NEWSLETTER

April 2020
ARTICLE ON
 MESSAGE FROM THE CEO HOW TO BOOST GLOBAL RESILIENCE TO COVID-19

 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.

◊ April 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 Sun, May 31, 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

◊ April 2020 IFMP Newsletter Page 4 ◊

03 IFMP Activities

IFMP organized free online training/CPD session on the topic of “High Impact
Persuasive Presentation Skills” for its Members. This workshop was conducted
by Senior Trainer & OD Consultant, Asim Ali via zoom, on 23rd April, 2020

IFMP organized free online training/CPD session on the topic of “Public Speak-
ing Skills - Speak-Inspire-Lead” for its Members. This workshop was conducted
by M Raza Khan - a certified public speaker via zoom, on 30th April, 2020

◊ April 2020 IFMP Newsletter Page 5 ◊

04 Training Calendar

For the year 2019-2020

Duration
Date Program Fees/person Location
(days)

Data & Analytics for Non-Tech Finance

Postponed Rs9,500 1 Karachi
Professionals

Effective Report Writing Skills for Inter-

Postponed Rs9,500 1 Karachi
nal Auditors

Postponed Mutual Fund Basic Training Rs5,000 1 Karachi

Fundamentals of Capital Markets Train-

Postponed Rs5,000 1 Karachi
ing

Non-Life Insurance Agent's Fundamen-

Postponed Rs5,000 1 Karachi
tals Training and Examination

Commodity Brokers' Certification Train-

Postponed Rs5,000 1 Karachi
ing

Institute of Financial Markets of Pakistan (IFMP) offers training programs for individuals which
help them to understand the financial markets and it’s upcoming trends in a better and easier
way. For the training to be of good quality, IFMP ensures that the trainer has sound knowledge
on the topic he/she is going to cover, moreover the data that the trainer provides is cross-
checked and agreed upon before presenting to the customers in order to provide them with the
best services.
◊ April 2020 IFMP Newsletter Page 6 ◊
05 How to boost global resilience to COVID-19

No country alone can prevent a global risks like COVID-19.

Governments and businesses can confront these challenges by enhancing their resilience.

Leaders must apply systems-thinking to respond to COVID-19 and prepare for future risks.

More than 200 countries and territories have confirmed a case of coronavirus, and the number of
cases worldwide has reached more than 3,500,000. Like a massive storm front, the crisis threat-
ens not only to overwhelm health-care systems but also to collide in unpredictable ways with
childcare, education, employment, and transportation.

The question for national leaders is whether their countries can weather this unprecedented crisis
as it crosses borders. Addressing it requires accepting two fundamental axioms. First, global risks
such as pandemics are expressed at both the national and local level. Second, no country alone can
prevent such occurrences or mitigate their impact.

Unfortunately, many leaders do not seem to understand these rules. What they mostly agree on is
that unprecedented economic measures are needed to address a simultaneous demand and sup-
ply shock of this magnitude and duration. As citizens wait for these measures to be implemented,
each community is being tested.

Governments and businesses can confront these challenges by learning about – and strengthening
– their resilience, a term associated historically with stress testing materials or structures in engi-
neering. Following the post-2008 Great Recession, resilience emerged as a core concept for ad-
dressing global financial risks. For example, in the 2013 edition of the World Economic Fo-
rum’s Global Risks Report, resilience was defined as the capacity for “bouncing back faster after
stress, enduring greater stresses, and being disturbed less by a given amount of stress.”

The report also highlighted that as “[global risks can be expressed in many countries at the same
time, they can spread through countries that share borders, have similar fundamentals or depend
on the same critical systems.” The WEF proposed a novel framework for assessing financial resili-
ence. Using qualitative and quantitative indicators, the diagnostic tool functioned as an X-ray that
national decision-makers could use to reveal weaknesses in global risk readiness that were not
apparent through more traditional risk-assessment methods.

A crucial lesson for leaders (particularly at the local level) is that resilience is most important
when it comes to risks that are difficult to predict or, owing to a dearth of knowledge, manage ef-

◊ April 2020 IFMP Newsletter Page 7 ◊

05 Article
fectively. The most important lesson is to avoid examining these risks in isolation. Instead, leaders
should adopt the mindset of systems thinking, relying on a multi-layered process to determine
risks.

Leaders now need to think of their country as a system that is comprised of smaller systems and is
a part of larger systems that affect their country’s resilience. Global risks can have profound effects
on politicians’ ability to govern, business-government relations, the efficiency of government
spending and reform implementation, public trust, anti-corruption measures, and provision of ser-
vices to improve business performance.

