1/ 🧵 Quality of Non-executive directors (NEDs) for listed & public interest companies.

It's not uncommon, even in developed economies, to appoint friends & associates on the boards - by majority shareholders as well as management.
This is an undeniable basic human trait
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https://twitter.com/sulemaniya_/status/1712855127642583261

2/
Real challenge is the quality of people you appoint because good quality boards are critical for the long-term success of the company.

Even for simple hiring, I always advise my clients to stringently follow the principle embedded in the following quote:

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1/ Story of 🇵🇰 bank's stellar performance. 🧵
Bank's are making exceptional profits, thanks to genius IMF advice enforced by independent SBP wrt monetary policy to control inflation. With policy rate at 22%, banks are mainly engaged in risk-free lending to GoP at 23%, are
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2/ earning highest spread in the world of 10 to 12%. Effectively, entire domestic savings of the country (deposits) are insufficient to finance the Govt's unproductive expenditure & its fiscal deficit, and significant portion of this lending is still financed by SBP routed

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1/ 🧵 Current Account turned surplus of $255 miln in May23 vs deficit of $ 1.5 biln in May 22.

In 11 months of current fiscal year, current account deficit reduced to $2.94 biln vs $ 15.16 biln deficit in the corresponding period.

Let us dive in to see its implications

⬇️ 2/ While one can see justification of curbing imports through harsh measures under unusual circumstances, thre is no justification for ceaseless expansion of govts wth unproductive expenditure putting huge burden on economy thus reducing our exports despite huge devaluation

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1/ Opportunities in Crises

Almost entire manufacturing sector is shrinking. This indicates -ve GDP growth for full year, although govt may announce slightly +ve growth in Economic Survey based on 9 months data.

A major reason for this is steep

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dawn.com/news/1753507/b… 2/ steep reduction in imports, given severe forex shortages, 🇵🇰 likely to remain in this state - inability to import & rupee remaining under pressure for foreseeable future. Given this condition, there is huge opportunity for both localisation (substitute imports) and

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1/ Conditions in Pakistan continue to worsen - over 40% inflation, contracting economy, no dollars to import essential commodities, no progress on revival of IMF program & looming risk of sovereign default - no respite for common man. Concomitantly, there is
⬇️ 2/ extreme politcal polarisation bet @ImranKhanPTI /@PTIofficial, the most popular leader & party & all other parties that constitute federal govt duly supported by the military.

Further compounding the situation is a divided Supreme Court and

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Key Questions on AlQadir trust case

1. As this matter is under public scrutiny & investigation, why full facts & rationale of the agreement, as presented to cabinet, who proposed the summary, what was cabinet decision, not being made public?
2. Was this matter actually

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https://twitter.com/Wabbasi007/status/1657411779864010752

2/ deliberated in the cabinet through a summary, as required under the Rule of Business or only a sealed envelope presented & cabinet approval got without disclosing all facts & rationale?
3. Apparently, govt is alleging that cabinet approved the sealed envelope without
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1/ Why is Pakistan's Parliamentary system not working? 🧵

Ineffective parliamentary system is one of the most serious problems facing the country is hindering its progress.

The route cause of this issue lies in the composition of parliament & provincial assemblies

👇 2/ As most members are either "electables" who rely on local influence and patronage networks or "party loyalists" who prioritize their political party interest over their constituents / public interest

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What are key benefits of Good corporate governance?

1) Improved accountability and transparency: Good governance helps to ensure that companies are accountable to their stakeholders and operate with transparency, reducing the risk of fraud or unethical practices.

👇 2.
2) Enhanced performance and reputation: Companies with strong governance structures tend to perform better financially and have a better reputation, which can attract more customers, investors, and employees.

3) Increased investor confidence: By providing assurance that
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A great passage from Henry Kissinger's recent book on "Leadership" of Lee Kuan Yew, the founder & architect of modern Singapore, which reflects on Lee's thoughts.

How a leader created & envisioned Singapore to be 'a country of the future, not of the past.' 🧵

👇 2.

