NEWSLETTER

May 2020
ARTICLE ON
 MESSAGE FROM THE CEO HOW COVID-19 WILL CHANGE OIL MARKETS

 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: 7

Article Page: 8

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.

◊ May 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 Mon, June 29, 2020
Examination Registration Fee Rs.7,000 Sun, July 26, 2020
Membership Fee (Annual) Rs.5,000
Sun, September 27, 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

◊ May 2020 IFMP Newsletter Page 4 ◊

03 IFMP Activities

IFMP organized free online training/CPD session on the topic of “How to Manage your Per-
sonal Finances during the Covid-19 Pandemic” for its Members. This workshop was con-
ducted by Senior Trainer, Muhammad Owais Atta Siddiqui via zoom, on 5th May, 2020

The online training covered below topics with relevant examples:

 Maslow’s Hierarchy

 Why Personal Financial Modeling?

 Managing Income

 Managing Expenses

 Savings, Investments and Additional Income

 Building the Personal Financial Model

 Sample Financial Management Strategies and Model

IFMP organized free online training/CPD session on the topic of “Managing Stress at Work
and Home” for its Members. This workshop was conducted by Senior Trainer & OD Consult-
ant, M. Asim Ali via zoom, on 9th May, 2020

The word ‘Stress ‘is among the most widely used words today. It is so commonly used that we know exactly
what it is and how it affects us. In a fast developing world with constant and rapid changes in technology which
requires adaptation by people, who are actually changing in terms of habits, culture and social life.

Too much change, too rapidly can often be a main source of stress and imbalance in our lives. Stress at Work-
place & Home is definitely on the rise and the key is to effectively manage stress in order to minimize or elimi-
nate the negative effects. Research shows that stressful working conditions lead to more absenteeism, tardi-
ness, injury and illness and reduced productivity.

This one (1) hour session wss about Stress Management This session will explore the causes of stress and how
participants deal with stress. Participants learn ways of reducing stress by streamlining their physical activity,
making time to relax, getting plenty of sleep, and having a good laugh.

◊ May 2020 IFMP Newsletter Page 5 ◊

03 IFMP Activities

IFMP organized free online training/CPD session on the topic of “Investment

Environment in COVID-19” for its Members. This workshop was conducted by
Mr. Muhammad Asim, CFA via zoom, on 14th May, 2020
The online training covered below topics with relevant examples:

 Investment options available in the Pakistan Market

 Uncertainty of COVID-19 outbreak and the risks associated with it

 Smooth run of IMF program

 Relief in national debt

 Global economic slowdown and crises risks

 Sensitivity of inflation number to currency assumptions

 Political stability and seriousness to national institutional reforms

IFMP organized free online training/CPD session on the topic of

“Understanding Commodities Markets” for its Members. This workshop was
conducted by Mr. Shoaib Ali Khan via zoom, on 16th May, 2020
The online training covered below topics with relevant examples:

 Investment options available in the Pakistan Commodities Market

 Metals, Agriculture, Financials and Energy products

 Types of Futures Contracts

 Pakistan Mercantile Exchange

 How to trade in Commodities - Account opening procedure

 Risks associated with commodities trading

 Regulatory Framework - Do’s and Don’ts of trading in Commodities

 Future of commodities market in Pakistan

◊ May 2020 IFMP Newsletter Page 6 ◊

04 Training Calendar
Months Program Fees (per person) Date

JULY Insurance Agent's Foundation Course 1,500 8th 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

◊ May 2020 IFMP Newsletter Page 7 ◊

05 How COVID-19 Will Change Oil Markets

Oil is cheap, demand is less, and it will take time to come to normal depending on how long this
pandemic will last. These are the facts in oil market today that experts seem to agree on, although
opinions may differ on what happens next.

Whatever happens next, is largely undisputed: The oil industry—and those related to it, such as
transport—has a long and winding road back to profitability.

“This is not a cycle. There will be no return to normal,”. On a more positive note, “This is a defining
moment of ‘restructure’ that will completely reorder the supply chain and create new opportuni-
ties.”

The opportunities will be for those with the

cash, namely large oil companies and private
equity firms. The rest will consolidate or go un-
der, especially small independents in U.S. shale
and Canada’s oil sands.

“For larger companies, those with higher debt

levels from recent M&A or other purchases are
under more pressure to act quickly whether from
shareholders or debt holders” highlighting the
vulnerability of a whole industry. As E&Ps go un-
der and the vertically integrated players slash
spending, oilfield service providers will once
again be exposed to the worst of the crisis.”

