P
PA (per annum)
For each year, annually. For example profit interest rates are given on per annum basis.
Packing list
This is an Item wise list of articles prepared by the exporter/ shipper which gives details about total number of package, description of goods / items, and their weight etc.
PBA (Pakistan banks association)
This is an institution which represents the Pakistan Banking Industry. Established in 1953, its main objective is to coordinate the efforts of the banking industry, and to share a common vision of progress and development with its members. Currently there are 48 members, categorized into 6 groups. Its governing body is an Executive Committee (EC) comprising of 14 members. PBA has 10 functional Sub Committees, each chaired by a member of the Executive Committee. Over the years the role of PBA has broadened considerably. It is now referred to by the State Bank of Pakistan in formulation of regulations for the banking industry.
Paid cheque
A paid cheque is that against which payment has been made by marking cancellation on the face of it by the paying bank
Paid-up capital
Money collected from share holders in exchange of the shares issued.
Paid-up policy
Insurance policy against which total premium is paid.
Paper currency
Bank notes issued by the government and accepted as medium of exchange.
Paper profit
Profit on investment /securities which is not yet realized by selling it.
Par
On face value, The purchase of shares of any business at the original price.
Parallel market
The parallel market, also known as the gray market, that develops in goods sold outside of their authorized channels of trade. The reason that the parallel market exists is price difference in parallel markets. Due to the price differential businessman purchase goods from one market to be resold in the more expensive market at a profit.
Parallel rate
This refers to unofficial rate or black market rate. Black market rats are created due to the government restrictions on free trading of foreign currencies.
Parcel
It refers to some quantity of goods wrapped or packed up in small package / bundle.
Pari passu
It refers to rights equal in all respects, at the same pace or rate, enjoying the same rights without any preference. Pari passu charge is created generally in syndicated/ consortium financing where all the participating banks have equal rights in security offered.
Partial loss
Damage less than the total loss. In insurance, it refers to damage that neither completely destroys the insured goods nor renders it useless for consumption purpose.
Partial payment
Payment amount that is less than the due amount.
Participating loan
It refers to the consortium or syndicate loan where more than one bank provide their part of loan
Particular average
Marine insurance provision under which damages or expenses shall be born by a exporter whose cargo is exposed to a danger because this is independent to the insurance cover bought for the cargo.
Particular lien
It refers to claim that requires payment of a debt only in respect to the goods or property in possession of a lien holder. For example, a mechanic has a lien on the repaired machine only up to the extent of the amount of the repair bill.
Partner
It refers to a person who joins with other individuals in a business (partnership) where profit and losses, are shared among the partners.
Partnership
It refers to a type of business http://www.businessdictionary.com/definition/organization.html in which two or more individuals pool money, skills, and other resources, and share profit and loss in accordance with terms of the partnership agreement.
Part payment
Any payment that is less than the entire due amount.
Par value
It refers to the apparent worth or the nominal value mentioned on face' or 'head' side of currency note, security certificate, share, bond, or other type of financial instrument.
Passbook
A book in ledger form in which all deposits, withdrawals, and earnings of a customer's savings account are recorded.
Passport
It is a Document issued in book form by a government to allow its citizens to travel abroad, and request other governments to facilitate their passage on a reciprocal basis.
Past due
Any note or other time instrument that has not been paid on the due date.
Pawnee
The person who accept goods as security for a loan
Pawnor
The person who pledges the goods
Pay
To honor a credit obligation
Pa as you earn (PAYE)
This is a tax payment method in which an employer is required by law to deduct income tax from an employee's taxable salary. This amount is deposited in the account of government within 14 days after collection.
Pay day
The day that an individual receives a paycheck. Paydays are typically either weekly, bi-weekly, or monthly.
Payee
The person or entity to whom a cheque, draft, or note is made payable.
