We have some serious issues on our mind this week. Legacy banks are trying to keep up with all of the changing fads in the banking industry and there are questions being raised about debt servicing after the announcement of the new IMF program. Ariba Shahid brings you the woes of banking, CEO salaries, and more in this week’s social media roundup.
To all the fat lazy incumbents looking at tech startups: pic.twitter.com/0oj28q0vnd
— sameer (@sameerchishty) February 12, 2022
Things are heating up. Legacy banks, logistics services, and brick and mortar businesses need to be on their toes considering the rapid pace at which things are going. As Sameer rightly points out, being overtaken may not be that far.
Impressive fiscal performance, despite higher development spending from last year Rs574bn vs Rs457bn and lower non-tax revenue on account of huge sacrifice Rs200bn loss of petroleum levy from last year. The deficit came in at 2.1% of GDP & posted primary surplus at 0.1% of GDP https://t.co/HSutFEODNV
— Muzzammil Aslam (@MuzzammilAslam3) February 10, 2022
The IMF focuses more on the primary balance than the budget balance. The budget deficit and primary deficit are two distinct things. Primary deficit is when the government expenditure excluding debt servicing is more than total government revenue. The primary surplus is essentially used as a message that the country has attained market maturity and does not need to borrow to fully service its debt. However, despite this one has to wonder about how public debt is managed in the long run as it is not limited to the primary deficit.
I've heard "sir link down hai" at Pakistani Banks for at least 15 years and it still hasn't gotten old. Entire empires have risen and fallen and yet "link down hai" still persists. They were downing the link before I was born and will be downing the link long after I die
— Lawyerman™ (@lawyerman_ktk) February 7, 2022
Banks in Pakistan need to realize that people already resent walking into a bank. The link being down makes it all the more worse.
Met two old colleagues in recent days, both were grade 17 equivalent. One has a low paid job about 12 km frm his residence, walks to n frm work to save on transport cost. Other is unemployed, reduced to one meal a day. This is the phenomenon of middle class poverty.
— Dr. Kaiser Bengali (@kaiserbengali) February 8, 2022
There is the inflation that you see in numbers and stats, and there is the inflation you see through lifestyle changes. Hits hard sometimes.
Dog food bag i was buying for Rs. 10,000 till Dec 2021 is now Rs.17,000.
Quite a price hike.— Sohail Shahzad (@Suhail_Shahzad) February 3, 2022
Having a pet in today’s world is expensive especially when dog and cat food is primarily imported. Where is the import substitution at?
What? You don't have to show your grandparents nikah-nama????? Slipping up, eh? https://t.co/FZfZcpivVl
— Kamran Shafi (@KamranShafi46) February 7, 2022
Jumping through hoops just to get some foreign currency only makes it easier for a grey market to operate. Ridiculous requirements do not put off people from getting what they want, instead it makes it incentivizes one to find other means.
To be fair, this is less than average package for a senior executive in any profession in the west.
If someone reaches pinnacle of his/her profession then pay would be multiples of that amount abroad.
He is sacrificing a lot for his country and we all must thank him for that. https://t.co/Unpyy0QuvY
— Rasheed Narejo (@narejo) February 11, 2022
Rs222,422,000 is the yearly compensation the CEO of one of the largest banks received in 2020. The fact is, the salary of an individual should be in line with their experience, credentials, and the position they are settling in at. It makes very little sense for minimal salaries to be glamorized.
“Looks like Russia is going to invade Ukraine.”
Aerospace & Defense stocks: pic.twitter.com/DTRFU2pia8
— HighYield Harry (@HighyieldHarry) February 11, 2022
The stock market is ruthless. But hey, follow the money.
I hope these trucking startups don’t start building their own fleets in the name of “supply chain assurance” much like these farm-to-table startups might co man template vertical farms.
Don’t compete with the little guys, raise them up!
— Raza Matin (@raza_matin) February 11, 2022
It is important to stand up for the little guy. Cutting them off just ruins the whole narrative startups put up.
One of the things that contributes to confusion when money is manipulated is that big numbers are difficult for our brains to process and compare. pic.twitter.com/5vPHWIQSdP
— Jeff Booth (@JeffBooth) February 11, 2022
Seeing is believing. And yes, visualizing numbers is important for context, especially when talking about money.
"Used-car prices continued to drive overall inflation, rising 40.5% in January from a year ago."@rogueonomist like Pakistan, used cars becoming a solid hedge against inflation in the US…
— Uzair Younus عُزیر یُونس (@UzairYounus) February 10, 2022
Gone are the days people keep gold stashed away. Your new inflation hedge is the car you bought in the late 2010s.
RDA flows continue at a decent pace but a slowdown is evident. New accounts opened are also slowing down.
SBP is considering to increase rates on NPC, which could stimulate flows.
SBP is actively marketing #RDA and closely monitoring the progress, engaging frequently with banks pic.twitter.com/3xdr4KwDzO
— Fahad Rauf (@analystfahad) February 7, 2022
The growth in new accounts is slowing down. The SBP, however, has encouraged banks to carry on with marketing activities in order to encourage people to open up accounts. As for NPC, there is a lot that is happeneing behind the screen.
1. What really is Raast?
A simpler way to send & receive money. You will not need to ask for, or share, bank a/c details. Once you link your mobile # with your bank a/c, you can ask people to send you money via Raast, to your mobile #. Money will deposit into yr linked bank a/c.
— Gulraiz (@gulraizkhan) February 9, 2022
There’s a lot to be understood about Raast, this thread explains it well.
There is no issue with govt State Bank salary but there should be increase daily wages of labor as he can’t survive in these days.
If you want to have best person in the required position, you have to pay as per industry standards. In Pakistan, any person in government position getting high salary is seen dubiously.