Pakistan Studies

Course Code: PST-321 Credit Hours: 2(2-0)

Introduction/Objectives:
 Develop vision of historical perspective, government, politics, contemporary Pakistan, ideological
background of Pakistan
 Study the process of governance, national development, issues arising in the modern age and posing
challenges to Pakistan.

Course Outline
1. Regeneration of the Muslim Society in sub-continent and causes of decline of Muslim Rule.
2. War of Independence 1857 and its impacts upon the politics of South-Asia.
3. Sir Syed Ahmad Khan and Aligarh Movement:
i. Educational Services.
ii. Political Services.
iii. Rational Interpretation of Islam.
4. All India Muslim League:
i. Multiple approaches and causes of the formation of Muslim League.
ii. Objectives of the party.
iii. Comparison of the policies of All Indian National Congress and All India Muslim League.
iv. Politics of Muslim League after the creation of Pakistan.
5. Luckhnow Pact 1916,high water mark of Hindu-Muslim Unity.
6. Khilafat Movement:
i. Khilafat as an institution.
ii. Hindu-Muslim Unity.
iii. Role of Gandhi.
iv. Emergence of Muslim Ulma in Indian Politics.
v. Causes of the failure and impacts of the movement.
7. Iqbal’s Address at Allahabad 1930 and political thoughts of Ch.Rehmat Ali.
8. Congress Ministries.
9. Pakistan Resolution 1940.
10. Muhammad Ali Jinnah:
i. Jinnah’s role in Indian politician.
ii. As a Governor General.
11. Initial problems and constitutional development in Pakistan.
12. The study of constitutions of Pakistan (1956-1962-1973)
13. Political culture of Pakistan.
14. Foreign Policy of Pakistan:
i. Major determinants and objectives.
ii. Overview.

ASSIGNMENT TOPICS
1. Ideology of Pakistan; In the light of statements of Quaid-e-Azam and Allama Iqbal.
2. Development of the Legislative Council (1861-1892).
3. The Partition of Bengal.
4. The Simla Deputation.
5. Wavell plan/Simla Conference and the Cabinet Mission Plan.
6. 3rd June plan 1947, The Radcliffe Award and its results.
7. Major Political Developments (1857-1946)
8. Constitutional Issues and constitution making (1947-1956)
9. The problem of the new state; The objective Resolution (1949)
10. Geography, Land, Boundaries and neighborhood.
11. Natural Resources, Agriculture.

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 12. Industries in Pakistan, Industrial Development in Pakistan.
13. Education in Pakistan, Educational development in Pakistan.
14. Pakistan and Muslim world.
15. Educational and Social Institutions of the Muslims (Darul Uloom Deoband, Nadvatul Ulama; Lucknow,
Anjuman-e-Himayat-e-Islam; Lahore)
16. Muslim Leader Nawab Mohsin-ul-Mulk his participation in Pakistan movement.

17. The United Nation, United Nations Reforms and International Co-0peration:
i. International Financial Institutions (IFIs).
ii. South Asian Association for Regional Co-operation (SAARC).
iii. Economic co-operation organization (ECO).
18. Culture and Heritage of Pakistan.
19. Festivals of Pakistan.
20. Forts in Pakistan.
21. Kalaash Valley,History,Culture,Traditions.
22. Culture & Custom of Marriage in Pakistan.
23. Family structure, values & custom in Pakistani Society.

RECOMMENDED BOOKS
1. Saeed, Khalid Bin, Pakistan the Formative Phase.
2. Qureshi, I.H. Struggle for Pakistan, Karachi: Oxford, 1995.
3. Mahmood, Safdar, Pakistan Political Roots and Development, 1947-1999, Karachi, Oxford, 2000.
4. Afzal, M. Rafique, Political Parties in Pakistan 1947-1958, Islamabad, NIHCR, 2002.
5. Choudhry, G.W. Constitutional Development in Pakistan, London, second Edition, 1969.
6. Ali, Ch. Muhammad, The emergence of Pakistan, Lahore, 1973.
7. Sattar, Abdul, Pakistan’s Foreign Policy 1947-2005; A concise history;
Foreword by Agha Shahi. Oxford.
8. Sethi, Huma Naz, The Environment of Pakistan, New Edition 2010, Peak Publishing.
9. Hayat Sikander, The Charismatic Leader.
10. Hameed, Abdul. Muslim separation in India.
11. Dr. Qalb-i-Abid. Jinnah: The second world war and the Pakistan movement

Introduction to Banking
Course Code: BBF-312 Credit Hours: 3(3-0)

Learning Outcomes
On completion of this course, the student will be able to:
1. Knowledge and Understanding
After successfully completing the course the student will
1. have a knowledge and understanding of the roles and functions of different types of banks, of the functions of a
central bank, of the structure of the banking industries in the EU, US and of common features of banks in emerging
markets and of the corporate governance of banks;
2. have a knowledge and understanding of a bank’s balance sheet and of how a bank manages its liquidity and its
capital ;
3. have a knowledge of corporate governance arrangements in banks and of ethical issues in banking
Course Contents

  Introduction to Banking
  A bank's income statement
  Fractional Reserve Banking

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   Multiplier effect and the money supply
  Introduction to Bank Notes
  Bank Notes and Cheques
  Giving out loans without giving out gold
  Reserve Ratios
  More on Reserve Ratios
  Introduction to leverage
  A reserve bank
  Treasuries
  Open Market Operations
  Fed Funds Rate
  Why target rates vs. money supply
  Big Picture Discussion
  The Discount Rate
  Repurchase Agreements
  Federal Reserve Balance Sheet
  Fractional Reserve Banking - Introduction
  Fractional Reserve Banking - Deposit Insurance
  Fractional Reserve Banking - Big Picture
  LIBOR
 KIBOR
 Corporate governance in banks, effects on performance. Ethics in banking.

