Friday, September 29, 2017

Pakistan Among Fastest Growing LNG Markets in the World

Pakistan joined the list of LNG importers last year and promptly became one of the world's fastest growing LNG markets, according to Shell 2017 LNG report.  The South Asian nation has suffered a crippling energy shortage as demand has risen sharply to over 6 billion cubic feet per day,  far outstripping the domestic production of about 4 billion cubic feet per day. Recent LNG imports are beginning to make a dent in Pakistan's ongoing energy crisis and helping to boost economic growth. Current global oversupply and low LNG prices are helping customers get better terms on contracts.

Pakistan Gas Market Forecast. Source: Platts

Global LNG Market:

Pakistan, Egypt and Jordan together imported 13.9 million tons of LNG, more than the combined increase of 11.9 million tons by the most populous nations of China and India.

The biggest increase in LNG exports in 2016 came from Australia, where exports increased by 15 MT to a total of 44.3 MT. It was also a significant year for the USA, after 2.9 MT of LNG was delivered from the Sabine Pass terminal in Louisiana. Qatar remained the world’s largest LNG exporting country, accounting for around 30% of global trade of 258 MT by exporting 77.2 MT, according to International Gas Union report 2017.

LNG Demand in Pakistan:

Pakistan has been a big consumer of natural gas since the discovery of Sui gas fields in Balochistan in 1952. Sui now accounts for just 6% of natural gas domestically produced in Pakistan. The rest of the 94% comes from gas fields in other parts of Pakistan. Among the various provinces, Sindh is now the biggest producer of natural gas. Demand has risen sharply to over 6 billion cubic feet per day,  far outstripping the domestic production of about 4 billion cubic feet per day.

Pakistan is currently importing 2 million MT (96 billion cubic feet) of LNG and negotiating to secure an additional 3 million MT in long-term contracts by the end of 2017 to supply its new LNG floating terminal due to arrive by December, according to M. Adnan Gilani, chief operating officer with Pakistan LNG Ltd, as reported by Platts.

New supply agreements will increase Pakistan's total LNG contracts total to more than 11 million MT per year, as the country aims to resolve a decade-long energy crisis, driven by growing gas consumption and falling domestic production.

In addition to government-to-government contracts, there are also private and public companies negotiating deals to import LNG. For example, Karachi-based power generator K-Electric is seeking supply for its 900-megawatt, $1-billion Port Qasim Power Station which will start-up in two phases, in mid-2018 and the end of 2019, according to Reuters news agency.

In the longer term, Pakistan aims to allocate a quarter of its LNG purchases to the spot and short-term markets, Pakistan LNG Ltd's Adnan Gilani told Platts. "Initially, our goal is to solve our energy crisis. We have long-term downstream commitments, so we do not mind going to mid-to-long term initially," he said. "Over the course of time, we will be able to cater to our variable non-cyclical demand... and allocate about a quarter of our portfolio to spot and short term. PLL is currently purchasing four cargoes per month on a short-term basis as it awaits the start of new term volumes.

By 2022, Pakistan expects to import 30 million MT (1,440 billion cubic feet) of LNG, according to Adnan Gilani of PLL.

LNG Infrastructure:

There is one LNG terminal currently operational at Port Qasim and 5 more are planned in Pakistan over the next two years to deal with rising volume of LNG imports. New pipelines are planned by South Sui Gas and Northern Sui Gas companies to transmit regasified LNG to various parts of the country to meet demand.

Summary:

Pakistan is among the fastest growing LNG markets, according to Shell 2017 LNG report.  The country has suffered a crippling energy shortage in recent years as demand has risen sharply to over 6 billion cubic feet per day,  far outstripping the domestic production of about 4 billion cubic feet per day. Recent LNG imports are beginning to make a dent in Pakistan's ongoing energy crisis and helping to boost economic growth. Current global oversupply and low LNG prices are helping customers get better terms on contracts.

Related Links:






Wednesday, September 27, 2017

Kautilya's Doctrine Dominates India's Pakistan Policy

“Every neighboring state is an enemy and the neighboring state's neighbor is a friend.”
 ― Kautilya, The Arthashastra

The name of Kautilya, meaning crooked, is invoked by former Indian foreign secretary Shyam Saran's book “How India Sees the World: Kautilya to the 21st Century”.   This invocation of Kautilya in the title of the book makes the above quote about "neighboring state is an enemy" particularly relevant to how Indian policymakers like Shyam Saran see Pakistan and Afghanistan.

Who was Kautilya?

Kautilya (“crooked”) is believed to be the pen name of the ancient Indian minister Chanakya who served Chandragupta Maurya, the founder of the Mauryan Empire (322 BC-185 BC). German sociologist Max Weber once called Kautilya's Arthashastra “truly radical ‘Machiavellianism’ . . . compared to it, Machiavelli’s The Prince is harmless.”

Arthashastra on Foreign Policy:

Some of Kautilya's Arthashastra’s "wisdom" deals with international relations and foreign policy which is laid out mainly in books 7, 11, and 12.

Kautilya presents a theory of international relations called the “circle of states,” or Rajamandala. It says hostile states are those that border the ruler’s state, forming a circle around it.  In turn, states that surround this set of hostile states form another circle around the circle of hostile states. This second circle of states can be considered the natural allies of the ruler’s state against the hostile states that lie between them. Put more succinctly, “the enemy of my enemy is my friend.”

