Powerpoint Presentation on Enron case

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COMSATS Institute of Info. Technology,
Sahiwal
TOPIC
Financial Crisis & Its Implications for the
Economy of Pakistan
PRESENTED TO:
Mr. SOHAIL AFZAL
(Ass. Professor)

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Group # 09
 M. Arbab jehangir (003)
 Waqar Ahmad (08)
 Muhammad Sajid (18)
 Hassan Ali (94)
 Jaffar ()
 Syed Ali Fahad (107) B3
 Rao Asim ()
PRESENTATION BY:

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WELCOME TO OUR PROGRAM
PRESENTATION FRAME
1.Global Financial Crisis
2.In Search of an Economic System
3.Regional Financial Problems
4.Pakistan‘s Economy

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1. Finance in Total Management
2. Financial Management Framework
3. Global Market Crash
4. Global Financial Crisis
1. GLOBAL FINANCIAL CRISIS

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1:1. FINANCE IN TOTAL MANAGEMENT
FIVE CONSTITUENTS OF MANAGEMENT
1. FINANCE
2. Marketing
3. Production
4. Personnel
5. Procurement

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1:2. FINANCIAL MANAGEMENT FRAMEWORK
A: CONVENTIONAL APPROACH
 Resource Mobilization
 Response Utilization
 Protection of Capital
 Distribution of Returns
B: MODERN APPROACH
 Maximize Returns
 Minimize Risks

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1:3. GLOBAL MARKET CRASH
1. October, 1987
Black Monday at NYSE
2. 1900-92
Credit Problem
3. 1997-98
Far East Economic Crisis
4. 200-2002
Worst Tech Burst on NYSE etc.

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1:3. GLOBAL MARKET CRASH
5. 2007: Sub Prime Mess
The Worst Decline in Housing Projects
5. 2008 Financial Market Debacle of USA
Domino Effect
5. IMF Role
Emergency Fund $200b

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Bank Q2, 2007
$bn
October 20,
2008 $ bn
%* Decrease
of 3 over 2
1 2 3 4
1. Citigroup 255 82 68
2. HSBC 215 169 21
3. J.P. Morgan 165 147 11
4. RBS 120 22 82
5. UBS 116 46 60
6. Santander 116 80 31
7. BNP Paribas 108 64 42
GLOBAL 14 BANKS: MARKET CAPITALIZATION
1:4 GLOBAL FINANCIAL CRISIS

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Bank Q2, 2007
$bn
October 20,
2008 $ bn
%* Decrease
of 3 over 2
1 2 3 4
8. Goldman
Sachs
100 46 54
9. Uni credit 93 41 56
10. Barclays 91 35 62
11. Societies
Generale
80 33 62
12. Deutsche
Bank
76 26 66
GLOBAL 14 BANKS: MARKET CAPITALIZATION
1:4 GLOBAL FINANCIAL CRISIS

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Bank Q2, 2007
$bn
October 20,
2008 $ bn
%* Decrease
of 3 over 2
1 2 3 4
13. Credit
Suisse
75 49 35
14. Credit
Agricole
67 30 55
Source: Edited from Bloomberg, October 30, 2008
* Calculated by Prof. Dr. Khawaja Amjad Saeed, Principal
Hailey College of Banking & Finance, University of the Punjab.
Lahore.
GLOBAL 14 BANKS: MARKET CAPITALIZATION
1:4 GLOBAL FINANCIAL CRISIS

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2. IN SEARCH OF AN ECONOMIC SYSTEM
1. System-Needed
2. Ismistic Approach
3. Fall of Capitalism
4. Rise and fall of Communism/Socialism
5. Mixed Economy
6. In Search of Islamic Economic System
7. Other Thoughts

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3. REGIONAL FINANCIAL PROBLEMS
1. SAARC
2. Global Share-Intra SAARC
3. Inter SAARC
4. Future Out look
5. Missing Opportunities

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4. PAKISTAN’S ECONOMY
1. Major Issues
1. Agriculture
2. Industry
3. Infrastructures
2. Implications
1. Unemployment
2. FX Reserves
3. FX Rate
4. Poverty
5. Economic Development -------------Social Justice
3. Federal Budget 2008-09
4. SBP 2007-08 Annual Report

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4.3 FEDERAL BUDGET 2008-09
A: NEEDED Rs.
Current Expenditure 1,493
ADP-2008-09 517
2,010
B: AVAILABLE 1,111
Shortfall 899

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4:3. FEDERAL BUDGET 2008-09
C: FINANCING
External Resources 300
Capital Receipts (net) 221
Bank Borrowing 149
Self Financing by Previews 125
Cash Balances of Previews 079
Privatization Proceeds 025
899

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4:3. FEDERAL BUDGET 2008-09
1. CURRENT EXPENDITURE
Debt Servicing 619
General Public Services 311
Defense 296
Economic Affairs 201
1,427
Others 66
1,493

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4:3. FEDERAL BUDGET 2008-09
2. CURRENT REVENUE
Indirect Taxes 619
Direct Taxes 496
Non Tax Revenue 428
1,679
Less: Transfer to Provinces 568
1,111

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3. ADP 2008-09
Federal Govt 400
Provincial ADPs 150
Other Development Expenditure 044
594
Less: Operational Shortfall 077
517
4:3. FEDERAL BUDGET 2008-09

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4:4. SBP 2007-08 ANNUAL REPORT
Particulars 2007-08 2006-07
1. Agriculture (A) 1.5%
(T) 4.8%
2. Agricultural credit 25.3%
higher
3. Industrial sector 4.6% 8.0%
4. Fiscal deficit
(2008-09 – 4.6% 4.8%-P, 4.7% A)
(A) 7.4%
5. Current Account deficit-of GDP
2008-09-6.2%-6.8% (p)
8.4%

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4:4. SBP 2007-08 ANNUAL REPORT
Particulars 2007-08 2006-07
6. CPI 23.9%
Food Inflation (in August 2008) 33.0%
SPI (end September 2008) 29.8%
WPI (end September 2008) 23.1%
7. Liquid FX reserves
December 13, 2008
9.16
Source: Extracted from IBP-Economic Letter, December 13, 2008, P.1

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