Financial Accounting-II
Course Code: BBF-308 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

• Preparation of financial statements of companies in accordance with statutory requirements of
Companies Act and International Accounting Standards (IAS)
• To deal with business combinations of two or more business entities. It involves preparation of
financial statements for group of undertakings, for publication in accordance with International
Financial Reporting Standards (IFRS)
• To deal with accounting issues of amalgamation, absorption and reconstruction.
• Application and selection of accounting techniques and procedures to specific circumstances like
leases, branches, departmental stores, consignment, joint venture and construction contracts.

COURSE OUTLINE

Ratio Analysis, Debenture Valuation and Right Issue

Preparation of final accounts under Companies Ordinance 1984

• Companies Ordinance 1984, Fourth Schedule.

• General, Trading Account, Profit and loss Account, Profit and loss appropriation account,
• Balance Sheet and treatment of certain items in preparing Companies Financial
Statements like dividends, reserves, excise duty and sales tax, long term loans and current
maturity, issue of shares, allowances for bad debts, rectification of errors, workers profit
participation fund, worker‘s welfare fund, bank margins and guarantees.

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Consolidated Financial Statements, IAS27.

• Prepare Consolidated Income Statement and Balance Sheet of undertakings.

• Treatment in Consolidated Financial Statements of Minority interest, Pre and Post acquisition
reserves, goodwill, dividends, bonus shares, intra group transactions, prefereance shares,
debentures and mid year acquisitions.

Business Combinations

• Amalgamation, Absorption and Reconstruction.

Departmental Accounting

• Advantages of departmental accounts.

• Departmental accounts when separate set of books are maintained and when all departments
are kept together.
• Allocation of departmental expenses.
• Inter departmental transfers. Cost based transfer price, market based transfer price.

Branch Accounting

• Types of Branches, Debtor System, Stock and Debtor system,

• Sale of goods above and below invoice price,
• Final account system, whole sale and retail profit at branch.

Joint Venture and consignment

• Features of a Joint Venture, methods of maintaining accounts, abnormal and normal losses
• Valuation of unsold stock.
• Cost price method and invoice price method
• Advance made by consignee.

Accounting for Construction Contracts and IAS-11

• Basic concepts and rules

• Contract revenues and costs
• Profit and loss recognition
• Percentage completion method- cost to cost method
• Accounting entries and financial statement disclosures
• Work certified and uncertified

Recommended Texts:

• Javed H. Zuberi , ―Advanced Accounting”, 2009, Petiwala Book Depot.

• Gupta, R.L. &Swamy, M. Radha, ―Advanced Accounting”, Sultan Chand & Sons
• Shukla M.C &Grewal, T. S , ―Advanced Accounts” Volume 1 and 2, 15th Edition. Sultan
Chand & Sons.
• International Financial Reporting Standards (IFRSs), London United Kingdom.
• M.A Ghani Advance Accounting

Introduction to Statistical Theory

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Course Code: STA-351 Credit Hours: 3(3-0)

COURSE OBJECTIVES:

The main objectives of the course are to enhance students competency in application of statistics to solve
business management problems and to improve their level of quantitative sophistication for further advanced
business analysis.
INDENTED LEARNING OUTCOMES:
At the conclusion of this course, the student will be:
1. Data description and data presentation in a business environment;
2. Measures of Central Tendency
3. Measure of Relative Dispersion
4. Use of index numbers
5. Basic probability concepts and probability distributions as an aid to business decision making.
COURSE CONTENTS:
Introduction, Data Analysis, Data Summarizing: Frequency Distributions, Data summarizing: Measures of central
tendency and variability, Measures of Dispersion, Moments skew ness, Simple linear regression and correlation,
Index numbers. Probability, Discrete probability distributions, The normal distribution and other continuous
probability distributions

SUGGESTED READINGS:

1. Earl K. Bowen & Martin starr: Basic statistics for Business and Economics
2. Prof. Sher Muhammad Chaudhry: Introduction to Statistical Theory, part-1

Introduction to Business
Course Code: BBF-407 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

 To enhance students to full range of functions of business organization

Course Outline

BUSINESS

• SCOPE, Importance and Functions, Enterpreneminal qualities of Businessman.

• Business environment and social responsibility.
• Role of business in economic progress of the country
• Problems of business.

FORMS OF BUSINESS ORGANIZATION

• Sole proprietorships – Nature, Advantages and Disadvantages

• Partnership, Classification, Advantages and Disadvantages, Rights, Duties and Liabilities of Partners,
disoluation of partnership.

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 • Joint Stock Company, Types – Chartered Statuary and Registered Formation – Memorandum of
sociation, Articles of Association, Prospectus, Capital Management, Meetings and Winding up
Features, Merits and Demerits, Management of the Companies.

3. COOPERATIVE OWNERSHIP AND BUSINESS COMBINATIONS

• Types of Cooperatives, Advantages and Disadvantages.

• Business Combination, Meaning, Types and Forms causes and purposes, Advantages and Disadvantages.

4. FINANCE

• Definition, Components, Importance, Kinds and Sources

• Long Term and Short Term Financing.
• Some Important Financial Institutions.
• Stock Exchange and Commodity Exchange, Nature, Role and Significance.
• Risk & Insurance, Protection against Risks, Importance and Types of Insurance, Types of Risks.