Kautilya-Loving Modi With Pakistan's Neighbors: Iran's Ruhani & Afghanistan's Ghani


Influence on India's Pakistan Policy:

Kautilya's Rajamdala (Circle of States) can be seen in action today in India’s foreign policy. It sees Afghanistan as a natural ally against Pakistan. Similarly, it sees Japan as a natural ally against China.

To understand how India uses Afghanistan against Pakistan, let's examine what former US Defense Secretary Chuck Hagel says: "India has always used Afghanistan as a second front against Pakistan. India has over the years been financing problems in Pakistan".

Bharat Karnad, a professor of national security studies at the Centre for Policy Research in New Delhi, recently acknowledged India's use of Tehreek-e-Taliban Pakistan (TTP) terrorist group against Pakistan in an Op Ed he wrote for Hindustan Times. Karnad believes US Defense Secretary Jim Mattis is trying to get Pakistan's cooperation in Afghanistan by asking India to cut its support of  the TTP. Then he added that "Severing relations with TTP will mean India surrendering an active card in Pakistan and a role in Afghanistan as TTP additionally provides access to certain Afghan Taliban factions".

Summary:

The foreign policy doctrine enunciated by Kautilya, the ancient Indian Machiavelli, continues to guide India's foreign policy vis-a-vis its neighbors, particularly Pakistan. Kautilya's Rajamdala (Circle of States) theory can be seen in action today in India's use of Afghanistan against Pakistan. Unfortunately, the Pakistan phobia in India is so deeply ingrained that the Indian policy vis-a-vis Pakistan is not likely to change in the foreseeable future.

Viewpoint From Overseas host Misbah Azam discusses this subject with Ali H. Cemendtaur and Riaz Haq (www.riazhaq.com)

https://youtu.be/nzNstymhlnM




Related Links:

Haq's Musings

Why is India Sponsoring Terrorism in Pakistan?

Ex-Indian Spy Documents RAW's Successes in Pakistan

Has Modi Stepped Up India's Cover War Against Pakistan?

Ex RAW Chief AS Dulat Blames Advani For Agra Summit Failure

Pakistan ISI: Afghanistan's Bogeyman

India-Pakistan Cricket Diplomacy

Counter-insurgencyOperation ZarbeAzb

India's Abiding Hostility Toward Pakistan 

India's Israel Envy: Will Modi Attack Pakistan?

India's Pakistan Phobia

Monday, September 25, 2017

How Has Bangladesh Left Pakistan Behind in Per Capita Income?

A headline in the Economist magazine's recent issue screams: "Bangladesh's GDP per person is now higher than Pakistan's". Let's examine this development to understand its causes.

Per Capita GDP:

The Economist article explains its headline as follows: "Last month revealed a remarkable turnaround. Bangladesh’s GDP per person is now higher than Pakistan’s. Converted into dollars at market exchange rates, it was $1,538 in the past fiscal year (which ended on June 30th). Pakistan’s was about $1,470....Strange as it may sound, Bangladesh jumped ahead because of an advance in Pakistan. On August 25th Pakistan released the results of its census, updating earlier population estimates. They showed that the country has 207.8m people, more than 9m more than previously thought. It may now have the fifth biggest population in the world, surpassing Brazil’s. But the new count also lopped 4-5% off Pakistan’s GDP per person, the arithmetic consequence of revealing so many more people."

Savings Rate in Pakistan Source: State Bank of Pakistan

Pakistan Growth By Decades. Source: National Trade and Transport Facility

Economic Growth Trends:

One can quibble with the Economist on details of its report but the fact remains that Bangladesh's economy has been growing significantly faster than Pakistan's for about a decade. To understand why, it's important to look into savings and investments, population growth trends and security situation in the two countries. Let's examine each in a little more detail.

Investment as Percentage of GDP Source: State Bank of Pakistan

Savings and Investment:


There's a strong relationship between investment levels and gross domestic product. The more a country saves and invests, the higher its economic growth.  A State Bank of Pakistan report explains it as below:

"National savings (in Pakistan) as percent of GDP were around 10 percent during 1960s, which increased to above 15percent in 2000s, but declined afterward. Pakistan’s saving rate also compares unfavorably with that in neighboring countries: last five years average saving rate in India was 31.9 percent, Bangladesh 29.7 percent, and Sri Lanka 24.5 percent..... Similarly, domestic savings (measured as national savings less net factor income from abroad) also declined from about 15 percent of GDP in 2000s, to less than 9 percent in recent years. Domestic savings are imperative for sustainable growth, because inflow of income from abroad (remittances and other factor income) is uncertain due to cyclical movements in world economies, exchange rates, and external shocks".

Net Foreign Direct Investment Source: State Bank of Pakistan

Population Trends:

The total fertility rate (TFR) in Bangladesh has declined faster in Bangladesh than in Pakistan in the last few decades. Currently, Bangladesh is at 2.17 children per woman while Pakistan is at 2.62 children per woman.

As a result of reduced birth rates and more female labor participation rates, a larger percentage of Bangladeshi population is in the work force than Pakistan's. There are now more wage earners and fewer dependents in each Bangladeshi household. This demographic trend has helped boost Bangladesh's per capita income faster than Pakistan's. 