Refiners will suffer, too, as the whole oil industry fails its stress test. Even though the oil industry
theoretically has a diversified product portfolio, the current situation shows that its ability to
switch between markets is extremely limited. The industry failed the stress test,”. “The industry
should focus on diversifying the feedstock for downstream. That way, it can more easily absorb
supercheap oil and be more robust against price hikes in the other direction as well.”

How could the industry have diversified? Into refinery feedstocks, vegetable oil and pyrolysis oil
could have been used as feedstock in times of higher oil prices, so when oil prices drop, refineries
could switch to the cheaper petroleum and absorb more of the surplus supply. None of that hap-
pened yet, but it could.

◊ May 2020 IFMP Newsletter Page 8 ◊

05 Article
The new normal, with oil prices at $30-40 a barrel for the observable future, would include anoth-
er innovation drive. Just like in the last crisis when oil companies rushed to boost their production
efficiencies, even if a lot of this boost came from lower oilfield service prices, they will rush again.
This time, however, they will likely make all their processes more efficient to lower operating
costs.

This new normal would also be bad news for shareholders. Companies will need to cut their divi-
dends as there will be a lot less room to borrow or sell assets to maintain current dividend pay-
ment levels, at least for a while. The new normal will also put an end to the industry cycles.

“We are not in a cycle where we should expect a recovery but instead we find ourselves in a restruc-
ture that will be the new normal; there will be no more typical cycles but periods of restructures,”

The reverberations of such seismic change would extend to other industries, of course. The most
obvious one is transport, specifically air transport. The U.S. federal government has poured billions
in cash injections to airlines, but it has not been enough: this is money to prevent large-scale
layoffs, not a long-term solution. Bankruptcies are looming in air travel, too.

We can already get a sense of what is happening with commercial traffic falling 70% and jet fuel
making up approximately 8% of total global oil demand we have shaved 5.5% off global oil de-
mand. As we see the first bankruptcy with Virgin Australia failing and a significant number of other
airlines in precarious positions financially such as Norwegian, there is a credible possibility in the
short run of a permanent loss of flight traffic.

Permanent loss of anything is the last thing anyone wants to hear, but we may well be on course to
a permanent decline in oil demand. The size of this decline will undoubtedly be smaller than the
size of the current decline, caused by national lockdowns and travel bans. But it will be a loss of de-
mand, which would be a departure from what we have known as normal for decades: that oil de-
mand continuously increases, simply because the world’s population increases and it needs ener-
gy.

Now we have lower demand that will stay lower for quite a while. In order for demand to recover
to pre-crisis levels, industrial and transportation activity need to snap back to previous levels, and
this is unlikely to happen within a year.

Indeed, U.S. officials are already preparing for flu season in the fall, bracing up for a fight against
two enemies: the flu and the coronavirus. This, along with comments made by numerous senior
medical professionals, suggests the Covid-19 crisis is far from over, even if lockdowns become to

◊ May 2020 IFMP Newsletter Page 9 ◊

05 Article

get eased in more than a handful of countries. It will be a long fight, both for governments and the
oil industry, along with all industries depending on and related to it.

The silver lining? In the U.S., the industry will be forced to do all the things it didn’t do in the last
two downturns. Out of necessity, U.S. oil players will become truly leaner and meaner, and, as a re-
sult, more resilient. Resilience, it seems, will be the name of the game in the new normal.

Oilfield service providers continue to be hit hard. Having suffered during the last oil price crisis, it
looks like this group will not be spared this time around either. Baker Hughes booked a $15 billion
in non-cash goodwill impairment for Q1, and is expected to cut its 2020 capex by 20%. Schlum-
berger has furloughed employees, cut executive salaries by 20%, cut its dividend by ¾, and
booked an $8.5 billion impairment charge. Halliburton has cut 600 layoffs in Texas and Oklahoma.
Weir Group expects to see a reduction in exploration and development capital expenditure of
30%.

- All the same, the Saudis enjoyed a quadrupling of oil exports to the United States, amid an oil
price war, from February to April. The US imported 1.46 million bpd of Saudi oil in the two weeks
of April.

The DoE is still set to rent out available SPR storage capacity in a last-ditch effort to provide some
relief to oil companies choking on their oil inventory amid the price and demand slump. Nine com-
panies have raised their hand to use the SPR, with 23 million barrels of capacity up for grabs. In
addition to providing relief to oil companies at home, the program is an unspoken acknowledg-
ment that the DoE is well aware the OPEC cuts alone will not provide the market with relief suffi-
cient to keep oil inventories from ballooning out of control.