Paying banker
A bank upon which a cheque is drawn and that pays a cheque or other draft
Paying-in slip
Deposits slip of the cash and other funds that a customer presents to the bank for credit to his or her account.
Payment
Discharge of obligation in the form of money
Payment due date
The date on which a loan or installment payment is due. Any payment received after this date is considered late; fees and penalties can be applied.
Payment in due course
Payment in accordance to the apparent tenor of the instrument in good faith and without negligence to the holder without knowledge or notice that his or her title to the instrument is defective.
Payment of cheque
When payment for goods or services is made by cheque, it is a conditional payment. The condition is that the cheque will be paid on presentation. There are some practical advantages in paying by cheque. If the goods are defective, the buyer can stop the payment of the cheque and then return the goods, rather than trying to argue for a refund.
Payment on account
In assets products it used for payment of previous periods liability. In liability products it if often used for payment on behalf of, for example a call deposit for earnest money is purchased by XYZ Co in favor of Pak PWD. Now call deposit will be prepared in the name of Pak PWD & on account of XYZ & co.
Pay off
The complete repayment of a loan, including principal, interest, and any other amounts due. Payoff occurs either over the full term of the loan or through prepayments.
Penalty
Punishment for a specified sum imposed for wrongdoing or not fulfilling term of the contract.
Penalty clause
This is a provision in a contract which narrates that a specified sum of money on the defaulting party will b imposed for specified defaults.
Pending action
It refers to a temporary action, before receipt of decision.
Pension
Periodical payment of retirement benefits
Pension funds
Pooled-contributions from pension plans set up by employers, or other organizations (EOBI) to provide for the employees' or members' retirement benefits.
Per-annum
Each year or annually for example locker rent is recovered on per annum basis
Per-capita
Per head or per person. It is derived by dividing national income by total population
Per-contra
In contras, effecting both side of ledger
Perpetual
Continuing or any thing which have no expiry date.
Personal
Any thing belonging to an individual
Personal account
Ledger accounts that record transactions with individuals as debtors or creditors.
Personal guarantee
It is an agreement that make one liable for his/her own or a third party's debts or obligations. A personal guarantee signifies that the lender can file claim against guarantor’s assets, http://www.businessdictionary.com/definition/asset.html in case of the borrower default
Personal identification number(PIN)
This refers to Code used by an individual for getting access to his/her bank account at an ATM
Personal liability
Liability of an individual which is to be satisfied out of his or her assets
Personal loan
Consumer loan is granted for meeting personal requirement such as, purchase of air conditioner, computer, refrigerator, etc. or for meeting expenses related to education vacation etc. and not for business or commercial use. Repayment is generally through fixed amount installments over a fixed term.
Personal property
It refers to properties whose ownership belongs to the individual.
Personal representative
It refers to an individual authorized to act on behalf of another such as an agent, advocate proxy etc
Personal security
This is an alternative term of personal guarantee used in case of third party advance.
Personnel management
It refers to the administrative discipline of hiring and developing employees so that they become more valuable to the organization. It includes, conducting job analyses, planning personnel needs, and recruitment, selecting the right people for the job, orienting and training, determining and managing wages and salaries, providing benefits and incentives, appraising performance, communicating with all employees at all levels.
Petition
A formal written application to a court of law for recovery of dues or want of justice.
Petrodollar
It refers to the earnings of the petroleum exporting countries in addition to their spending deposited in the Western banks.
Petty cash
Money set a side for meeting very small amount of expenditure
Piecemeal
In peaces or parts
PITI
It refers to the principal, interest, taxes, and insurance—used when describing the charges on a mortgage loan.
P & L
Abbreviation of Profit & loss account
Plaint
A statement of grievance made to a court for the purpose of asking redress.
Plaintiff
A person who files suit in the count
Plastic money
It is the generic term for all types of bank cards, credit cards, debit cards, smart cards, etc.
Pledge
Goods delivered as security for the payment of a liability. Goods are released against payment, and subject to forfeiture on failure to repay the liability.
