Pakistan is a reform story like India’s ─ only better: economist

Discussion in 'Pakistan' started by Zarvan, Aug 2, 2015.

  1. Zarvan

    Zarvan Regular Member

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    The construction sector grew at 11.3 per cent through FY14-15, nearly double the 5.7pc target, according to State Bank of Pakistan data. ─ AFP/File

    Construction and infrastructural development have been cited as the primary drivers behind Pakistan’s emergence as a frontier market by a Bloomberg report.

    The construction sector grew at 11.3 per cent through FY14-15, nearly double the 5.7pc target, according to State Bank of Pakistan data.

    London-based chief economist at Renaissance Capital Ltd Charlie Robertson said of Pakistan: “It is the best, undiscovered investment opportunity in emerging or frontier markets,” adding, “What’s changed is the delivery of reforms ─ privatisation, an improved fiscal picture and good relations with the IMF.”

    Nawaz’s government has boosted infrastructure expenditure by 27pc to Rs1.5 trillion for fiscal year 2015-2016 (FY15-16), as interest rates are the lowest they have been in 42 years and the economy is expanding at its quickest since 2008.

    Pakistan is a reform story like neighbouring India’s, but only better, said Renaissance’s Robertson.

    Read more: Ishaq Dar eyes 7pc growth by tenure end

    Cement producers DG Khan Cement Co. and Cherat Cement Co. have announced plans to expand, while steelmakers Amreli Steels Ltd. and Mughal Iron and Steel Industries Ltd. are raising equity capital.

    Bloomberg data shows the cement industry has rallied 57pc over the FY14-15 ─ nearly thrice the benchmark target ─ with Maple Leaf surging 161pc, Fauji Cement jumping 81pc, and DG Khan making gains of 62pc.

    Read more: Builders want steps to make cement cheaper

    Chief Executive Officer UBL Fund Managers Ltd. Mir Muhammad Ali said, "The construction industry is seeing a boom, and there is still juice left in the cement rally ... Overall economic improvement has also helped.”

    Pakistan's $46 billion deal with China for the China-Pakistan Economic Corridor includes $28bn in investments which are expected to have a trickle-down effect.

    Read more: $28bn accords for fast-track projects

    A builder in Karachi Hassan Baskhi says, “Business has been very good, and there’s no doubt my work has tripled in five years ... There’s huge demand from the middle class for affordable housing.”

    The economy has shown resilience to environmental instability. The KSE Index ─ among the world's top 10 performers ─ has grown 16pc over FY14-15, despite sectarian violence, bomb attacks, targeted killings and kidnappings.

    Read more: Stocks greet new fiscal year with 445-point rally

    Inflation has shown a downward trend over the past twelve months, with the annual inflation for the just-concluded fiscal year resting at 4.53pc.

    Read more: Inflation halves to 4.53pc in FY15

    Earlier this year, the International Monetary Fund said Pakistan had been making significant progress on targets in the $6.6bn loan programme. The IMF predicted growth of 4.5pc this year following a 4.1pc growth rate last year.

    Read more: IMF predicts stronger growth in 2015

    Moody's Investors Services, as well as Standard and Poor's (S&P) upgraded Pakistan's credit rating. S&P attributed the improvement to diversification in income generation, the government's efforts towards fiscal consolidation, improvement in external financing conditions and performance, and stronger capital inflows and remittances.

    http://www.dawn.com/news/1191880
     
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  3. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    Pakistan do have potential for reforms and growth, But India has started its reforms much earlier than Pakistan and the India's stats are much bigger than Pakistan.
     
  4. ezsasa

    ezsasa Senior Member Senior Member

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    Until the 90's Pakistan was a advanced economy compared to india, but they lost their way after that.

    On the bright side for Pakistan, they need fewer billions compared to india to get back on track.
     
  5. Sylex21

    Sylex21 Regular Member

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    congratz to Pakistanis on economic improvement.
     
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  6. sob

    sob Moderator Moderator

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    What do you mean by this post.