◊ April 2020 IFMP Newsletter Page 8 ◊

05 Article

Unlike predicting stresses on a building in a hurricane, predicting those related to COVID-19 is a

Sisyphean task. Systems like health care or education are too complex for mathematical calcula-
tions to determine the risk and fallout. But systems thinking can provide a foundation to assess re-
silience by considering a system’s – and a country’s – robustness, redundancy, resourcefulness, re-
sponse, and recovery.

Some definitions are in order. “Robustness” means designing fail-safes and firewalls into a nation’s
critical networks and making decision-making chains of command modular to respond to chang-
ing circumstances. “Redundancy” involves having excess capacity and back-up systems so that the
core functionality of critical infrastructure and institutions can be maintained during disturbances.
“Resourcefulness” is the ability to adapt flexibly to crises so that industries and communities can
build trust and discover solutions to resolve unanticipated challenges. “Response” refers to the
ability to mobilize quickly in the face of crises, equipped with sound methods for gathering rele-
vant information from all parts of society and communicating it to others. “Recovery” is the ability
to regain a degree of normality after a crisis or event.

It is imperative that leaders increase resiliency. To do so, governments must ensure public trust in
order to act effectively and efficiently, and the private sector must work with governments to en-
sure local preparedness and response. Another way to increase resiliency is for civil society to be a
watchdog on corruption, wastefulness, and transparency. The WEF’s COVID Action Platform, in
partnership with the World Health Organization, is mobilizing stakeholders to protect lives and
livelihoods and enhance these efforts around the world.

For those countries around the world already facing serious COVID-19 outbreaks, the solidarity,
compassion and collaboration that we are witnessing are a testament to the power of local resili-
ency. For countries or communities that have not been hit hard so far, leaders must act now.

What is the World Economic Forum doing about the coronavirus outbreak?

A new strain of Coronavirus, COVID 19, is spreading around the world, causing deaths and major
disruption to the global economy.

Responding to this crisis requires global cooperation among governments, international organiza-
tions and the business community, which is at the centre of the World Economic Forum’s mission
as the International Organization for Public-Private Cooperation.

The Forum has created the COVID Action Platform, a global platform to convene the business com-
munity for collective action, protect people’s livelihoods and facilitate business continuity, and
◊ April 2020 IFMP Newsletter Page 9 ◊
05 Article
mobilize support for the COVID-19 response. The platform is created with the support of the
World Health Organization and is open to all businesses and industry groups, as well as other
stakeholders, aiming to integrate and inform joint action.

As an organization, the Forum has a track record of supporting efforts to contain epidemics. In
2017, at our Annual Meeting, the Coalition for Epidemic Preparedness Innovations (CEPI) was
launched – bringing together experts from government, business, health, academia and civil socie-
ty to accelerate the development of vaccines. CEPI is currently supporting the race to develop a
vaccine against this strand of the coronavirus.

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

Source:

World Economic Forum Global Risks Perception Survey 2019-2020

https://www.weforum.org

◊ April 2020 IFMP Newsletter Page 10 ◊

06 Terms of the Month
"Registrar" means a registrar, an additional registrar, a joint charge on the assets of the company or not (debt securities);
registrar, a deputy registrar or an assistant registrar, perform-
(c) loan stock, bonds, sukuk and other instruments
ing under this Act the duty of registration of companies;
creating or acknowledging indebtedness by or on behalf
[Companies Act, 2017] of a government, central bank or public authority
(Government and public debt securities) ;
"Regulations" means regulations made by the Commission
under this Act (d) modoraba certificates, participation term certificates and
term finance certificates;
[Securities Act, 2015]
(e) any right (whether conferred by warrant or otherwise) to
"Reinsurance" means a contract of insurance under which
subscribe for shares or debt securities (warrants);
the event, specified in the contract, contingent upon the hap-
pening of which, payment is promised to be made to the poli- (f) any option to acquire or dispose of any other security
cy holder there under, is payment by the policy holder of a (options);
claim or claims made against that policy holder under another
(g) units in a collective investment scheme, including units in
contract or contracts of insurance issued by that policy hold-
or securities of a trust fund (whether open‐ended or closed
er;
end);
[Insurance Ordinance, 2000]
(h) the rights under any depository receipt in respect of
"Secretary" means any individual appointed to perform shares, debt securities and warrants (custodian receipts); and
the secretarial, administrative or other duties ordinarily per-
(i) any other instrument notified by the Commission to be se‐
formed by the secretary of a company;
curities for the purposes of this Act, but does not include ‐
[Companies Act, 2017]
(a) futures contracts;
"Securities" in the case of listed instruments includes- (b) bills of exchange;
(a) shares and stock of a company shares); (c) promissory notes; and
(b) any instrument creating or acknowledging indebtedness (d) certificates of deposit;
which is issued or proposed to be issued by a company in-
cluding, in particular, debentures, debenture stock, loan
stock, bonds, notes, commercial paper, sukuk or any oth- [Securities Act, 2015]
er debt securities of a company, whether constituting a

Get Yourself Registered!!