In the end, it all depends on how long this COVID-19 Pandemic will last and how severe will be the
consequences on the oil market. Lockdowns, travel bans, trade restrictions, education sector
closed; all together will hit hard on the demand of crude oil resultantly considerable low crude oil
prices for short-term to medium-term.

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

Source:

https://www.oilprice.com

◊ May 2020 IFMP Newsletter Page 10 ◊

06 Terms of the Month
Financial Year Registered Firm

In relation to any body corporate, means the period in Firm registered under the Partnership Act, 1932 (IX
respect of which any profit and loss account or the of 1932), all the partners of which are advocates.
income and expenditure account, as the case may be,
-The Companies Appointment of Legal Advisors Act,
of the body corporate, laid before it in general meet-
1974
ing, is made up, whether that period is a year or not.

-Companies Ordinance, 1984 Shariah Advisor

Public Sector Company An individual, a Limited Liability Partnership (LLP) or

A company, whether public or private, which is direct- a company who/that meets the fit and proper stand-
ly or indirectly controlled, beneficially owned or not ards specified by the Commission.
less than fifty one percent of the voting securities or -Public Offering Regulations, 2017
voting power of which are held by the Government or
any instrumentality or agency of the Government or a Limited Liability Partnership
statutory body, or in respect of which the Government
A partnership registered
or any instrumentality or agency of the Government
under the Limited Liability
or a statutory body, has otherwise power to elect,
Partnership Act, 2017.
nominate or appoint majority of its directors, and in-
-Sukuk (Privately
cludes a public sector association not for profit, li-
censed under section 42 of the Ordinance. Placed)
Regulations,
-Public Sector Companies (Corporate Governance)
2017
Rules, 2013

Get Yourself Registered!!

29th June, 2020

Last Date for Registration for 19th June, 2020

Examination

◊ May 2020 IFMP Newsletter Page 11 ◊

07 Business and Economic Newsflash
May 2020 Inflation at 8.2%

Pakistan Bureau of Statistics (PBS) released May 2020 National CPI which came in at 8.2% on YoY.
This takes 11MFY20 average inflation to 10.94% YoY.

Inflation in Brief

1. CPI inflation General, increased by 8.2% on year-on-year basis in May 2020 as compared to an
increase of 8.5% in the previous month and 8.4% in May 2019. On month-on-month basis, it in-
creased by 0.3% in May 2020 as compared to a decrease of 0.8% in the previous month and an in-
crease of 0.6% in May 2019.

2.. CPI inflation Urban, increased by 7.3% on year-on-year basis in May 2020 as compared to an
increase of 7.7% in the previous month and 8.5% in May 2019. On month-on-month basis, it in-
creased by 0.3% in May 2020 as compared to a decrease of 0.7% in the previous month and an in-
crease of 0.7% in May 2019.

3. CPI inflation Rural, increased by 9.7% on year-on-year basis in May 2020 as compared to an in-
crease of 9.8% in the previous month and 8.3% in May 2019. On month-on-month basis, it in-
creased by 0.3% in May 2020 as compared to a decrease of 1.1% in the previous month and an in-
crease of 0.5% in May 2019.

4. SPI inflation on YoY increased by 11.0% in May 2020 as compared to an increase of 9.3% a
month earlier and an increase of 9.9% in May 2019. On MoM basis, it increased by 2.2% in May
2020 as compared to a decrease of 1.8% a month earlier and an increase of 0.6% in May 2019.

5. WPI inflation on YoY basis increased by 1.5% in May 2020 as compared to an increase of 4.9% a
month earlier and an increase of 16.5% in May 2019. WPI inflation on MoM basis decreased by
2.1% in May 2020 as compared to a decrease of 2.0% a month earlier and an increase of 1.2% in
corresponding month of last year i.e. May 2019.

◊ May 2020 IFMP Newsletter Page 12 ◊

07 Business and Economic Newsflash
6. Figures 1.a and 1.b show graphically the data of Table 1. Table 1.1 shows “Period Average” and
“YoY” percent changes in indices of three years.

7. Core inflation measured by non-food non-energy Urban CPI (Core NFNE) increased by 6.3%
on (YoY) basis in May 2020 as compared to an increase of 6.4% in the previous month and 7.2%
in May 2019. On (MoM) basis, it increased by 0.4% in May 2020 as compared to increase of 0.2%
in previous month, and an increase of 0.5% in corresponding month of last year i.e. May 2019.

