Islamic Finance

Rising global commodity prices increases cost of production in almost every sector especially in automobile. In Pakistan, high input prices forces car manufacturers to increase prices so that the burden of input cost rise can be transferred to consumers. Hike in automobile prices In Pakistan, auto makers are able to increase car prices when they want. To maintain dwindling margins, three local automobile manufacturers have increased their prices by 2 to 3 percent in the year 2011. Pak-Suzuki Motors has started the trend by increasing prices of cars from Rs 11,000 up to Rs 25,000 effective from February 1, 2011. It was followed by Indus Motor Company (IMC) as it pushed up the prices by Rs 20,000 to Rs 30,000 (2 to 3 percent) of all of its models except Toyota Corolla 2.0D Saloon and Saloon SR with effect from July 25, 2011. However, Honda Atlas Motors has also increased the prices of its various models by Rs 20,000 to Rs 25,000 with...

Economists are not certain that world economy is going to face another recession rather they say every market gets certain hiccups at the time of recovery. However, Pakistani market seems to be independent in their ups and downs over the long run, US downgrade and global stocks fall will not impact Pakistan stocks though certain shocks or hiccups can occur but on the whole Pakistan markets has no correlations with downgrading of US rating. Pakistan equity market seems to pick up again from Monday ahead of blue chips results. Standard & Poor's lowered United States (US) long term rating to AA+ on Friday mainly because of rising debt burden and budget deficit on back of political consequences that led US economy towards the brink of default. Though, US agreed to raise the debt ceiling in the start of the week but suspicions of recession and the rise of European crisis wiped $ 2.5 trillion off world stocks this week. Earlier on Friday expectations regarding globa...