companies or corporate body
holder and such persons, or loss of or damage to the
or trust or any other entity or person notified by the
contents of such a building, or both.
Federal Government in the official Gazette.
Investment Company

A company engaged principally or wholly in buying

and selling securities of other companies and includes

Get Yourself Registered!!

12th August, 2020

Last Date for Registration for 24th July, 2020

Examination

◊ June 2020 IFMP Newsletter Page 11 ◊

07 Business and Economic Newsflash
June 2020 Inflation at 8.59%

Pakistan Bureau of Statistics (PBS) released June 2020 National CPI which came in at 8.59% on
YoY. This takes 12MFY20 average inflation to 10.74% YoY.

Inflation in Brief

1. CPI inflation General, increased by 8.6% on year-on-year basis in June 2020 as compared to an
increase of 8.2% in the previous month and 8.0% in June 2019. On month-on-month basis, it in-
creased by 0.8% in June 2020 as compared to an increase of 0.3% in the previous month and an
increase of 0.5% in June 2019.

2. CPI inflation Urban, increased by 7.6% on year-on-year basis in June 2020 as compared to an in-
crease of 7.3% in the previous month and 8.1% in June 2019. On month-on-month basis, it in-
creased by 0.7% in June 2020 as compared to an increase of 0.3% in the previous month and an
increase of 0.3% in June 2019.

3. CPI inflation Rural, increased by 10.0% on year-on-year basis in June 2020 as compared to an
increase of 9.7% in the previous month and 7.9% in June 2019. On month-on-month basis, it in-
creased by 1.0% in June 2020 as compared to an increase of 0.3% in the previous month and an
increase of 0.7% in June 2019.

4. SPI inflation on YoY increased by 11.5% in June 2020 as compared to an increase of 11.0% a
month earlier and an increase of 9.3% in June 2019. On MoM basis, it increased by 1.4% in June
2020 as compared to an increase of 2.2% a month earlier and an increase of 0.9% in June 2019.

5. WPI inflation on YoY basis increased by 0.9% in June 2020 as compared to an increase of 1.5% a
month earlier and an increase of 14.0% in June 2019. WPI inflation on MoM basis decreased by
0.3% in June 2020 as compared to a decrease of 2.1% a month earlier and an increase of 0.2% in
corresponding month of last year i.e. June 2019.

◊ June 2020 IFMP Newsletter Page 12 ◊

07 Business and Economic Newsflash
6. Table 1.a for Urban and Rural CPI

7. Measured by non-food non-energy Urban CPI increased by 6.5% on (YoY) basis in June 2020
as compared to an increase of 6.3% in the previous month and 7.3% in June 2019. On (MoM) ba-
sis, it increased by 0.4% in June 2020 as compared to increase of 0.4% in previous month, and an
increase of 0.2% in corresponding month of last year i.e. June 2019.

8. Measured by non-food non-energy Rural CPI increased by 8.8% on (YoY) basis in June 2020 as
compared to an increase of 8.4% in the previous month and 6.7% in June 2019. On (MoM) basis,
it increased by 0.7% in June 2020 as compared to an increase of 0.4% in previous month.

◊ June 2020 IFMP Newsletter Page 13 ◊

07 Business and Economic Newsflash
9. Measured by 20% weighted trimmed mean Urban CPI increased by 7.4% on (YoY) basis in
June 2020 as compared to 6.7% in the previous month and by 7.3% in June 2019. On (MoM) ba-
sis, it increased by 0.4% in June 2020 as compared to an increase of 0.4% in the previous month
and an increase of 0.4% in corresponding month of last year i.e. June 2019.

10. Measured by 20% weighted trimmed mean Rural CPI increased by 9.9% on (YoY) basis in
June 2020 as compared to 8.9% in the previous month and by 7.2% in June 2019. On (MoM) ba-
sis, it increased by 0.9% in June 2020 as compared to an increase of 0.5% in the previous month
and an increase of 0.7% in corresponding month of last year i.e. June 2019.