"Lee meant his legacy to inspire, rather than inhibit, progress. That is why he requested that his home on Oxley Road be demolished after his death to avoid its becoming a memorial shrine.

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Until yesterday, everyone expected IMF as a done deal, as govt had accepted all conditions relating additional taxes, curtailing subsidy & energy circular debt. But scepticism has grown due to ambiguity re contents of MEFP (not made public) coupled with evasive communication

👇 2. Seems major question marks over Pakistan's ability to bridge the funding gap of $ 8 to 10 biln through friendly countries.

This is likely to be one of the most critical prior actions.

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Interesting 13 paradoxes of life by @david_perell

1. The Paradox of Reading: The books you read will profoundly change you even though you’ll forget the vast majority of what you read.

👇
perell.com/note/the-parad… 2. The Paradox of Writing: Great writing looks effortless. But because the ideas are so clear, casual readers don’t appreciate how much time it took to refine them.

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Clear example of collapse of country's banking, regulatory, investigative & legal systems. Not just default, but massive frauds perpetrated by sponsors/ mgment: banks, regulators, investigators remain silent spectators. Why? 1/6
profit.pakistantoday.com.pk/2022/12/12/has… via @Profitpk 2. Nearly 60 bln unsecured loans provided by banking sector to #Hascol based on hype created by mgmnt, fraudulent fin reporting. Is there any assessment why & how banks provided such large loans without proper understanding & due diligence of the compny & its business? 2/6

4) progress considerably slowed, as Mr. Naqvi, otherwise highly competent & eminent professional, was unwell-for same reason, he resigned last yr May. For 6 months thre was no Chairman of the board. With appointment of curnt chairman, there hv been meetings, but wth limited n/4 5) to deal wth urgent issues, not full agenda. I understand Chairman also concerned on state of SECP. Threfore, consider PB’s oversight function, owing to very few meetings/interactions fr last 2 yrs hv been inadequate, poses serious risk due to condition described below n/5

Comments on current disastrous situation in Sindh caused by devastating rains & complete collapse of administrative machinery:

No doubt quantum of rains in Sindh- Karachi to Kashmore- this yr are unprecendented 🧵 1/n

https://twitter.com/Asad_Ashah/status/1561048990753357825

2) Administration- starting wth Prov Govt- public health & local govt, Provnl Disaster Mgment Authority (PDMA), divisional & district admins wre ill prepared for such disaster- so no surprise they hv done very little to alleviate damage & suffering caused to affected people. n/2

1) Finally, seems IMF progm being shortly revived, wth more taxes.
GDP growth to slow down-may be 3%- more increase in petrol prices & utilities- significantly higher inflation may be 15%. In this 🧵 I cover 2 strategic options country has to choose n/1
dawn.com/news/1696100/l… 2) With #IMF revival, default averted in near term, but economy to remain in #ICU . How will the govt address fiscal & currnt acnt deficits, ensure servicing of huge stock of external debt, improve forex reserves, enhance exports & restore investor confidence? n/2

1) Massive criticism & heartburn over performance evaluation of Ministers introduced by @ImranKhanPTI - reflects following realities a) Despite serious limitations & weaknesses- it is an excellent 1st step to improve performance & service delivery; 1/4
gulfnews.com/world/asia/pak… 2) b) politically, was highly counterproductive for a coalition govt wth small majority- already facing risk of impending no confidence; c) no brainer- when you reward 10 out of 55, remaining 45 will deeply resent & fight back; 2/5

1) Pak Steel became profitable frm 2002/3 to 2007/8, not because of any special mgt skills, but because steel prices continously went up in that period, & everone in steel, from Tatas to Mitals made huge profits.

https://twitter.com/SaleemFarrukh/status/1269186918845231104

2) Global financial crisis caused the steel prices to crash in 2008/09 which mgt and board cud not understand. They kept importing pig iron, as they were used to increase in prices, with result, they incurred loss of 28 biln, wiping out all profits made in previous 5 yrs.