8. Core inflation measured by non-food non-energy Rural CPI (Core NFNE) increased by 8.4% on
(YoY) basis in May 2020 as compared to an increase of 8.5% in the previous month and 6.8% in
May 2019. On (MoM) basis, it increased by 0.4% in May 2020 as compared to an increase of 0.3%
in previous month, and an increase of 0.4% in corresponding month of last year i.e. May 2019.

9. Core inflation, measured by 20% weighted trimmed mean Urban CPI (Core Trimmed) in-
creased by 6.7% on (YoY) basis in May 2020 as compared to 6.7% in the previous month and by

◊ May 2020 IFMP Newsletter Page 13 ◊

07 Business and Economic Newsflash
7.3% in May 2019. On (MoM) basis, it increased by 0.4% in May 2020 as compared to a decrease
of 0.2% in the previous month and an increase of 0.5% in corresponding month of last year i.e.
May 2019.

10. Core inflation, measured by 20% weighted trimmed mean Rural CPI (Core Trimmed) in-
creased by 8.9% on (YoY) basis in May 2020 as compared to 9.3% in the previous month and by
7.2% in May 2019. On (MoM) basis, it increased by 0.5% in May 2020 as compared to a decrease
of 0.6% in the previous month and an increase of 0.5% in corresponding month of last year i.e.
May 2019.

SBP slashes interest rate by 100bps to 8pc

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

This was the fourth reduction within two months and cumulatively interest rates were slashed
by 5.25 per cent. “The inflation outlook has improved further in light of the recent cut in domes-
tic fuel prices,” said the SBP, adding that inflation could fall closer to the lower end of the previ-
ously announced ranges of 11-12pc this fiscal year and 7-9pc next fiscal year. The central bank
said inflation could fall further than expected if the economic activity failed to pick up as ex-
pected next fiscal year. On the other hand, there were some upside risks from potential food-
price shocks associated 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.

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

◊ May 2020 IFMP Newsletter Page 14 ◊

08 Urdu Glossary

Accessories ‫مزید اشیاء‬

Administrator ‫منتظم‬
Advice ‫مشورہ‬
Application ‫درخواست‬
Indemnity Bond ‫تاوان نامہ‬
Appointment Letter ‫مرا سلہ ٔتقرر‬
Operating Expenses ‫ن ےک اخراجات‬‫کاروبار چال ے‬

Economic Sanctions ‫ی‬

‫معاش پا بندیاں‬
Regulatory Regime ‫انضبا یت نظام‬
Specialized Financial Services ‫ی‬
‫مالیات خدمات‬ ‫خصویص‬
Treasury Bond ‫خزانہ بانڈ‬
Undisclosed Income ‫ے‬
‫آمدت‬ ‫غی ظاہر کردہ‬
‫ر‬
Vested Interest ‫مخصوص مفاد‬
Commodities Market ‫باز ِاراجناس‬

◊ May 2020 IFMP Newsletter Page 15 ◊

10
08
09 Quotes
Quotes and
and Jokes
Jokes
Feedbacks

Feedback on IFMP training

“Overall the session was very beneficial and informative I really appreciate IFMP for this ini-
tiative”
 Muhammad Ali Bhatti — Bank Alfalah Ltd.
 Attended IFMP — How to Manage your Personal Finances during the Covid-19
Pandemic Training

‘Excellent Session, really need these kind of sessions in these tough times”
 Mudassar Farooq — Punjab Pension Fund
 Attended IFMP — Managing Stress at Work and Home Training

“Training was very good and useful”

 Hammad Hassan— ABL Asset Management Ltd.
 Attended IFMP — How to Manage your Personal Finances during the Covid-19
Pandemic Training

“With reference to the today's session, It was very informative ”

 Humayun Khalid — Al-Meezan Investments Ltd.
 Attended IFMP — How to Manage your Personal Finances during the Covid-19
Pandemic Training

◊ May
December
March
2020
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 18.84 Beginning 7.44 7.69 Beginning 34,111.64

Ending 35.49 Ending 7.63 7.88 Ending 33,931.23

Change 16.65 Change 0.19 Change -180.41

Gold Silver

10 Grams 10 Grams

Beginning Rs. 88,740 Beginning Rs. 772

Ending Rs. 91,153 Ending Rs. 938

Change Rs. 2,413 Change Rs. 166

Foreign Exchange Rates

Interbank Market (buying)

GBP (£) EURO (€) USD ($)

Beginning Rs. 201.00 Rs. 175.00 Rs. 161.00

Ending Rs. 201.67 Rs. 181.31 Rs. 163.25

Change Rs. 0.67 Rs. 6.31 Rs. 2.25

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

◊ May 2020 IFMP Newsletter Page 17 ◊