It has been a long, long week. The Senate Elections and the screws that may or may not have been cameras (they were) have given both the media and the meme makers on social media a field day, and the vicious propaganda against Aurat March has had activists scrambling to try and stop people from getting hurt.
On the sidelines, a lot else was happening that may not have gotten the attention it deserves. Pakistani freelancers were up in arms after another method of receiving payments for them was taken away in the same week that TikTok was banned, the stock market went through a serious dip under shady circumstances, and women’s day sparked conversations about financial inclusion for women.
Profit’s reporter Ariba Shahid analyses the business and economic highlights from Pakistani Twitter this week.
- The woes of speculation are the woes of regulation
I have no issues with stock market speculation or speculators. It is a norm in any stock market. In a way it helps in price discovery. However, I have serious issues when there is no level playing field or rules of the game are abused by a few.
— Najam Ali (@NajamAli2020) March 12, 2021
The stock market, as we like to keep reminding people, is not a reliable indicator of the economy. It is, after all, a glass palace made out of risks and speculation. And as Najam Ali (NajamAli2020), the CEO of Next Capital, pointed out in a tweet this week, speculation is not what is bad, but it is the absence of a level playing field that is the problem.
Najam Ali’s tweet came out only a day after he went on the night time talk show, Aj Kamran Khan Kai Saath, to discuss the recent dip in the Pakistan Stock Exchange (PSX). Mr Ali managed to get Kamran Khan out of his achkan long enough to be able to declare live on the show that the recent dip was not a natural occurrence, but a synchronized sell-off that was coordinated. He urged the regulator to look into it. Once again, Ali’s tweet on the matter afterwards clarified that speculation is a norm the stock market is built on and that he does not oppose it. Speculation in stocks is not something new. In fact ups and downs in the stock market, much like this week are speculative in nature over what people anticipate about the future. These speculations and anticipations do not always translate into reality. It is simply the lack of scrutiny that is being criticized.
- The charms of I.I Chundigar road
Just these three towers on this road, UBL, HBL & MCB, represent a combined profit of PKR 137b in 2020. They deposited 40% of that, ~55b in tax to the govt. On weekdays, the divider on this road is the nylon chaarpai straps. I think we can do better. pic.twitter.com/atLomqp3BW
— Gulraiz Khan (@gulraizkhan) March 8, 2021
- I Chundrigar road in Karachi is often referred to as the Wallstreet of Pakistan. We like to think of it as a one of a kind street. Gulraiz Khan (@gulraizkhan, the head of design and customer experience at a noted bank, does too. As he points out in his tweet accompanied by a surprisingly stirring picture of the iconic road and some of its most noted occupants, Khan makes a case for the historicity and prestige of the road, even if he makes an uncalled for dig at charpai straps.
What we do like is that he agrees that I. I. Chundigar road has its own personality. “Let us also please stop calling it Pakistan’s Wall Street. It is actually much larger and more interesting than Wall Street. Far more diverse heritage and living fabric. If you wanna call it anything, call it Mecklaroad, as it has been lovingly called for generations.” Despite that, the facilities provided to people working or commuting to the street remain minimal such as the partition between the up and down side of the road. While UBL, HBL, and MCB earn from across the country, their headquarters in Karachi and on this road results in three buildings within a km of radius depositing approximately Rs 55bn of taxes.
- Bancassurance
Bancassurance is peak mis-selling, and has been happening for years now. The regulator either turns a blind eye, and can’t figure how it actually works. Banassurance mostly fleeces senior citizens, and those who are vulnerable.
— Ammar Khan (@rogueonomist) March 12, 2021
Bancassurance can be termed as a nuisance considering the fact that there is no risk profiling and unaware pensioners and citizens often fall into the trap with little to no knowledge. Featured once again in Profit’s roundup, our columnist Ammar H Khan (@rogueconomist) comments on the fact that insurance companies are negligent with funds and operate much like a hedge fund. Keep an eye out for his threads.
- Freelancers assemble
Keep in mind export income is tax free. Basically the government cannot create jobs & freelancers worked around that. Government can’t create ease of transfer of funds. Freelancers worked around that & created the fastest growing billion dollar+ export category.
FBR: SCAM!!! https://t.co/oV48fXg5JK— H U Khan (@Huk06) March 10, 2021
With the FBR annoyed at Payoneer for being an alternative to Paypal to bring in money to Pakistan, freelancers will be back to square one trying to figure out how to get paid. Remember, the Imran Khan government does not just want a ‘Digital Pakistan,’ but has directly made promises to freelancers to help them in receiving their payments. That is also why the government has often talked about bringing paypal to Pakistan. Now the chances of that happening seem slim, so the only question remains, why ban a platform that was doing that job? A bird in the hand is better than two in the bush, and it is definitely better than no bird at all. As bystanders, we could also say the chances of paypal may be slimmer if there is more resistance against Payoneer. H U Khan (@Huk06) takes a poignant dig at the banning.
- Financial inclusion for women
https://www.linkedin.com/posts/activity-6774611512951619584-HWU_
Halima Iqbal, Founder and CEO at Oraan, comments on the need for equal opportunities for female financial inclusion and how it is a dire need for the progress of women and the nation as a whole. Moreover, she highlights the work Oraan is doing in regards to this. Women in Pakistan are now a more visible part of the economy than ever before, and are being recognised for their labour, and the using the fruits of their work to be a huge buying force.
- Women’s day panels
A women’s day panel at Daraz was organized by Daraz. Jehan Ara, Nadia Patel, Gangjee Arusha Imtiaz, and Annum Salman were present. The panel talked about women empowerment and celebrated successful women. Once again, while panels like these are important for inclusion, they also have a real world, economic impact.