5. MARKETING

• Process of Marketing, Definition, Functions and Scope Approaches to the Study of Marketing.
• Marketing Mix for Physical Goods and Service Products, Importance.
• Channels of Distribution for Consumer Good and Organizational Goods.
• Marketing Communication and Promotion, Advertising, Personal Selling, Sales Promotion, Public
Relationing, Packaging.

6. TRADE

• Wholesale and Retail, Meaning, Importance, Functions, Advantages and Disadvantages.

• Foreign Trade, Imports and Exports, Role in Economic Development of the Country.

7. PHYSICAL FACTORS

• Selecting Business Location, Factors Influencing Locations, Small Business, VS Large Business
• Purchasing and Inventory Control Coordination of Purchasing with Sales, Organization of Purchasing
Department, Centralize vs. Decentralize Purchasing, Purchasing Policies and Procedure Inventory Control.

8. THE PERSONEL DEPARTMENT

• Employment Division, Recovering, Placement, Promotion.

• Wages and Salary Section, Analysis & Job Classification, Pay Scales.
• Training Program, Apprentice, Supervisory etc.
•
Reference Books
1. Rober C. Appleby, Modern Business Administration
3. Muhammad Irshad, Introduction to Business, Naveed Publication Lahore
4. Khalid MehmoodCheema and Syed MobinMahmood, Introduction to Business & Co Lahore.

Semester III

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 English for Employment
Course Code: ENG-611 Credit Hours: 3(3-0)

COURSE DESCRIPTION/OBJECTIVE
This course aims at helping students develop a positive, constructive and practical approach to effective written and
oral communication in business and professional settings. Audience awareness, developing a design, handling
questions and answers, personal presence, style and body language are some other aspects that will be discuses

INDENTED LEARNING OUTCOMES

By the end of this course it is expected that the student will be able to:
1. Communicate in clear, concise correspondence to meet the diverse needs and multiple purposes of business and
social communication situations. Presentations, interviews, meetings and conferences are an integral part of any
professional environment. Well-prepared and well-executed presentations leave an indelible impression on
superiors, peers and subordinates alike.
2. Students will learn to use graphics, audio-visual aids and audience handouts in an effective manner.

COURSE CONTENT

 Effective Communication in Business

 Importance and benefits of effective communication
 Components of communication
 Concepts and problems of communication
 Non-verbal communication
 The 7 C’s of Effective Communication
 Completeness
 Conciseness
 Consideration
 Concreteness
 Clarity
 Courtesy
 Correctness
 The Process of Preparing Effective Business Messages
 Five planning steps
 Strategies for Successful Speaking and Successful Listening
 Strategies for improving oral presentation
 Strategies for reducing stage fright
 Strategies for improving listening skills
 Strategies for Successful Informative and Persuasive speaking
 Purpose of informative and persuasive speaking
 Kinds of informative and persuasive speaking
 Audience analysis for informative and persuasive speaking
 Organization for informative and persuasive speaking
 Support for informative and persuasive speaking
 Strategies for Successful Interpersonal Communication
 Dyadic communication
 Interviewing
 Telephoning
 Dictating
 Confidence Building: How to make PowerPoint Presentation
 Strategies to build confidence

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  Techniques to make Power Point Presentation
 Making Oral Presentation
 Purpose in oral presentation
 Comparing written and oral messages
 Planning strategies for your presentation
 Choosing information to include in your presentation
 Organizing your information.
 Delivering an effective presentation
 Handling questions.
 Making group presentations
 Public Speaking And Oral Reporting
 Making formal speeches
 Determination of presentation methods
 Consideration of personal aspects
 Audience analysis
 Appearance and body actions
 Use of visual aids
 Additional Oral Communication Activities
 Conducting and participating in meetings
 Techniques for participating in a meeting
 Interviewing people
 Guidelines for the interviewee
 Dictating letters and reports
 Using the telephone
 Non-Verbal Communication
 Classification of non-verbal communication
 Kinesics
 Proxemics
 Time language
 Paralanguage
 Physical context
 Writing Covering Letters
 Writing Resume/CV

RECOMMENDED TEXTBOOKS
1. Murphy, Effective Business Communication, 7th edition, Hand Outs.
2. Stuart Sillar (1988) Success in Communication, Jhon Murray Publishers

Introduction to Management
Course Code: BBF-401 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

• This is a rudimentary course for the students of business administration.
• The focus of attention will be given to learning fundamental principles of management and of managing
people and organization in a historical as well as contemporary world.
• Students are expected to develop analytical and conceptual framework of how people are managed in
small, medium and large public and private national and international organizations.
Course Contents:

• Introduction, overview and scope of discipline

• The evolution and emergence of management thought
• Management functions
• Planning concepts, objectives, strategies and policies

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 • Decision making
• Organizing; departmentalization, line/staff authority, commitments and group decision making
• Staffing: principles of selection, performance, career planning
• Leading: Motivation, leadership, communication
• Controlling: the system and process and techniques of controlling
• Management and Society: future perspective
Text Books:

• Stephen P. Robins, Mary Coulter: Management

• H. Koontz Odonnel and H. Weihrich: Management
• McFarland: Management: Foundation and Practice
• Robert M. Fulmer: The New Management

Business and Commercial Law

Course Code: BBF-402 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

At the conclusion of this course, the student will be:

• To provide basic philosophy of conventional Business Law so to enable a student to critically analyze these
laws with those present in other legal system.
• At the conclusion of this course, the student will be:
• To know about the basic concepts of conventional business law.
• To know about basic aspect of conventional Business Law
• Can determine that how business can be made profitable in the eyes of philosophy of such Laws
• Can compare the conventional Business Law with other conventional business laws