Rising working age population and growing workforce participation of both men and women in Pakistan will significantly boost domestic savings and investment. Increased foreign direct investment such as Chinese investment in China-Pakistan Economic Corridor over the next several decades will help fill the gap between the national savings rate and investments required to reach 7% annual GDP growth to create over 2 million jobs a year.

Security Issues:

Pakistan has paid a heavy price for its proximity to and involvement in "war on terror" in Afghanistan. It has cost Pakistan dearly in terms of loss of thousands of precious lives and lower investments due to investors' security concerns. Recent operations by Pakistan Army have helped turn the tide against terrorists, bringing more hope and greater confidence in Pakistan's future. Rising FDI in CPEC-related projects in the last couple of years are an indication of this confidence.

Future:

Pakistan is now experiencing the demographic dividend that Bangladesh has seen in the last few decades in terms of more of its population earning and fewer dependents. Pakistan's labor force is growing at 3.6% a year, much faster than its population growth rate of 2.34%. This should help boost Pakistan's per capita and its domestic savings rate.

At the same time, China-Pakistan Economic Corridor (CPEC) related projects are bringing more foreign direct investment, thereby speeding up the economic growth in the country. Pakistan's GDP growth is accelerating from less than 5% two years ago to 6% forecast for fiscal 2017-18.  In its latest economic growth projections, Kennedy School's Center for International Development (CID) at Harvard University expects Pakistan's annual GDP growth to average 5.97% over the next 8 years, ranking it as the world's 6th fastest growing economy. It is within the realm of possibility that economic growth in Pakistan could exceed 7% in the next couple of years.

Summary:

Pakistan has fallen behind Bangladesh and India in per capita income as its growth rates have slipped in recent years mainly due to declining savings and investment rates and security issues.  Demographic trends and improved security situation now favor Pakistan's future growth as its workforce grows and household sizes shrink.

Sunday, September 24, 2017

Pakistani-American to Fellow Overseas Pakistanis: Go Back and Visit

Guest Post by Rashid Ahmad

You should go back and visit. You would be surprised!

Pakistan in your mind may be frozen in time, but real Pakistan has moved on. Everything has changed.

Pakistani Capital Islamabad

You will find both familiarity and alienness there. It would appear to you like a dream. Or perhaps like being on Star Trek Holodeck, where things are familiar but there are new actors on the deck, and you are bit of a stranger.

First thing that would hit you would be the increase in population. Too many people every where, compared to the time you left Pakistan. Some areas that were farms and free spaces when you were there would now be occupied by new housing developments.

The physical appearances would have changed. There would not be any complete transformation to prosperity, but new buildings replacing the old ones, and new motorways, would change the physical reality.

You would find distances have shrunk. The places that seemed far away because you walked to them or went on bicycle, would appear to be so near because now you would travel by car.

Something would sting your heart a bit. Your home where you grew up, would now belong to someone else. When you were growing there, everybody knew it as your father's home, your home, but now if you were to ask directions to your home in your own Mohalla, they will refer to it as some strange family's home! It is your home only in your childhood memories.

You would meet someone, with white beard, bald head, missing teeth, and perhaps walking with a cane, who be introduced to you as your classmate. You would be blown away by the ravages of time, and be grateful for your own health.

A middle aged woman with young children would come to visit you. And she will turn out to be the daughter of a cousin or a friend, who was just an infant at the time you left Pakistan.

Almost anybody you meet would be younger than you!

And finally, as you relive the memories of your childhood, you may find a reason to visit again and again.

Author Rashid Ahmad is a Pakistani-American civil engineer with a Master's degree from UC Davis. Ahmad came to the United States in 1970 and has since been living in Sacramento-Davis area in California. 

Related Links:

Haq's Musings

Pakistani Diaspora in America

Pakistan's Modern Infrastructure

Rising College Enrollment Rate in Pakistan

Pakistan Population Bomb

Upwardly Mobile Pakistan

The Rise of Gated Communities in Pakistan

Rising Standards of Living in Pakistan

Saturday, September 23, 2017

Pakistan PM and Trump at UN; Lahore NA-120 Result

What are Pakistani Prime Minister Shahid Khaqan Abbasi's objectives of his visit to New York? What did he say to the world at UN General Assembly? How was his interview with David Sanger at Council for Foreign Relations in New York? What were his key messages? What cards does Pakistan hold to agree on a mutually-beneficial transactional relationship with the Trump administration in terms of Afghan policy? What are Pakistan's options if Trump does not agree to Pakistan's proposals?

Why did President Donald Trump choose to make a threatening speech at UN General Assembly? What does he hope to accomplish by intimidating Iran and North Korea? Will the US allies go along with Trump's belligerent strategy vis-a-vis Iran and North Korea? How will killing the Iran nuclear deal impact America's chances of reaching a diplomatic solution with North Korea?

Was Kulsoom Nawaz's victory in NA-120 bypolls unexpected?  What do the results mean for the upcoming general elections in Punjab? Does PMLN's significantly reduced majority in NA-120 win send a warning to the ruling party that it faces tough competition from Imran Khan's PTI in future elections? Are the big losses suffered by the PPP and the religious right in NA-120 an indication that Punjab will be a battleground between PMLN and PTI in 2018 elections? Is PPP no longer relevant in Punjab?

Viewpoint From Overseas host Misbah Azam discusses these questions with panelists Ali H. Cemendtaur and Riaz Haq (www.riazhaq.com)

https://youtu.be/HRG45PAHpWw




Related Links:

Haq's Musings

What is the Haqqani Network?

