Inflation Rates based on Sensitive Price Indicator (SPI), Consumer Price Index (CPI) and Wholesale Price

Index (WPI) are

Period SPI CPI WPI

1991-1992 10.54 10.58 9.84
1992-1993 10.71 9.83 7.36
1993-1994 11.79 11.27 11.40
1994-1995 15.01 13.02 16.00
1995-1996 10.71 10.79 11.10
1996-1997 12.45 11.80 13.01
1997-1998 7.35 7.81 6.58
1998-1999 6.44 5.74 6.35
1999-2000 1.83 3.58 1.77
2000-2001 4.84 4.41 6.21
2001-2002 3.37 3.54 2.08
2002-2003 3.58 3.10 5.57
2003-2004 6.83 4.57 7.91
2004-2005 11.55 9.28 6.75
2005-2006 7.02 7.92 10.10
2006-2007 10.82 7.77 6.94

               Note: Yearly Inflation rates for the year 1991-02 to 2000-01 are based on 1990-91=100 while

                     inflation rates for the year 2001-02 till to date are based on 2000-01=100
           

Index 2009-2010 2008-2009 2007-2008

CPI 10.26 24.65 7.85

SPI 9.03 32.05 10.87

WPI 3.44 30.12 9.88

Source: www.statpak.gov.pk

  
The inflation rates based on CPI, SPI & WPI in 2009-10 increased by 10.26%, 9.03%
and 3.44% over 2008-09 respectively. CPI, SPI and WPI in 2008-09 increased by
24.65%, 32.05% and 30.12% respectively over 2007-08 and in 2007-08 the CPI, SPI
and WPI increased by 7.85%, 10.87% and 9.88% respectively over 2006-07. An
analysis of data for three years for the same period indicates that SPI & WPI in 2009-10
were lower as compared to last two years but CPI was higher in 2008-09 as compared
to 2007-08.
 INTRODUCTION:

With the development of Pakistan's economy during the past decade and the
privatization, deregulation and other industrial policies of the Government of
Pakistan, the economy received a boost after a prolonged period of sluggish
economic activity over the '70s and '80s.  

The first leasing company was established in 1985.

  The growth of the leasing industry in Pakistan
initially lacked momentum due mainly to a general
lack of awareness regarding its nature and benefits.
From 1985 to 1997, 32 leasing companies were
incorporated with the minimum capital of Rs. 100
million. The minimum capital requirement was
raised to Rs. 200.00 million by June 2000. This lead
to mergers and acquisition. Thereby the number of
leasing companies is reduced to 27. In addition Nine
leasing Modarabas & 3 Investment Banks are
actively involed in leasing business. In the mid-nineties annual average growth
was in the range of 30 - 35 percent. The real growth in the leasing came in the
period 1992 - 95, when over 20 leasing companies were set up. In October 1995,
leasing companies' paid-up capital was Rs.7.572 billion, with market
capitalization of Rs.6.0 billion as on 30-06-2002.

Leasing is not a very old phenomenon in Pakistan, but has gained acceptance very
rapidly. The reasons are: growing awareness, ease in obtaining the facility
compared to conventional forms of financing (bank loans), inherent tax benefits,
simple procedure and flexibility to cater to the needs of the customer. Profit is
earned through the use of the asset, not the ownership. In leasing, the ownership is
vested in the leasing company and in return for rental payments, the 'lessee' has
virtually unrestricted use of the asset. Leasing is a medium to long term hire of
assets. It effectively increases a company's total availability of capital and leaves
other sources of funds available for more profitable usage.
  
The leasing sector in general has experienced commendable growth over the years
and has adequately proved to be an alternative source of finance. In case of an
expected economic revival, the overall Leasing Sector is likely to regain its initial
momentum particularly in the backdrop of Islamization of the economy effective
fiscal year 2002 - 2003 due to its inherent potential of being in close conformity to
one of the permissible modes of financing under Shariah. However, in order to
improve the near future demand prospects of Leasing Sector in particular, the
leasing companies need to develop innovative products along with encouraging
leasing of plant, machinery and equipment relating to priority sectors of the
economy including energy (CNG), IT (Computer hardware, software and
accessories), textiles, engineering etc subject to their intrinsic value. Agriculture
sector is receiving special focus. The presence of commercial banks and DFI's in
the lease market has impacted the leasing company's margin, but their capability
of offering large ticket leasing has enhanced the acceptability of leasing options.   

Leasing: ASKARI LEASING LIMITED - Analysis of Financial

Statements Financial Year 2004 - Financial Year 2009

OVERVIEW  (January 05, 2010) : Askari Leasing Limited (ALL) was incorporated in Pakistan as a
public limited company on August 1, 1993 and was granted certificate of commencement of
business on November 3, 1993 with a capital base of Rs 100 million. As of June 30, 2008, its total