Point of Sale (POS)
Super markets, stores or other retail outlet where an item is sold
Policy
A definite course of action adopted for accomplishment of job, standard operating procedure.
Politically expose persons ( PEP)
This is a term that describes a person who is or has held a position in the recent past. Such an individual must be tracked by banks and financial institutions as they pose potential reputational risk to regulated entities.
Portfolio
The total securities, of a financial institution or private investor held as security, the sum total of investments held by a private individual or an entity.
Portfolio management service
This is a service provided by the banks and financial institutions to the companies’ deals in securities. This includes safe keeping, collection of dividend, allocation of funds etc.
Postal order
This is a method of sending money by mail issued by one post office for payment at an other.
Postdate
Writing of a date latter than today’s date.
Pond sterling
This is the name of the UK currency £ as unique from other currencies named 'pound.
Power of attorney
This is a written legal authority given by one party to another to act on the principal's behalf. In banks power of attorney is allotted to experienced bank officers. Decisions made and actions taken by an attorney older is legally binding on the principal
Preauthorized Electronic Funds Transfer
An electronic funds transfer, authorized in advance to recur at substantially regular intervals.
Preference share
This is a class of shares who are paid a fixed and regular interest income, instead of a dividend.
Preferential creditors
When a person or company has been declared bankrupt, in that case preferred creditors, are paid in full, such as employees and the other creditors share the proceeds of remaining assets.
Preliminary expenses
The expenses incurred in the formation of a company, before the company can open its doors for business.
Premium
Amount charged or paid in excess of face value or over apparent worth.
Prerogative
Special powers, privileges, and rights available to the holder of an office, or enjoyed by a person due to the age, relationship, sex.
Prepayment
The payment of a debt before it becomes due.
Prepayment clause
A clause in a mortgage allowing the mortgagor to pay off part or all of the unpaid debt before it becomes due.
Prepayment penalty
A penalty imposed on a borrower for repaying the loan before its due date
Presenting bank
Bank that presents a financial instrument cheque, draft, letter of credit, etc to the advising or paying bank to seek a payment.
Present value
Current value of stock, security etc.
Pre shipment credit
Financing made available before goods are shipped usually against a confirmed order or letter of credit to help an exporter fulfill an export order. This facility can be availed for the specific purpose such as procuring raw materials, purchasing, and manufacturing, processing, transporting, warehousing, packing and shipping the goods meant for export.
Price
The exchange value, that is paid to purchase a definite quantity, weight, or other measure of a good or service.
Prima facie
It refers to some thing as it appears and is accepted as a fact, until a proof to the contrary is submitted.
Prime rate
The rate of interest at which banks provide credit to priority customers, such as multinational companies large corporations and those companies who have high credibility.
Principal
The actual sum borrowed or par value of a debt.
Principal balance
The outstanding balance on a loan, excluding interest and fees.
Private company
Business firm in the private sector controlled and operated by private individuals.
Privatization
This refers to the sale or return of publicly owned enterprises to private ownership and control. This is just reverse of nationalization,
Probate
This refers to the legal process by which the assets of a deceased are distributed to the heirs through an executor named in the will, or according to the local law by a court appointed administrator.
Probation
This refers to the testing or unconfirmed period of a candidate before admission as full/ confirmed employee of a company.
Proceeds
It refers to the money received through a sale or by acquiring a loan. It also refers to the funds received on realization of cheques / instruments
Profit
Profit is the difference between the income of the business and all its costs/expenses. It is normally measured over a period of time. There are four types of profits, gross profit, net profit, profit after taxation and retained profit.
Profit and loss account
It is an account which shows the inflow of money from sale of goods or services and the costs and expenses incurred against it, over an accounting period.
Profit and loss appropriation account
This is an account which explains how a company's profit has been used to pay dividends, and to increase different reserves. It explains that what happens to the profit, instead of how it was earned.