COURSE CONTENTS

• Definition and classification of Laws, over view of general and commercial terms, Business Entities such
as sole proprietorship, partnership and joint stock companies.
• Definition of a contract, Essential elements of a valid contract, Legal provision governing offers
,communication, acceptance or counter offer, consideration, agreement, lawful purpose, parties to the
contract and their intent to create contractual obligations.
• Rights and Duties of parties, specific performance of the contract , Discharge of the contract, Breach of the
contract and remedies, illegal, voidable and void contracts.
• Definition and Essential Elements of a partnership, partnership deeds, rights and duties of partners,
partnership distinguished from sole proprietorship and the companies.
• Individual and Joint liabilities of the partners for the firm debts, principles governing ownership of the
firm‟s asset and distribution of profits, implied and specific authority of the partners, principle of holding
out, Dissolution of the partnership.
• Concept of limited liability and Juristic person Requirement and process of incorporation, Effects of
incorporation, types of joint stock companies by nature and formation, Ownership and management of the
companies.
• Rights of the shareholders, Rights ,power and duties of the Board of Directors, Statutory provisions
governing the election of Directors, meeting of the shareholders and the board of Directors, disclosure
requirements and the financial statements.

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 • Listed vs. non listed companies, advantages and disadvantages of listing, listing requirements of Stock
Exchange. salient provision of Code of Corporate Governance, Brief discussion of Securities and Exchange
Commission Of Pakistan as the corporate watch dog.
• Definition, Nature of the contract of sale, conditions and warranties, Definition ,Nature of the contract of
sale condition and warranties.
• Transfer of property ,performance of the contract of sale, Delivery of the goods, Unpaid seller and auction
sale, Consignment basis, Delivery against advance payment ,supply against letter of credit, types of letter of
credit.
• Laws relating to indemnity, guarantees, bailment, hyphothetication, pledge and Mortgage, agency
agreement.
• Negotiable instruments Act ,Definition ,characteristics of Negotiable instruments.
• Bill of Exchange and promissory Notes, parties to instrument, negotiation and endorsement, liabilities of
the parties, payment and discharge of liabilities.

RECOMMENDED BOOKS
1. Dr. KhwajaAmjadSaeed, Mercantile and Industrial Laws in Pakistan Latest Edition, Institute of Business
Management.
2. Nazir Ahmad Shaheen, Practical approach to the Companies Ordinance, Latest Edition, PLD.

Introduction to Marketing
Course Code: BBF-410 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

By the end of this course it is expected that the student will be able:

• Understand the marketplace and the consumers.

• Understand the elements in marketing mix and their application in marketing decisions.
• Outline the functions of marketing communication.
• Discuss social responsibility and ethics in marketing.
• Understand the importance of customer relationship in marketing and the creation of customer value.
COURSE OUTLINE
• Marketing in Changing World.
• Creating Customer Value and Satisfaction.
• Strategic Planning and the Marketing Process.
• Global Marketing Environment.
• Marketing Research and Information Systems.
• Consumer Markets and Consumer Buyer Behaviour.
• Business Markets and Business Buyer Behaviour.
• Marketing Segmentation, Targeting, and Positioning for Competitive Advantage.
• Product and Services strategy.
• New Products Development and Product Life-Cycle Strategies.
• Pricing Products: Pricing Considerations and Approaches, Pricing Strategies.
• Distribution Channels and Logistics Management, Retailing and Wholesaling.
• Integrated Marketing Communication Strategy, Advertising, Sales Promotion and Public
Relations, Personal Selling and Sales Management, Direct and Online Marketing.
• Competitive Strategies: Building Lasting Customer Relationships.

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Text Books:

· Philp, Kotler and Gary Armstrong : Principle of Marketing, McGraw Hill, Co.
· William J. Stanton: Fundamental of Marketing, Etzel, and Walker McGraw Hill

Principles of Micro Economics

Course Code: ECO-301 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

• To educate the students in basic principles of Microeconomics
• To make students understand the working of the market economy
• To enable students understand the optimal resource allocation concepts
• To make students practice these concepts of Microeconomics in their personal and professional life

COURSE OUTLINE

• Definitions: Nature, Scope and importance (Micro Economics).

• Definitions of Economics. Concept of scarcity, choice and wealth in economics. Economic & non-
economic goods
• Consumer Behaviour: Definition, Meaning, marginal Utility, Cardinal Approach (Law of Diminishing
Marginal Utility &Equi-marginal Utility Law) and ordinal Approach (Indifference Curve Analysis).
• Concepts of Demand and Law of Demand. Changes in Demand (Shift versus movement in Demand).
Determinants of elasticity of Demand, Consumer‘s surplus, Elasticity of Demand and its measurements.
Price, Income and Cross Price Elasticity. Application / practical importance of concept of elastic for
managers.
• Concept of Supply & stock; Law of supply. Changes in Supply (shift and Movement of Supply Curve).
Producer‘s surplus. Elasticity of Supply and its measurement.
• Price and Market equilibrium. Effects of changes in market forces of demand and supply on market
equilibrium and Market price and Normal price.
• Production: Law of variable Proportions. Concept of Factor of Production, Land Labour, Capital &
Entrepreneur. Laws of Returns and their application.
• Production possibility curve, Factor Pricing: Rent, Wages, Interest and Profit.
• Costs: Costs over timeperiod Fixed, Variable, Total, Average - short run and long run Marginal.
Opportunity Costs.
• Market: Perfect and Imperfect Competition. Price and output determination, Revenue curves
and their determination under perfect and Imperfect competition. Monopoly, Monopolistic competition
Oligopoly Price Control, Price ceiling and price floor..