15th May, 2020

Last Date for Registration for 31st May, 2020

Examination

◊ April 2020 IFMP Newsletter Page 11 ◊

07 Business and Economic Newsflash
April 2020 Inflation at 8.53%

Pakistan Bureau of Statistics (PBS) released April 2020 National CPI which came in at 8.53% on
YoY. This takes 10MFY20 average inflation to 11.22% YoY.

Analysis of Consumer Price Index (CPI) Base Year (2015-16)

The CPI on new base (2015-16) comprises of urban CPI and Rural CPI. The Urban CPI covers 35
cities and 356 consumer items. The Rural CPI covers 27 Rural Centers and 244 consumer items. In
the new base year (2015-16) National CPI for 12 major groups is also computed by taking
weighted average of Urban CPI and Rural CPI.

MONTHLY ANALYSIS (M.o.M)

April, 2020 over March, 2020 CPI National with base year (2015-16) for the month of April, 2020
decreased by 0.84% over March 2020. The Urban CPI with base year (2015-16) recorded a de-
crease of 0.68% while Rural CPI with base year (2015-16) recorded a decrease of 1.08%. (Details
are in the Monthly Review). CPI with old base year (2007-08) recorded an increase of 0.09%.

YEARLY ANALYSIS (Y.o.Y)

April, 2020 over April, 2019 CPI National with base year (2015-16) for the month of April, 2020
increased by 8.53% over April, 2019. The Urban CPI with base year (2015-16) recorded an in-
crease of 7.68% while Rural CPI with base year (2015-16) recorded an increase of 9.83%. (Details
are in the Monthly Review). CPI with old base year (2007-08) recorded an increase of 9.46%.

AVERAGE INFLATION RATE

CPI National with base year (2015-16) for the period July-April (2019-20) increased by 11.22%
over July-April (2018-19). The Urban CPI with base year (2015-16) recorded an increase of
10.73% while Rural CPI with base year (2015-16) recorded an increase of 11.98%. (Details are in
the Monthly Review). CPI with old base year (2007-08) recorded an increase of 11.55%.

◊ April 2020 IFMP Newsletter Page 12 ◊

07 Business and Economic Newsflash
Oil crashes, ends negative for the first time in history
US crude oil futures turned negative for the first time in history, ending at a stunning minus
$37.63 a barrel as traders sold heavily because of rapidly filling storage space at the key Cushing,
Oklahoma, delivery point.
Brent crude, the international benchmark, also slumped, but that contract was nowhere near as
weak because more storage is available worldwide.
The May U.S. WTI contract fell $55.9, or 306 per cent, to settle at a discount of $37.63 a barrel af-
ter touching an all-time low of -$40.32 a barrel. Brent was down $2.51, or 9pc to settle at $25.57
a barrel.
“The storage is too full for speculators to buy this contract, and the refiners are running at low
levels because we haven’t lifted stay-at-home orders in most states,” said Phil Flynn, an analyst
at Price Futures Group in Chicago. “There’s not a lot of hope that things are going to change in 24
hours.”
Physical demand for crude has dried up, creating a global supply glut as billions of people stay
home to slow the spread of the novel coronavirus.
Refiners are processing much less crude than normal, so hundreds of millions of barrels have
gushed into storage facilities worldwide. Traders have hired vessels just to anchor them and fill
them with the excess oil. A record 160 million barrels is sitting in tankers around the world.
US crude stockpiles at Cushing rose 9pc in the week to April 17, totaling around 61 million bar-
rels, market analysts said, citing a Monday report from Genscape.
The June WTI contract traded more actively and settled at a much higher level of $20.43 a barrel.
The spread between May and June at one point widened to $60.76, the widest in history for the
two nearest monthly contracts.
With US oil prices trading in negative territory, that means sellers have to pay buyers for the first
time ever to take oil futures. It’s unclear, though, whether that will trickle down to consumers,
who typically see lower oil prices translate into lower prices for gasoline at the pump.
“Normally this would be stimulative to the economy around the world,” said John Kilduff, partner
at hedge fund Again Capital LLC in New York. “It normally would be good for an extra 2pc on the
GDP. You’re not seeing the savings because no one is spending on the fuels.”