    Post something useful and constructive. Not every thread has to be a dick measuring contest.

    We do not need trolls to derail every thread that is opened.
     
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  7. sob

    sob Moderator Moderator

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    Buddy let us keep out the comparison stuff.

    It is a good idea to have knowledge about our neighbours. Let us not give an option to others to derail the thread.
     
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  8. mahesh

    mahesh Regular Member

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    yes you are right, they need fewer billions to come back on track of development compare to India, but the think is, the fewer billions invested will yield only fewer money, compare to huge month invested in India and India compared with china.

    i wonder if China is willing to help pakistan to build its self-reliance or will china wishes pakistan to be the same beggar state, so that it can control for long time.
     
  9. The enlightened

    The enlightened Regular Member

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    Alright. Alright. Let me delete my post.
    Which I cannot do. So please do the honours.
     
  10. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    Congratulations ................ !!!!!!!!!!!!!!!!!
     
  11. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    The thread is about comparison between India and Pakistan mate !
     
  12. ezsasa

    ezsasa Senior Member Senior Member

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    Frankly I am more inclined towards the idea that Pakistan becomes a self-reliant economy. India-Pakistan is currently in a stalemate. Once bakistan becomes truly self reliant it will lead to two outcomes, either they see the value in peace with its neighbours or they become confident enough to wage a full fledged war with us. First opinion is explanatory, but a full fledged war gives us an opportunity to bust the myth about Baki military prowess. It is time their current young generation get to learn some hard truths.
     
  13. hit&run

    hit&run Elite Member Elite Member

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    We had the same thread couple of weeks back.

    OP's POV on this article will help us know what author is implying here.
     
  14. Brood Father

    Brood Father Regular Member

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    Congrats ...its a good move , but it should benifit everyone , not just politicians and businessman and I believe (correct me if i am wrong) Pakistani politician are equally corrupt when compared to Indian counter parts
     
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  15. sob

    sob Moderator Moderator

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    I stand corrected, did not read the Title of the thread correctly.
     
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  16. sorcerer

    sorcerer Senior Member Senior Member

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    Seems like Pakistan is bend on keeping the Navas Govt alive after all. So no Coups in the near future..:shock:
     
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  17. anupamsurey

    anupamsurey Regular Member

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    I can easily compare one of our developed states to Pakistan...and i will find the stats of Indian state fare far better than Pakistan.
    do you get my point....comparison should be based on topics where two entities are equal (population, or industries, like that.) otherwise you have to formulate a way to bring some methodology to proportionate these entities. this is the reason for smaller countries to fare better than much bigger countries, otherwise these smaller countries don't stand a chance of comparison on sheer numbers.
     
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  18. Neo

    Neo Senior Member Senior Member

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    Please elaborate how fewer billions will result in lesser yield. Pakistan is considerably smaller than India in size and population. Even a fewer billions if used wisely will result in better HDI and growth.

    I believe that the initial $45 billion that China is willing to invest in Pakistan will put us back on track. Security has already improved and we're going to see much improvement in years to come.
     
  19. anupamsurey

    anupamsurey Regular Member

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    and it can also be a propaganda to show that the current govt in pakistan is the best in its history, the numbers can be manipulated, this is the best thing they can learn from their brothers across the himalayas.
     
  20. mahesh

    mahesh Regular Member

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    How many few billions came into pakistan, in pakistan's begging history. why couldn't it revive itself.
    counting mainly on Geopolitical advantages shows the ability of pakistan, and counting of mainly Geopolitical stakes is vulnerable, it can be taken out.
    Given the disputed region of POK in which pak and china engaged will put the corridor itself in jeopardy.
    Chinese method of investment it takes back more out of what it invests.
     
  21. Neo

    Neo Senior Member Senior Member

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    Foreign aid received by Pakistan in 2014:
    $3.507.500.000

    Foreign aid received by India in 2014:
    $3.228.200.000

    Source: wiki

    Super duper rising and shining India is getting almost same amount in foreign aid. So think twice before you point fingers at others or stop begging.
     

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