Recommended Books

1. 3. Hailstone J. Thomas and Mastriana V. Frank (2004) ― Basic Economics‖ 13th edition Thomson
2. 4. Petersen H. Craig, Lewis W. Cris (2003) ― Managerial Economics‖ 4th edition Pearson
3. 5. Colander C. David (2006)‖ Economics‖ 6th edition McGraw Hill Internatiional Edition.
4. 10. Journals / Periodicals:
5. 11. World Wide Web

Semester IV

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 Cost Accounting
Course Code: BBF-409 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

• To understand cost concepts, objectives, scope, cost flow and classification,
• To prepare cost of production report and cost statement under process cost accounting system and job order
costing system, respectively,
• To understand and explain material, labor, factory overhead costing and control,
• To Prepare job order cost sheet and cost of production report

COURSE OUTLINE

• Introduction, Organization and overview of the course

• cost of goods sold, cost of good manufactured
• The nature, concepts and classification of cost
• Product cost accumulation systems
• Costing and control of material
• Costing and control of labour
• Costing and control of factory over head
• Job Order costing system
• Process costing
• Joint product and by product costing
• Budgeting
• Direct and absorption costing
• Break-even analysis and cost- volume- profit analysis

Text Books:

• Hilton , Horngren: Cost accounting

• T. Lucy: Cost Accounting
• Matz and Usury: Cost Accounting

Human Resource Management

Course Code: BBF-507 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

• To recognize and appreciate importance of effective Human Resource Management for microfinance
operations
• To understand the key functions of the Human Resource Management
• To become familiar with systems and structures that support effective Human Resource Management
• To review systems and tools used in Human Resource Management

COURSE OUTLINE

Introduction to Human Resource Management

• Human Resource management - What and Why

• Model of Human Resource Management
• Management and Leadership

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 • Organization of Human Resource Management

The Personnel Function

• Terminology
• Who does personnel work?
• Staff role of the personnel department
• Personnel (Human Resource) functions

Job Design and Analysis

• Job design
• Job information and personnel management
• Analyzing jobs-obtaining job information
• Functional job analysis
• Administration of the job analysis program

Human Resource Planning

• Reasons for human resource planning

• The planning process

Recruitment and Selections/Testing and Interview

• Labor market considerations

• Recruitment and selection policy issues
• The employment process

Sources of people

• The selection process

• The selection procedure
• Testing: Interview

Recommended Books: (Latest Editions)

1. Garry Dessler, Human Resource Management

2. Dale S. Beach, Personnel The Management of people at work
3. Holdin, Human Resource Management
4. William B. Werther& Keith Davis Human Resource & Personnel, McGraw Hill.

Principles of Macro Economics

Course Code: ECO-302 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

• To educate the students in basic principles of Macroeconomics
• To make students understand the working of the policy initiatives in the market economy
• To enable students understand the aggregate concepts of national Income, Employment, Inflation, Money and
foreign Sector Issues
• To develop economic thinking among students

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COURSE OUTLINE

National Income:

• Concepts of National Income-GNP, NNP, GDP, NI, PI,

• Personal disposable income, transfer payments,
• Circular flow of national Income. Measurement of National Income: National Income at market
price, at factor Cost; Measurement of national Product in current price and in constant prices.

Trade Cycle:

• Phases, Causes & Remedies, Theory of Trade Cycles (Keynes theory)

• Employment and theories of unemployment
• Consumption, Keynesian Psychological law of Consumption, Consumption function, saving function,
investment multiplier,
• Inflationary and deflationary gaps under Keynesian theory.
• Inflation Kinds, Causes, & Remedies.

Value of Money:

• Quantity Theory of Money,

• Liquidity preference theory and Motives to save (Money demand of Keynes),
• Money Multiplier. Concepts of M1 and M2 (Money Supply)

Public Finance:

• Meaning, Difference between Private and Public Finance,

• revenue and Expenditure of Public Bodies,
• Kinds of Taxes and Cannons of Taxes fiscal policy.

Tools of Fiscal and Monitory Policy.

• Balance of Payments , Exchange rates and trade: Balance of Trade, Balance of Payments,
• Causes of Disequilibrium and Measures. Exchange rates (basic concept)
• Policy mix
• Economics in Islam: Economic role of State in Islam, Zakat and Usher

Recommended Books: (Latest Editions)

1. Parkin Michael (1997) Macro Economics 4th edition New York Addison Wesley
2. Begg David, Fischer Stanley, DornbuschRudiger (2003) Economics 7th edition The McGraw Hill
3. Nordous. D. William, Samuelson Paul. A (2005) Macro Economics 18th edition the MCGraw Hill

Financial Management
Course Code: BBF-408 Credit Hours: 3(3-0)

INDENTED LEARNING OUTCOMES

• To equip the students with the latest knowledge of finance helping them to make rational financial decisions
and thereby to maximize the wealth of the owners.
• To develop understanding of the students in making decisions relating to special situations such as merger,
acquisition etc.

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• To equip the students with latest tools and techniques in financial decision-making.