Why is India Sponsoring Terror in Pakistan?

Mullah Mansoor Akhtar Killing in US Drone Strike

Gen Petraeus Debunks Charges of Pakistani Duplicity

Husain Haqqani vs Riaz Haq on India vs Pakistan

Impact of Trump's Top Picks on Pakistan

Husain Haqqani Advising Trump on Pakistan Policy?

Gall-Haqqani-Paul Narrative on Pakistan

Pakistan-China-Russia vs India-US-Japan

Robert Gates' Straight Talk on Pakistan

Thursday, September 21, 2017

Does Pakistan Hold Any Cards in Dealing With Trump Administration?

The U.S. relationship with Pakistan has always been essentially transactional since the early days of the Cold War between the United States and the Soviet Union. What would the quid pro quo look like between Pakistan Prime Minister Shahid Khaqan Abbasi and the Trump administration in the current differences over America's new Afghan policy? Let's try and answer this question.

Transactional History: 

Aid and cooperation has been forthcoming whenever successive American administrations needed something from Pakistan and then suddenly stopped and sanctions imposed on Pakistan when the US goals were accomplished. This happened in 1960s, 1990s and likely to happen yet again now under the Trump administration.

The history of the relationship is such that Pakistan has often been described variously as "the most allied ally" and "the most sanctioned ally" in the last few decades.

Trump's Tough Talk:

U.S. President Donald Trump, a real estate developer, sees all bilateral and multilateral negotiations with other nations through the lens of his experience in real estate deals. The Trump administration has shown itself to be far more transactional with US allies than any previous administration. President Trump is now threatening to get tough with Pakistan after 16 years of Afghan war with no end in sight as the Taliban continue to expand influence in the country. There's talk in Washington about cutting off aid and possible sanctions on Pakistan yet again. What cards does Pakistan hold in any negotiations with the Trump administration? Can Pakistan play hardball with the United States?

Pakistan's Cards:

Speaking at an event organized by the Council of Foreign Relations in New York, Pakistani Prime Minister Shahid Khaqan Abbasi said the following:

"... the (US) military assistance (to Pakistan) is very limited at the moment. In the past, if you want to do an accounting of the past, that can also be done. But I’m telling you that today, for example, over a million (US) sorties are flown by coalition aircraft through Pakistan territory, and we never bill for that. Millions of tons of (US) equipment moves through Pakistan territory on the ground. We never bill for that, because we believe in the war against terror. We supported that coalition, we continue to support efforts to bring peace to Afghanistan. So if we want to go back into history and start accounting for how many dollars were spent, Pakistan, as I said, post-9/11, the most conservative numbers: We lost $120 billion in economic growth."

US-Pakistan Negotiations:

If the Trump administration decides to cut whatever little aid Pakistan receives from the United States, Pakistan could demand significant fees for the use of Pakistani territory by the United States to supply its troops. If the US refuses, Pakistan could simply cut off the NATO supply route as it did back in 2011 after the Salala incident.

Summary:

Given the transactional nature of the relationships the Trump administration seeks, what would a transaction look like between President Donald Trump and Prime Minister Shahid Khaqan Abbasi? It could be in the form of Pakistan continuing to allow the use of its airspace and land routes to supply US troops in Afghanistan for substantial fees that could add up to more than the US aid to Pakistan today. If the US balks at it, Pakistan could simply cut off US supply routes as it did back in 2011 after the Salala incident.

Here's a discussion related to this subject:

https://youtu.be/HRG45PAHpWw




Related Links:

Haq's Musings

What is the Haqqani Network?

Why is India Sponsoring Terror in Pakistan?

Mullah Mansoor Akhtar Killing in US Drone Strike

Gen Petraeus Debunks Charges of Pakistani Duplicity

Husain Haqqani vs Riaz Haq on India vs Pakistan

Impact of Trump's Top Picks on Pakistan

Husain Haqqani Advising Trump on Pakistan Policy?

Gall-Haqqani-Paul Narrative on Pakistan

Pakistan-China-Russia vs India-US-Japan

Robert Gates' Straight Talk on Pakistan

Monday, September 18, 2017

British-Pakistani Actor Riz Ahmed Makes History by Winning Emmy

Emmy award wins this year by British-Pakistani Rizwan Ahmed and Indian-American Aziz Ansari make the duo the first South Asian men to win the prestigious television academy award . It's the equivalent of Oscars given each year by the Motion Pictures Association of America (MPAA).

Riz Ahmed
Rizwan Ahmed, an actor, rapper and activist also known as Riz MC, won his Emmy for Outstanding Lead Actor in a Limited Series or Movie for HBO’s The Night Of.  The show tackles issues of racism and Islamophobia in the United States.

Riz has seen a meteoric rise starting with films like 'The Reluctant Fundamentalist', ‘Four Lions,’ ‘The Road To Guantanamo’ and more recently the Star Wars Anthology film ‘Rogue One’. In April 2017, Ahmed was featured on the cover of Time magazine as one of its 100 most influential people in the world.

Riz was born in London in 1982 to British Pakistani parents who had migrated from Karachi in 1970s. He is a great grandson of Sir Shah Muhammad Sulaiman, the first British Indian to become the Chief Justice of the Allahabad High Court during the British Raj. He is a graduate of Oxford University with a degree in PPE (Philosophy, Politics and Economics). He later studied acting at the Central School of Speech and Drama.