◊ April 2020 IFMP Newsletter Page 13 ◊

07 Business and Economic Newsflash
Investors bailed out of the May contract ahead of expiry later on Monday because of lack of de-
mand for the actual oil. When a futures contract expires, traders must decide whether to take de-
livery of the oil or roll their positions into another futures contract for a later month.
Usually this process is relatively uncomplicated, but this time there are very few counterparties
that will buy from investors and take delivery of the oil. Storage is filling quickly at Cushing in Ok-
lahoma, which is where the crude is delivered.
“Pricey shut-ins or even bankruptcies could now be cheaper for some operators, instead of paying
tens of dollars to get rid of what they produce,” said Louise Dickson, oil markets analyst at Rystad
Energy.
Prices have been pressured for weeks with the coronavirus outbreak hammering demand while
Saudi Arabia and Russia fought a price war and pumped more. The two sides agreed more than a
week ago to cut supply by 9.7 million barrels per day (bpd), but that will not quickly reduce the
global glut.
Brent oil prices have collapsed around 60pc since the start of the year, while US crude futures
have fallen around 130pc to levels well below break-even costs necessary for many shale drillers.
This has led to drilling halts and drastic spending cuts.
More data sparks global economic concerns
Weak global economic data also pressured prices. The German economy is in severe recession
and recovery is unlikely to be quick as coronavirus-related restrictions could stay in place for an
extended period, the Bundesbank said.
Japanese exports declined the most in nearly four years in March as US-bound shipments, includ-
ing cars, fell at their fastest rate since 2011.
Halliburton Co, which generates most of its oil business in North America, joined its larger rival
Schlumberger in taking impairment hits in the first quarter and issued a bleak outlook for North
America.

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

◊ April 2020 IFMP Newsletter Page 14 ◊

08 Urdu Glossary

Deduct ‫منہا‬
Deflation ‫غفلت‬
Depreciation ‫فرسودگی‬
Detect ‫پتہیلگائیی‬
Deviation ‫انحراف‬
Disbursement ‫ادایگی‬
Disclaimer ‫دستیبرداریی‬
Disclosure ‫انکشاف‬
Dissolution ‫تحلیل‬
Distributor ‫تقسیمیکار‬
Diversity ‫تنوع‬
Domestic ‫گھریلو‬
Duration ‫دورانیہ‬
Dynamic ‫متحرک‬

◊ April 2020 IFMP Newsletter Page 15 ◊

10
08
09 Quotes
Quotes and
and Jokes
Jokes
Feedbacks

Feedback on IFMP training

“The session was very informative and effective, special thanks to Mr Asim for his time and
help. ”
 Hammad Hassan — IFMP Member
 Attended IFMP — High Impact Persuasive Presentation Skills Training

‘With reference to the today's session, It was very informative. It would be very helpful if
more sessions of similar type are arranged. Thanks for enhancing my portfolio”
 Humayun Khalid — IFMP Member
 Attended IFMP — High Impact Persuasive Presentation Skills Training

“With reference to the context subject, today I attend training session of Mr. Raza Khan on
Public Speaking Skills and over all session was very beneficial and informative I really ap-
preciate IFMP for this initiative. ”
 Muhammad Ali — IFMP Member
 Attended IFMP — Public Speaking Skills - Speak-Inspire-Lead Training

“Public Speaking training by Sir Raza Khan was very helpful in overcoming hindrances we
face in day to day life. ”
 Muhammad Mateen — IFMP Member
 Attended IFMP — Public Speaking Skills - Speak-Inspire-Lead Training

◊ April
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 20.46 Beginning 12.30 13.55 Beginning 29,321.63

Ending 18.84 Ending 7.44 7.69 Ending 34,111.64

Change -1.62 Change -4.86 Change 4,790.01

Gold Silver

10 Grams 10 Grams

Beginning Rs. 85,034 Beginning Rs. 761

Ending Rs. 88,740 Ending Rs. 772

Change Rs. 3,706 Change Rs. 11

Foreign Exchange Rates

Interbank Market (buying)

GBP (£) EURO (€) USD ($)

Beginning Rs. 206.14 Rs. 182.05 Rs. 166.50

Ending Rs. 201.00 Rs. 175.00 Rs. 161.00

Change - Rs. 5.14 - Rs. 7.05 - Rs. 5.5

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

◊ April 2020 IFMP Newsletter Page 17 ◊