COURSE OUTLINE
• Capital Budgeting Process, An overview
• Generating Investment Project Proposals
• Estimating Project ―After Tax Incremental Operating Cash Flows‖
• Contribution to Total Firm Risk: Firm Portfolio Approach
• Managerial Options
• Working Capital Terminology, Cash Operating Cycle, Alternative Current Asset Investment
Policies,Cash Management
• Marketable Securities
• Inventory, Inventory Costs, Receivables Management
• Credit Policy
• Financing Current Assets,Alternative Current Asset Financing Policies
• Sources of Short Term Financing, Advantages and disadvantages of Short Term Financing
• Accruals
• The Target Capital Structure, Determining the Optimal Capital Structure, Capital Structure Theory,
Variations in Capital Structures
• Dividends versus Capital Gains, Dividend Policy Issues, Dividend Stability, Establishing the Dividend
Policy in Practice, Dividend Reinvestment Plans, Factors affecting Dividend Policy
• Stock Dividends & Stock Splits
• Standard Debt Provisions, Restrictive Debt Provisions,Cost of Long Term Debt
• Characteristics of Term Loan Agreements, Term Lenders
• Legal Aspects of Corporate Bonds, General Features of a Bond Issue,Bond Rating
• Basic rights of preferred stockholders, Features of preferred stock, Special types of preferred stock,
Advantages & disadvantages of preferred stock
• Basic types of leases, Leasing agreements,The lease contract (IAS17)
• Definition of Mergers, Motives for Mergers, Types of Mergers
• Leveraged Buyouts

Recommended Text:

1. Brigham F Eugene, Houston F Joel (Latest edition), Fundamentals of Financial Management, South Western
Publishers, Ohio
2. Jr Scott Martin, Petty J. William (Latest edition), Basic Financial Management, Apprentice Hall International
Inc, New Jersey.
3. Horne Van, JrWackowicz (Latest Edition), Fundamentals of Financial Management, Apprentice Hall
International Inc, New Jersey.

Money, Banking and Investment

Course Code: BBF-404 Credit Hours: 3(3-0)

INTENDED LEARNING OUTCOMES

By the end of this course it is expected that the student will be able to understand:

• the concept of the money, money demand & supply

• Monetary theories the impact of monetary variables on real variables
• The role of central bank and Instruments of monetary policy
• the concept of trade deficit, exchange rates, and the impact of capital inflows (and capital outflows)

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COURSE OUTLINE
MONEY:
• Nature
• Definition and Functions.
• Types of Money
• Evolution of Fiat Money
DEMAND FOR MONEY:
• The transactions precautionary and speculative motives.
• Factors affecting the demand for money.
SUPPLY OF MONEY: TYPES OF MONEY:
• The concept M1 to M4
• The process of money creation and sources.
MONETARY THEORIES
• The crude Quantity Theory
• Modern Quantity Theory
• Inventory Theoretic Approach
CENTRAL BANKING
• Functions of central bank
• The central reserve system
• Modern banking and creation of money.
• Control of Credit & money by the Central Bank and the instruments used for it
COMMERCIAL BANKING:
• Commercial bank and its functions
• Commercial banks and payment system
• Commercial banks and money stock
• The organizations and structure of banks
• Lending to business firms
• Policies and procedures
FOREIGN EXCHANGE AND TRADE
• Foreign exchange determination
• Theory of international trade
• Import/export and letters of credit
• Trade financing

TEXT/REFERENCE BOOKS
1. Mishkin, Frederic. S, The Economics of Money and Banking and Financial Markets, 8 th edition, Pearson
Education
2. Meenai, S. A. Money and Banking in Pakistan, Karachi, Oxford University Press.
3. Lucket, D. G., Money & Banking, McGraw Hill

Elective Courses

Consumer Banking

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 Course Code: BBF-415 Credit Hours: 3(3-0)

Learning Outcomes

A candidate who has successfully completed the subject should:

 Be conversant with the features of a range of consumer banking products, including consumer credit
products such as credit cards, home loans and personal loans, deposit products, payment systems (including cheques
and direct debits) and other electronic banking services
 Understand, and be able to apply, the laws governing consumer banking products, and some of the
consequences of breach of those laws
 Understand the regulatory framework in which consumer banking products are offered.

Course Contents

This subject is concerned with the nature of, and laws relating to, consumer (i.e. individual) banking products. The
focus of the subject will be on credit providers and other financial institutions offering these types of products. The
subject will follow a range of these types of products, from their development and marketing, through to their
formation, servicing and the “cross sell” of other similar products to consumers.

Principal topics will include:

 Licensing regimes
 Obligations both prior to and during the life of consumer banking products
 The role of regulators, including industry regulation
 The importance of disclosure in consumer banking and proposals for reform
 The role of intermediaries in distributing consumer banking products

Recommended Books

 Pond, Keith “Retail Banking”. Global Professional Publishing LTD

 Croxford Hugh “The art of better retail banking”, Jhon Whely & Sons LTD

Micro Finance
Course Code: BBF-414 Credit Hours: 3(3-0)

Course Objectives:

• To develop the understanding of students about microfinance and its impact on poor and poverty,

• To give students necessary skills to undertake Impact assessment of micro finance in poverty reduction.

Course Outline:

1-Introduction and Overview

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Why Development Finance Institution Exists? Market Failure vs Government failure, Why Credit Markets Fail the
Poor? Micro Financing.

2- Current Debates in Micro Finance

Subsisted credit provision, the move to market based solution, making use of social collateral, Savings, Can Micro
finance intervention reduce poverty? Poverty as Powerlessness; Credit for micro enterprises, Researching the
poorest, financial intervention and social change, treading carefully micro finance.

3- Micro Finance Mechanism

Design features, loan collection method and repay method. Repayment incentives. Saving arrangements interest
rates, The Value of a savings facility, Compulsory or voluntary Savings? Linking savings to credit peer selection,
peer monitoring, Dynamic incentives, Regular Repayment Schedule Collateral Substitute, Group based Lending.

4- Financial Performance and Sustainability

Introduction to Financial Performance, repayments/ recovery rate, Arrears and default, Financial Sustainability, The
pros and cons of scaling up Issues in sustainability: The experience of village banking sustainability through
extending coverage, Measuring financial sustainability, Managerial and organizational sustainability, subsidy
dependence index, role of innovative credit institution in the credit market.