SBP slashes interest rate by 100bps to 7pc

In view of falling inflation, the State Bank of Pakistan (SBP) slashed the policy interest rate by
100 basis points to seven per cent to provide easy liquidity to help businesses under stress ow-
ing to the Covid-19 pandemic.

This was the fifth reduction within three months and cumulatively interest rates were slashed by
6.25 per cent. “The inflation outlook has improved further in light of the recent cut in domestic
fuel prices,” said the SBP, adding that inflation could fall closer to the lower end of the previously
announced ranges of 11-12pc this fiscal year and 7-9pc next fiscal year. The central bank said in-
flation could fall further than expected if the economic activity failed to pick up as expected next
fiscal year. On the other hand, there were some upside risks from potential food-price shocks as-
sociated with adverse agricultural conditions.

However, the SBP maintained that easier monetary policy could neither affect the rate of infec-
tion transmission nor prevent the near-term fall in economic activity due to the lockdown; it
could provide liquidity support to households and businesses to help them through the ensuing
temporary phase of economic disruption.

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

◊ June 2020 IFMP Newsletter Page 14 ◊

08 Urdu Glossary

Grant ‫عطا‬
Growth rate ‫اضافے کی شرح‬
Guarantee ‫ضمانت‬
Harmony ‫ہم آہنگی‬
Honorarium ‫اعزاز‬
Illustrate ‫واضح کریں‬
Imminent ‫امیر‬
Impact ‫متاثر‬
Impediment ‫ہتھیار‬
Impersonation ‫ردعمل‬
Impetus ‫محرک‬
Import ‫درآمد‬
Income ‫آمدنی‬
Inflation ‫افراط زر‬

◊ June 2020 IFMP Newsletter Page 15 ◊

10
08
09 Quotes
Quotes and
and Jokes
Jokes
Feedbacks

Feedback on IFMP training

“Informative and needed session. Thanks ”

 Hassan Sharif — UBL Fund Managers Ltd.
 Attended IFMP — Write To Inspire - Draft Meaningful Business Emails Train-
ing

‘Very important topic, the session was very good, thanks”

 Abdul Wahab — MCBAH Investments Ltd
 Attended IFMP — Write To Inspire - Draft Meaningful Business Emails Train-
ing

“Great session, IFMP keep it up”

 Naveed Ahmed — Dawood Family Takaful
 Attended IFMP — Effective Sales Strategies during Covid-19 Pandemic Train-
ing

“Please continue doing these kind of sessions, very valuable session ”

 Cyril Rangel — NIT
 Attended IFMP — Effective Sales Strategies during Covid-19 Pandemic Train-
ing

◊ June
December
March2020
20192018 IFMPIFMP
Newsletter
Newsletter Page 16
Page
◊ 16 ◊
 Markets in Review
10
◊ Monthly Review ◊
Pakistan
KIBOR
Crude Oil Stock
(6 Months)
Exchange

(WTI)$ Bid % Offer % 100 Index

Beginning 35.49 Beginning 7.63 7.88 Beginning 33,931.23

Ending 39.27 Ending 6.99 7.24 Ending 34,421.92

Change 3.78 Change 0.64 Change 490.69

Gold Silver

10 Grams 10 Grams

Beginning Rs. 91,153 Beginning Rs. 938

Ending Rs. 96,150 Ending Rs. 981

Change Rs. 4,997 Change Rs. 43

Foreign Exchange Rates

Interbank Market (buying)

GBP (£) EURO (€) USD ($)

Beginning Rs. 201.67 Rs. 181.31 Rs. 163.25

Ending Rs. 205.89 Rs. 188.19 Rs. 167.60

Change Rs. 4.22 Rs. 6.88 Rs. 4.35

Contact Us
www.ifmp.org.pk 92 (21) 34540843-44 info@ifmp.org.pk

◊ June 2020 IFMP Newsletter Page 17 ◊