“It’s always strange reaping the rewards of a story that’s based on real world suffering,” Riz said in his acceptance speech at the Emmy's award ceremony. “But if this show has shown a light on some of the prejudice in our society, Islamophobia, some of the injustice in our justice system, then maybe that’s something.”

In addition to Riz Ahmed and Aziz Ansari as award winners, the Emmy Awards show also featured Pakistani-American Kumail Nanjiani, the star of "The Big Sick", on the red carpet.

Although Riz has begun “inching towards the Promised Land,” he still gets stopped and searched before boarding a plane every time he flies to the U.S., he wrote. One person’s win does not fix “a systemic issue of inclusion,” Ahmed told the Washington Post backstage after the Emmys. “I think that’s something that happens slowly over time.”

Related Links:

Haq's Musings

HBO Comedy "Silicon Valley" Stars Pakistani-American

Pakistanis Make Up Largest Foreign-Born Muslim Group in Silicon Valley

Karachi to Hollywood: Triple Oscar Winning Pakistani-American

Burka Avenger: Pakistani Female Superhero 

Dozen British Pakistanis Elected to UK Parliament

Pakistani-American Ashar Aziz's Fireeye Goes Public

Pakistani-American Shahid Khan Richest South Asian in America

Two Pakistani-American Silicon Valley Techs Among Top 5 VC Deals

Pakistani-American's Game-Changing Vision 

Minorities Are Majority in Silicon Valley 

Pakistani-American Population Growth Second Fastest Among Asian-Americans

The Big Sick

Pakistani-American Diaspora Thriving in America

British Pakistani Singer Zayn Malik

Saturday, September 16, 2017

Pakistan Population Boom; Rohingya Ethnic Cleansing

Is Pakistan's growing population a "disaster in the making"? Is it a bigger disaster than the population bust in Europe and East Asia with their aging societies and shrinking labor force? Where will the investment in education, health and job creation come from in Pakistan to meet the growing population? Is there a demographic dividend with Pakistan's labor force growing faster than the overall population? Will growth in labor force help increase domestic savings rate in Pakistan? What is the relationship between GDP growth and job creation? What is Pakistan's employment elasticity relative to other nations in South Asia?

Source: World Bank Report "More and Better Jobs in South Asia"

Who are the Rohingya? Why are they being attacked, raped, killed and driven out of their homes in Rakhine state? Why is the Myanmar government and its allied Buddhist militias, including monks, burning Rohingya villages? Is it a "textbook example of ethnic cleansing" as described by the UN Human Rights chief? Why is Nobel Peace laureate Myanmar leader Aung San Suu Kyi defending these actions instead of using her authority, at least her moral authority, to end this nightmare for the Rohingya? What is the world doing about t? What can and should Pakistan and other Muslim nations do to help their fellow Muslim Rohingya?

Source: Aljazeera

Viewpoint From Overseas host Misbah Azam discusses these and other questions with panelists Ali H. Cemendtaur and Riaz Haq (www.riazhaq.com)

https://youtu.be/ucopTLFQdKY



Related Links:

Haq's Musings

Can Pakistan Economy Add 2 Million Jobs a Year?

Where's the Real Population "Disaster in the Making"? Pakistan or West?

Pakistan's Population Growth: Blessing or Curse?

Pakistan's Expected Demographic Dividend

World Bank Report on Job Growth in Pakistan

Underinvestment Hurting Pakistan's GDP Growth

China-Pakistan Economic Corridor

Musharraf Accelerated Growth of Pakistan's Financial and Human Capital

Working Women Seeding a Silent Revolution in Pakistan



Friday, September 15, 2017

Can Pakistan Economy Add 2 Million Jobs a Year?

About 20 million Pakistanis are expected to enter the labor market over the next 10 years. Can Pakistani economy add jobs at a rate of 2 million a year for the next decade to absorb all new entrants to its work force? What is Pakistan's employment elasticity? How fast must it grow to create these jobs? How much investment is needed to achieve the required growth rate?

Pakistan Labor Market:

Pakistan's work force is about 68 million, according to the World Bank. Its labor force expansion is the 3rd biggest in the world after India's and Nigeria's, according to UN World Population Prospects 2017.  Pakistan's working age population in 15-64 years age bracket is expected to increase by 27.5 million people to 147.1 million in 10 years, according to Bloomberg News' analysis of data reported in UN World Population Prospects 2017.  Pakistan's increase of 27.5 million is the third largest after India's 115.9 million and Nigeria's 34.2 million increase in working age population of 15-64 years old. China's working age population in 15-64 years age group will decline by 21 million in the next 10 years.
Employment Elasticity:

Employment elasticity is a measure of the percentage of new jobs added in the economy for  each percentage point increase in GDP. Employment elasticity of 0.5 means that there is 0.5% growth in jobs for each 1% growth in GDP.

Analysis of the World Bank jobs data shows Pakistan's employment elasticity was about 0.70 in the period from 2000-2010. A little over 5% annual GDP growth enabled the economy to add jobs at a rate of 3.6% a year for the new entrants in the labor market. Since then, Pakistan's GDP growth rate has declined along with a decrease in employment elasticity to about 0.50, according to Asian Development Bank.  The ADB reports says: "With an employment elasticity of GDP growth estimated to be around 0.5, economic growth of at least 7% is required to provide sufficient jobs".