5- Impact Assessment.

The objectives and difficulties of assessing, impact, Establishing loan use, Measuring change: Control and baselines,
proving causality, Innovations in impact assessment; assessing impact on social relationships, impact assessment as
a dynamic process, Validating – quantity data. Using. Quantitative data in impact assessment, Innovations in impact
assessment, participatory and learning action.

Recommended Texts:

 Finance Against Poverty (2 Volumes) by Hume, D. Routledge London (1996)

 Microfinance and Poverty Reduction by Johnson S and Roglay, B. Oxfam (UK and Ireland) (1997).

Banking & Financial Structure of Pakistan

Course Code: BBF-413 Credit Hours: 3(3-0)

Course Objective

This is primarily an introductory course, with the core objective of giving an overview of the financial system
globally and as it exists in Pakistan, explaining its function and importance, how it is regulated and its role in the
economy. This course covers the policies, laws and regulations which govern the sector as well as the role of the
regulator i.e. the State Bank of Pakistan. The course also touches upon the banking practices globally and those
specific to the Pakistan.

Course Contents

1 Overview of the Financial System

a) Financial system of Pakistan and the role of State Bank of Pakistan (traditional/non-traditional functions)
b) Components of the financial system
c) Development and growth of financial and capital markets

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d) Present scenario of the financial system
e) Regulatory authorities governing the financial and capital markets
2 Structure of the Financial System
a) Money markets
i) Introduction and overview of the international money markets
ii) Money markets
iii) Money markets in Pakistan
Structure and institutional development
Instruments
Framework
Regulatory authorities and regulations/guidelines governing money market
b) Mutual Funds
i) Definition
ii) Types of mutual funds internationally and locally
iii) Risks involved
iv) Performance evaluation of mutual funds
v) SECP regulations for mutual funds
c) Depositories
i) Role and functions of a depository
ii) Depository participants, issuers and registrars
iii) Central Depository Company of Pakistan
Central Depositories Act, 1997 (Pakistan)
Role
Functions
Stakeholders
d) Capital markets
i) Introduction and overview of the international capital markets
ii) Meaning and significance of capital market
iii) Capital markets in Pakistan
iv) Types of markets
Primary Market
1) Meaning
2) Significance and scope
3) Developments in primary market
4) Various agencies and institutions involved in primary market
5) Role of intermediaries– merchant bankers, registrars, underwriters, bankers to issue,
portfolio managers, debenture-trustees
Secondary Market
1) Meaning
2) Significance
3) Functions and scope of secondary market
4) Secondary market intermediaries – stock brokers, sub-brokers, advisors, their rules,
regulations and code of conduct framed by SECP
5) Stock exchanges
Functions and significance of stock exchanges
Regulatory framework and control
Operations of stock exchanges
Classification and listing of securities
Market makers
6) Over the counter market
v) Market players – investors and companies
vi) Securities laws/regulatory framework
e) Non Banking Financial Institutions (NBFI)
i) Type of NBFIs
ii) Growth and role in the financial sector
iii) Players in Pakistan

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 Types
Formation and regulation
Role
3 Securities and Exchange Commission of Pakistan (SECP)
a) Role
b) SECP Guidelines for Disclosure and Investor Protection
c) Corporate governance
4 Financial Instruments
a) Money Market instruments
i) Treasury Bills
ii) Certificates of Deposits
iii) Bankers’ Acceptances
iv) Eurodollars
v) Repos and Reverse Repos
vi) Call Money Market
b) Capital market instruments
Fixed income instruments
i) Bonds/Sukuk
ii) Municipal Bonds
iii) Corporate Bonds
iv) Term Finance Certificates
v) Asset Backed Securities
vi) Treasury Notes
c) Equity securities
i) Preferred stock
ii) Common stock
5 Yields
a) Importance of interest rates
b) Properties (functions/features) and pricing of financial assets
c) Level and structure of interest rates
d) Forces determining rates
e) Term structure - the yield curve and its significance
f) Spot rates and forward rates
g) Local benchmark rates, KIBOR rates, t-bills
h) International benchmark rate, LIBOR rates
6 Credit rating and risk evaluation
a) Concept, scope and significance
b) Regulatory framework
c) Credit rating agencies in Pakistan and their process
d) Rating methodologies for various instruments
e) Evaluation of risk
f) Benefit to investors
7 Financial system and policy
a) Major functions of financial policy in a developing country
b) Financial intermediation
c) Financial disintermediation
d) Shallow finance
e) Financial repression
f) Financial deepening
8 Financial sector reforms
a) Financial sector reforms - importance and scope
b) De-regulation and liberalization of financial sector
c) Globalization: integration with world financial sector
d) Privatization of banking sector
e) Strengthening of supervisory controls: SBP’s role.
9 Current Trends in the Financial industry in Pakistan

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a) Innovation challenges - branchless banking, mobile banking, risk mitigation and BASEL II, BASEL III
b) Interest-free banking – Islamic Banking
c) New areas of financing – ex. Microfinance
10 Laws relating to financial systems
a) Banking laws and regulations
i) Bank Company Ordinance 1962
ii) Negotiable Instruments Act 1881
iii) State bank of Pakistan Act 1956
iv) Foreign Exchange Manual
v) Financial Institutions Ordinance 2001
vi) Prudential Regulations

Recommended Readings

1. Pakistan, Institute of Bankers Introduction to Financial Systems and Banking Regulations 2011
2. Pakistan, Institute of Bankers Laws Relating to Financial Services
3. Dr. Asrar H. Siddiqi Practice and Law Banking in Pakistan