Pro forma invoice
This is an estimated invoice (quotation) sent by a seller to a buyer in advance of a sale / shipment or delivery of goods. It contain the kind and quantity of goods, their value, and other important information such as weight and transportation charges.
Project financing
This refers to the loan arrangement in which the repayment is derived from the project's cash flow on completion, and where the project's assets, rights, and interests are held as collateral.
Projected rate of Profit
Affairs of Islamic banking are carried out on Profit & loss (P&L) sharing basis. As such definite profit rate can not be given in advance. As such keeping in view previous history, market trends & T. bills profit rates approximate profit rates are given by Banks & DFIs.
Promissory note
This is a negotiable instrument, and in the form of an unconditional order signed, by one party the maker or promisor to another the payee or promisee that maker will pay a specified sum on demand, or on a fixed or a determinable future date. The legal definition of promissory note is given under section 4 of negotiable instrument Act 1881
Promotion
Lodgment of a product, idea, or point of view through publicity and/or advertising such as demonstrations, discounts, exhibitions or trade shows, giveaways, point-of-sale displays and special offers, etc..
Proof
This refers to evidence that establishes existence or truth of a fact to the satisfaction of an authority such as a court or according to the accepted standards.
Property
Any item, or thing owned with the rights of possession, use, and enjoyment, and which the owner can give as collateral/security, sell, or transfer.
Property tax
This is a tax levied on real or personal property.
Proportion
A projected relationship with, other parts or shares of a whole divided according to a formula.
Proposal
It refers to the submission of an idea by one party to another. It is different from an offer in the sense that, a proposal is not a promise, if accepted by the other party; the proposer can negotiate terms for the creation of a binding contract.
Proprietor
Single or sole owner of a company.
Prorate
Allocation according to the rate.
Prospectus
This is a mandatory document published by every company offering its shares/securities to public for purchase. It must comply with strict legal requirements and is filed for approval with the country's securities inspectorate such as the Securities & Exchange Commission (SECP) of Pakistan, or Registrar of the company. A prospectus must disclose essential information such as company’s objectives, business, current financial position, offering price on the shares etc
Protest
Formal complaint by a party in a contract.
Provision
A sum of money set a side to meet current / future expenses such as provision for bed debts, provision for depreciation, provision for pension funds.
Provisional certificate
Temporary or tentative certificate used until the, definitive, or permanent certificate is issued by the competent authority.
Proxy
A document authorizing by one person to act or vote for the other
Prudential regulations
Regulation means authoritative direction and prudential means marked with prudence. As such prudential regulations stand for authoritative directions marked with prudence. Rules and regulations are essential for the running of any system which may be social, or economical / commercial in nature. State bank of Pakistan being regulator of banking industry, have issued prudential regulations, separately for agriculture financing, Corporate & commercial Banking, SME financing, consumer financing and Micro finance banks.
Public
Any thing pertaining to the people as a whole.
Public limited company
It refers to a, limited liability company, whose shares are traded on stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their financial position .
Public relations
It refers to the effort to maintain goodwill and good relations of an entity through making excellent liaison with the Customers and prospective customers by publicity and other forms of communication. These may include support of charitable causes, education, sporting events, etc.
Public sector
It refers to that part of the economy which provides basic goods or services that are not provided by the private sector in full. It comprises of national and local governments, public corporations, Public sector is one of the largest sectors of any country.
Public utilities
Corporations or companies providing basic services such as electricity, water, gas, telephone and stock exchange who serves the peoples at large.
Purchase
To buy goods or services against money consideration.
Purchaser
It refers to the Person or entity that is a recipient of a good or service provided by a seller under a purchase order or contract of sale
Purchasing power parity
It refers to the economics concept that exchange rates fluctuation effects positive or negative on the purchasing power of the public in domestic markets for some of the goods and services. But, now a day’s interest rates and oil trade position have more effect than the purchasing power of the currencies.
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