Source: World Bank Report "More and Better Jobs in South Asia"

Savings and Investments:

Rising working age population and growing workforce participation of both men and women in developing nations like Pakistan will boost domestic savings and investments, according to Global Development Horizons (GDH) report. Escaping the low savings low investment trap will help accelerate the lagging GDP growth rate in Pakistan, as will increased foreign investment such as the Chinese investment in China-Pakistan Economic Corridor. Increased savings and investments will not only enlarge the nation's tax base but also help create more jobs for the expected new entrants into the work force as it did in 2000-2010, according to a World Report titled "More and Better Jobs in South Asia".

Economic Growth Rate:

Historic data suggests that it takes investment of 4% of GDP to achieve 1% GDP growth, a capital to output ratio (COR) of 4, according to Pakistani economist Mohsin Chandna.  This COR ratio will require an investment of 28% of GDP to reach 7% economic growth necessary to create over 2 million jobs a year over the next decade.

Pakistan's current savings rate of around 13% will clearly not be sufficient to get to the goals of 28%. This gap will need to be filled by a combination of increased savings rate and substantial increase in foreign direct investment (FDI).

Rising working age population and growing workforce participation of both men and women in developing nations like Pakistan will significantly boost domestic savings and investment. Increased foreign direct investment such as Chinese investment in China-Pakistan Economic Corridor over the next several decades will help fill the gap between the national savings rate and investments required to reach 7% annual GDP growth to create over 2 million jobs a year.

Summary:

Pakistan needs to create over 2 million jobs over the next decade to absorb new workers entering the labor market. With an employment elasticity of 0.5, it will require 7% annual GDP growth. A combination of increased domestic savings and higher foreign investment flows will be needed for investment of 28% of GDP to achieve the required economic growth for sufficient job creation in the country over the next 10 years.

Here's a discussion on this and other subjects:

https://youtu.be/ucopTLFQdKY



Related Links:

Haq's Musings

Pakistan's Labor Force Expansion on Saving, Investments and GDP Growth

Pakistan's Population Growth: Blessing or Curse?

Pakistan's Expected Demographic Dividend

World Bank Report on Job Growth in Pakistan

Underinvestment Hurting Pakistan's GDP Growth

China-Pakistan Economic Corridor

Musharraf Accelerated Growth of Pakistan's Financial and Human Capital

Working Women Seeding a Silent Revolution in Pakistan


Tuesday, September 12, 2017

Apple iOS 11 Supports Nastaliq as Default Font for Urdu

Apple today announced iPhone 8, iPhone 8 Plus and a $1000 iPhone X today, the 10th anniversary of the first iPhone launch, at its new Spaceship-shaped headquarter in Silicon Valley.  iOS 11operating system is also being launched along with the new hardware to support many advanced new features for face identification, wireless charging and augmented reality (AR).  In addition, the OS 11 will include nastaleeq font that is popular with Urdu publishers in Pakistan, according to Silicon Valley based Urdu lover and Nastaliq campaigner Mudassir Azeemi.

History of Nastaliq on Apple:

Apple did include nastaliq font in iOS 9 Beta 1 after a persistent campaign by Mudassir Azeemi. Unfortunately, it was later dropped in the released version of iOS X.  But Mudassir continued his efforts which appear to have born fruit with iOS 11 being released this month. Apple will now drop naskh and support only nastaliq in native mode for rendering Arabic, Persian and Urdu languages.


Naskh vs Nastaliq:

Apple today supports naskh font which are used for Arabic, Persian and Urdu. Most Urdu lovers, however, prefer the beauty of nastaliq font. Here's how South Asian writer Ali Eteraz describes the two fonts:

"Looking at the (rendering of the two fonts), the discerning eye may immediately realize why naskh trumps nastaliq on digital devices. With its straightness and angularity, naskh is simply easier to code, because unlike nastaliq, it doesn’t move vertically and doesn’t have dots adhering to a strict pattern. And we all know how techies opt for functionality. Utility being the mother of expansion, naskh is quickly phasing out nastaliq on the web. BBC-Urdu and Urdu Voice of America both use naskh; so does Alarabiya Urdu. And if you want to write an SMS in nastaliq, you must use naskh as well. Same holds true for social media: Facebook, naskh; Twitter, naskh; blogs, naskh."

Use of Image Files:

Nastaliq lovers like Pakistan's Jang Media Group and others have not given up on their preferred script. Instead of using naskh, they have resorted to using uploaded image files for publishing content on their websites.

Other Platforms:

Unfortunately, none of the other operating systems support nastaliq in native mode yet. They all support naskh which is becoming the dominant font for Urdu along with Arabic and Persian. However, Mudassir Azeemi believes that Apple's decision to only support nastaliq in native mode will influence all operating system vendors and social media apps like twitter and Facebook to start using nastaliq as default for Urdu.

Summary:

Apple's decision to drop naskh and include nastaliq as the default font for Urdu, Arabic and Persian is likely to have a major impact on all operating systems and social media platforms. It's welcome news for Urdu lovers like Ali Eteraz and Mudassir Azeemi who have been deeply unhappy with what they describe as "the death of the Urdu script".