Management Accounting for Financial Services

Course Code: ENG-321 Credit Hours: 3(3-0)

Course Description

Financial decisions impact virtually every area of the business. The product ‘Management Accounting’ comprises
of, an in-depth coverage of two crucial areas of every business i.e., Management of Current Assets & Management
of Working Capital. It presents the principles and techniques of managing each element of current assets and their
financing. Basic theories & important formulae have also been discussed in each course. As any theory can be best
understood by its application, each course in this product exhibits step-by-step approach in solving problems by ‘do
and learn’ policy. Thus the product explores the theory with relevance to the real-world business problems through
analytical approach. These courses are intended to familiarize you with the basic concepts and to apply the same in
practice at intermediate and advanced level.

Learning Outcomes

After completing this course you will be conversant with:

 Principles & practice of managing Cash 

 Principles & practice of managing the float
 Principles & practice of managing debtors or receivables
 Evaluation of Credit Policy
 Principles & practice of managing inventory
 Determination of various levels of inventory
 Principles & practice of management of working capital
 Financing of Current Assets
 Determination of working capital requirements

Course Contents

Management of Current Assets

1. Management of Cash

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  Components of Cash Management
 Preparation of Cash Budget
 Cash Conversion Cycle
 Float Management Techniques
 Cash Management Models
 Determination of optimum cash level

2. Management of Accounts Receivables

 Basic concepts of and need for receivables management

 Aspects of receivables management policy
 Evaluation of Credit Policy
 Age Analysis of Debtors
 Concept of Factoring

3. Management of Inventory

 Basics of inventory
 Costs associated with inventories
 Determination of various levels of inventory
 Time of ordering inventory
 Quantity to be ordered
 Analysis of Discount & Quantity to be ordered

Management of Working Capital

4. Overview of Working Capital

 The concept of working capital

 Factors affecting working capital
 Characteristics of working capital of different businesses

5. Financing Working Capital-I

 Different types of unsecured sources of short-term finance

 Determination of cost of foregoing discounts
 Calculation of effective interest rates on bank loan

6. Financing Working Capital-II

 Different types of secured sources of short-term finance

 Financing of Accounts Receivables
 Factoring process
 Financing of Inventories
 Generic Financing Strategies

7. Estimation of Working Capital Requirements

 Concept of Operating Cycle

 Concept of Cash Conversion Cycle
 Impact of cycle time on working capital requirements

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  Approaches for estimation of working capital
 Methods of determining working capital

Corporate Governance
Course Code: BBF-411 Credit Hours: 3(3-0)

Course Objectives

• Apply theory to application, demonstrating an understanding of the theoretical knowledge base of

organizational behavior
• Analyze how individual and group behaviors act as building blocks to organizational behavior
• Research and analyze aspects of organizational behavior
• Analyze team behavior and its effect on productivity
• Communicate and interact with team members

COURSE OUTLINE

Section I

• The corporate Governance Problem

• Introduction
• The conflict between managers and shareholders
• Agency Theory: The implications of the conflict
• The Principal – Principal Conflict

Section 2

• The Impact of Ownership Structure

• Ownership and agency theory
• Institutional ownership
• Inside Ownership
• Family Ownership
• Pyramidal Ownership and Business Groups
• Enlarging the Stakeholder Perspective

Section 3

• Resolving the Agency Problem

• Board of directors
• Executive Compensation

Section 4

• Corporate Governance – Broader Issues

• Additional Influences on Corporate Governance
• Convergence & divergence – Issues in Corporate Governance

Recommended Text Books

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1. Corporate Governance 2nd edition, Christine A. Mallin, oxford University Press
2. Corporate Governance and Chairmanship a personal view by Adrian Cadbury by Oxford University Press

Financial Planning
Course Code: BBF-412 Credit Hours: 3(3-0)

Learning Outcomes

After completing this course you will be able to:

 Introduction to Financial Planning

 Analyzing the Resources of the Person 
 Basic Concepts in Financial Planning 
 Financial Products for Savers
 Financial Products for Investors
 The Psychographics and Life Cycle of the Investor
 Goals and Investment Objectives
 Tax Planning
 Building a Model Portfolio

Course Contents

1. Introduction to Financial Planning

 What is financial planning?

 Three steps in financial planning process

2. Analyzing the resources of the person

 Elements of the Balance Sheet

 The Income and Expense Statement
 The Budget
 Why is it important to prepare budget carefully?

3. Basic Concepts in Financial Planning

 The time value of money

 Diversification - 'spreading risk'
 Investment Timing

4. Financial Products for Savers

 Saving versus Investment

 Products options for savers
 Checking Accounts
 Savings Account
 Certificates of Deposit
 Money Market Mutual Funds
 Money Market Deposit Accounts
 U.S. Treasury Bills 

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5. Financial Products for Investors

 Products options for Investors

 Common Stock
 Bonds
 Preferred Stock
 Mutual Funds
 Real Estate
 Commodities
 Metals, Art and Collectibles

6. The Psychographics & Life Cycle of the Investor

 The Five Personalities

 Using the Five-Way Classification Model
 Risk/Return Trade-Offs for Investors
 Risk/Return Position at Various Life Cycle Stages

7.Goal Achievement, Investment Objectives & Investment Constraints

 Types of Goals
 Investment Objectives
 Liquidity: Real Needs and Perceived Needs

8. Tax Planning

 Strategies for reducing federal income tax

9. Model Portfolio

 Basics of Portfolio Management

 Building a Model Portfolio

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