Related Links:

Haq's Musings

Saving Urdu in its Birthplace

Pakistani-American Foundation Releases Khan Academy's Videos in Urdu

Cemendtaur's Book Launch at Urdu Academy in Silicon Valley

US Mining Urdu Content on Facebook, Twitter

Sesame Street Adapted For Pakistan in Urdu

Riaz Haq's Youtube Channel

Sunday, September 10, 2017

Where's the Real Population "Disaster in the Making"? Pakistan or the West?

Multiple western newspaper headlines are screaming of a "disaster in the making" in Pakistan after the latest population census in the country. These headlines beg the following questions:  Is Pakistan's total fertility rate of 2.62 children per woman a bigger disaster than the sub-replacement level of less than 2 children per woman in the West? Are the rapidly aging western societies and declining working population less of a disaster than Pakistan with its younger population and a growing percentage of it in the work force?  To answer these questions, let's consider the following quote:

“So where will the children of the future come from? Increasingly they will come from people who are at odds with the modern world. Such a trend, if sustained, could drive human culture off its current market-driven, individualistic, modernist course, gradually creating an anti-market culture dominated by fundamentalism - a new dark ages.” ― Philip Longman, The Empty Cradle: How Falling Birthrates Threaten World Prosperity and What to Do About It

Fear of Population Bomb:

The above quote captures the true essence of the West's racist fears about what some of them call the "population bomb": East will dominate the West economically and politically for centuries if the growing colored populations of developing Asia and Africa turn the West's former colonies into younger and more dynamic nations with rising education and better living standards.

Much of the developed world has already fallen below the "replacement" fertility rate of 2.1.  Fertility rates impact economic dynamism, cultural stability and political and military power in the long run.

Pakistan Population Pyramid by Age/Gender. Source: Theodora via CIA

Pakistan Population Growth:

Pakistani women's fertility rates have declined significantly from about 4.6 in 2000 to 2.62 babies per woman in 2017, a drop of 43% in 17 years.  It is being driven drown by the same forces that have worked in the developed world in the last century: increasing urbanization, growing incomes, greater participation in the workforce and rising education.  Pakistan now ranks 65 among 108 countries with TFR of 2.1 (replacement rate) or higher.

The latest Census 2017 results show that Pakistan's population growth rate has declined to 2.34% between 1998 and 2017, down from 2.61% (from 1981 to 1998) and 3.4% (from 1961-81). Life expectancy has increased from about 62 years in 1998 to 66.5 years now. The total fertility rate has declined from 4.6 children per woman in 1998 to to 2.62 children per woman in 2017.  At the same time, Pakistan's labor force is growing at a rate of 3.6% a year, faster than the 2.34% overall population growth. Given Pakistan's human capital growth in recent years, it is a welcome situation that is expected to produce significant demographic dividend for the country.

Labor Force Expansion:


Pakistan's labor force expansion is the 3rd biggest in the world after India and Nigeria, according to UN World Population Prospects 2017. Rising working age population and growing workforce participation of both men and women in developing nations like Pakistan will boost domestic savings and investments, according to Global Development Horizons (GDH) report. Escaping the low savings low investment trap will help accelerate the lagging GDP growth rate in Pakistan, as will increased foreign investment such as the Chinese investment in China-Pakistan Economic Corridor. Increased savings and investments will not only enlarge the nation's tax base but also help create more jobs for the expected new entrants into the work force as it did in 2000-2010, according to a World Report titled "More and Better Jobs in South Asia".

Pakistan's Total Fertility Rate 2.62 Children Per Woman. Source: Washington Post 


Source: World Bank Report "More and Better Jobs in South Asia"

Pakistan's working age population in 15-64 years age bracket is expected to increase by 27.5 million people to 147.1 million in 10 years, according to Bloomberg News' analysis of data reported in UN World Population Prospects 2017.  Pakistan's increase of 27.5 million is the third largest after India's 115.9 million and Nigeria's 34.2 million increase in working age population of 15-64 years old. China's working age population in 15-64 years age group will decline by 21 million in the next 10 years.

Source: Bloomberg

Pakistan's labor force growth will continue by adding 80 million workers n 30 years' time, third only to India's 234 million and Nigeria's 130 million additional workers in 15-64 years age group. China's work force will decline by 171 million workers in this time period.

Source: Bloomberg

Savings, Investment and GDP Growth:

Currently, about a third of Pakistan's population is below the age of 15, dependent on working age adults. This high ratio of dependent population results in low savings, low investment and consequent slower economic growth and sub-par socio-economic development.

Source: State Bank of Pakistan

Pakistan's national savings was about 10% of GDP in 1960s. It increased to above 15% in 2000s in Musharraf years, but declined afterwards. It is well below the savings rates in South Asia region with India's 30%, Bangladesh's 28%, and Sri Lanka's 24.5%.

Source: State Bank of Pakistan

Higher levels of inequality in India, Bangladesh and Sri Lanka account at least partially for their higher savings rates than Pakistan's because people in higher income groups tend to save more of what they earn. But the other probably more important reason for Pakistan's lower savings rate is the larger percentage of children under the age of 15 who do  not work and depend on their parents' incomes.

Rising working age population and growing workforce participation of both men and women in Pakistan will boost domestic savings and investments, just as it has in other South Asian nations.

Projected World Population. Source: Nikkei 



Countries With Declining Populations:

115 countries, including China (1.55), Hong Kong (1.17),  Taiwan (1.11) and Singapore (0.8) are well below the replacement level of 2.1 TFR.  Their populations will sharply decline in later part of the 21st century along with the economic growth rates.

 United States is currently at 1.87 TFR, below the replacement rate but still better than China and other developed nations mainly due to immigration.  "We don't take a stance one way or the other on whether it's good or bad," said Mark Mather, demographer with the Population Reference Bureau. Small year-to-year changes like those experienced by the United States don't make much difference, he noted. But a sharp or sustained drop over a decade or more "will certainly have long-term consequences for society," he told Utah-based Desert News National.

Japan (1.4 TFR) and Russia (1.6 TFR) are experiencing among the sharpest population declines in the world. One manifestation in Japan is the data on diaper sales: Unicharm Corp., a major diaper maker, has seen sales of adult diapers outpace infant diapers since 2013, according to New York Times.

Median Age Map: Africa in teens, Pakistan in 20s, China, South America and US in 30s, Europe, Canada and Japan in 40s.


The Russian population grew from about 100 million in 1950 to almost149 million by the early 1990s. Since then, the Russian population has declined, and official reports put it at around 144 million, according to Yale Global Online.
Lancet Population Projection For Top 5 Countries



Reversing Trends:

Countries, most recently China, are finding that it is far more difficult to raise low fertility than it is reduce high fertility. The countries in the European Union are offering a variety of incentives, including birth starter kits to assist new parents in Finland, cheap childcare centers and liberal parental leave in France and a year of paid maternity leave in Germany, according to Desert News. But the fertility rates in these countries remain below replacement levels.

Summary:

Overzealous Pakistani birth control advocates need to understand what countries with sub-replacement fertility rates are now seeing: Low birth rates lead to diminished economic growth. "Fewer kids mean fewer tax-paying workers to support public pension programs. An "older society", noted the late Nobel laureate economist Gary Becker, is "less dynamic, creative and entrepreneurial." Pakistan's labor force growth is forecast to be the 3rd biggest in the world after India's and Nigeria's, according to UN World Population Prospects 2017. Rising working age population and growing workforce participation of both men and women in developing nations like Pakistan will boost domestic savings and investment, according to Global Development Horizons (GDH) report. Escaping the low savings low investment trap will help accelerate the lagging GDP growth rate in Pakistan as will increased foreign investment such as Chinese investment in China-Pakistan Economic Corridor over the next several decades.

Here's a discussion on this and other subjects:

https://youtu.be/ucopTLFQdKY




Related Links:

Haq's Musings

Pakistan's Labor Force Expansion on Saving, Investments and GDP Growth

Pakistan's Population Growth: Blessing or Curse?

Pakistan's Expected Demographic Dividend

World Bank Report on Job Growth in Pakistan

Underinvestment Hurting Pakistan's GDP Growth

China-Pakistan Economic Corridor

Musharraf Accelerated Growth of Pakistan's Financial and Human Capital

Working Women Seeding a Silent Revolution in Pakistan



Friday, September 8, 2017

Journalists Murders in India; BRICs Xiamen Declaration; DACA Repeal

Why was Indian journalist Gauri Lankesh murdered? Who killed her? Why are Modi's Hindu Nationalists supporters targeting public intellectuals and journalists critical of Indian government policies? Why has India joined the reporters without borders' list of the world's most dangerous countries for journalists? Why has Muslim become a "derogatory term" in the words of Indian journalist Anoo Bhuyan? How are anti-Muslim Hindutva trolls using the social media to spew hate and issue threats?

Murdered Indian Intellectuals Since 2014: Narendra Dabholkar, M.M. Kalburgi, Gauri Lankesh and Govind Pansare.
Photos: The Hindu, PTI  
Why did China allow BRICs Xiamen Summit declaration to mention some of the "terrorist" groups targeting India over Kashmir issue? Was this a mistake as claimed by some Chinese think tank analysts like Hu Shisheng of the China Institute of Contemporary International Relations? How will this impact China-Pakistan ties? Is this a success of Modi's campaign to slander and isolate Pakistan?

What is DACA and why did President Trump repeal it? Is it a wise decision from moral and economic viewpoint? Who will be most affected by it? Are there any Indians and Pakistanis among the DACA recipients? Will Congress act before DACA expiration to legalize the status of DACA beneficiaries?

Viewpoint From Overseas host Misbah Azam discusses these questions with analysts Ali H. Cemendtaur and Riaz Haq (www.riazhaq.com)

https://www.youtube.com/watch?v=pFIhMCdguD4




Related Links:

Haq's Musings

Is Modi Succeeding in Isolating Pakistan?

Impact of Trump's DACA Repeal on Pakistanis

Trump's Afghan Strategy: Will Pakistan Yield to US Pressure?

Why is India Sponsoring Terror in Pakistan?

Karan Thapar Debunks Indian Narrative of Kulbhushan Yadav

Modi's Trolls: BJP's Vicious Attack Machine

Gen Petraeus Debunks Charges of Pakistani Duplicity

Husain Haqqani vs Riaz Haq on India vs Pakistan

700,000 Indian Soldiers vs 10 Million Kashmiris

HIndu Nationalism Going Global

Gall-Haqqani-Paul Narrative on Pakistan

Pakistan-China-Russia vs India-US-Japan

Robert Gates' Straight Talk on Pakistan