Friday, July 26, 2024

Can Urban Forests Beat the Heat in Pakistani Cities?

Recent heat-sensing satellite images of Lahore posted by NASA show that "green spaces such as wooded areas, grassy areas, parks, and farm fields were significantly cooler than densely developed areas".  NASA experts explain it as follows: Vegetation and bodies of water do not absorb and re-emit heat as easily as common building materials such as concrete, asphalt, and steel.

Lahore Vegetation (Left) and Surface Temp (Right). Source: NASA

A NASA post titled "Beating the Heat in Pakistan" says that "Differences in surface temperatures between developed and natural areas, known as surface urban heat islands, tend to be more pronounced than temperature differences associated with atmospheric heat islands, particularly during the daytime".    “Surface urban heat islands exacerbate air temperatures by trapping heat and releasing it slowly, especially at night,” explained Muhammad Nasar-u-Minallah, a geographer at the University of the Punjab in Lahore. “The lack of green spaces and vegetation in urban settings further limits natural cooling mechanisms, such as shade and evapotranspiration, intensifying the heat.”

Rapid urbanization and intense development activities in Pakistani cities have worsened the effects of climate change by making the summer heat unbearable.  In response, several urban forest plantation  campaigns have been launched in major Pakistani cities like Lahore and Karachi by both government and non-government entities. 

Nestlé Pakistan launched its first urban forest tree plantation activity at Allama Iqbal Interna­tional Airport with 25,000 trees, under its Nestlé Cares initiative to support endeavors to reduce carbon footprint in its ambition to achieve net zero by 2050, according to media reports.  Leading the volunteer effort, Jason Avanceña, Chief Execu­tive Officer, Nestlé Pakistan has said, “Forests are the lungs of our planet, playing a crucial role in mitigating climate change and preserving biodiversity. How­ever, deforestation and urban­ization have led to the loss of green spaces, impacting our en­vironment and the well-being of our communities. It is our re­sponsibility to reverse this trend and create a more sustainable and livable future.” “We will ac­complish this with additional plantation activities in Lahore, Kabirwala and Sheikhupura. Our strategy aims to help restore for­ests and protect natural habitats while promoting sustainable livelihoods,” he added.

A rundown park in Clifton district of Karachi has seen a new urban forest thriving in the middle of Pakistan's largest city, according to Euronews. "Transformed into a haven for wildlife, the urban forest now boasts 55 different species of plants within just over a hectare of land", says a report published in Euronews. 

The Urban Forest team that planted the Clifton urban forest says they have already created eight mini tree-filled hubs in Karachi and a further 2 in Lahore. And they have plans to expand to other cities in the country. Families living near the forest were among those that offered financial support alongside companies and the German and US consulates in Karachi.

In addition to the urban forests, Pakistan is also planting the world's largest man-made mangrove forest known as Delta Blue Carbon Project. This mangroves plantation will eventually cover 350,000 hectares of Tidal Wetlands on the south-east coast of Sindh. Currently, Pakistan is estimated to have 600,000 hectares of mangrove forest. Mangroves absorb hundreds of millions of tons of atmospheric carbon, reduce the impact of storms on human lives and economic assets, and provide a habitat for fish, birds and other plants supporting biodiversity. It is funded by sales of carbon credits to global polluting industries such as those involved in fossil fuels trade. 



Friday, July 19, 2024

Pakistan's Digital Public Infrastructure (DPI) Initiative Transforming Lives

Pakistan's journey to build a digital public infrastructure (DPI) began in March 2000 with the establishment of NADRA, the National Database and Registration Authority. The Gates Foundation defines DPI as follows: "DPI is a digital network that enables countries to safely and efficiently deliver economic opportunities and social services to all residents. DPI can be compared to roads, which form a physical network that connects people and provides access to a huge range of goods and services...... strong DPI has three foundational systems—identity, payments, and data exchange—that together can make life easier in important ways". 


Digital Public Infrastructure. Source: World Economic Forum


Transformational Impact:

An article recently published on the World Economic Forum website sheds light on how Pakistan's digital public infrastructure is transforming lives in rural Pakistan. Here's how it begins: 

"On a scorching day with temperatures soaring to 42 degrees, Manzoora, a mother from the flood-stricken district of Shaheed Benazirabad, rural Sindh, Pakistan, made a significant leap: she withdrew cash from her own bank account for the very first time. This milestone was made possible through a mobile cash transfer programme initiated by the Sindh government, which partnered with digital service providers to empower citizens like Manzoora. This is just one example of how DPI is changing the lives of millions of Pakistanis". 

An earlier UNDP report  titled "DigitAll: What happens when women of Pakistan get access to digital and tech tools? A lot!" written by Javeria Masood has also described the socioeconomic impact of technology in Pakistan in the following words:

"The world as we know it has been and is rapidly changing. Technology has proven to be one of the biggest enablers of change. There has been a significant emphasis on digital training, tech education, and freelancing in the last several years especially during the pandemic, through initiatives from the government, private and development sectors. Covid-19 acted as a big disrupter and accelerated the digital uptake many folds. In Pakistan, we saw the highest number of digital wallets, online services, internet-based services and adaptability out of need and demand". 

Digital Identity: 

NADRA launched Computerized National Identity Card (CNIC) the same year it was established. It uses biometric data and personal information to confirm the identity of the cardholder as a citizen of Pakistan. The CNIC card is used across the country for voting in elections, opening bank accounts, issuing passports, getting driver's licenses, registering marriages and divorces, completing real estate transactions, participating in social safety net programs like Benazir Income Support, obtaining mobile phone numbers/sims, purchasing tickets for airlines and railways, etc etc. 

The introduction of CNIC was a "foundational change, positioning Pakistan among a select group of nations equipped to manage comprehensive digital identities for over 240 million citizens", according to the World Economic Forum. Within four years of launching the Benazir Income Support Program (BISP) – a social protection initiative to alleviate poverty – CNIC issuance to adults increased by 72%. 


Pakistan Instant Payment System. Source: State Bank of Pakistan


Payments:

Digital identity enables payments from the government to citizens as well as financial transactions among individuals, businesses and government entities. The introduction of RAAST, an instant low-cost payment system launched in 2021 by the State Bank of Pakistan, has spurred digital payments in the country.  It seamlessly and securely connects government entities, a variety of banks, including microfinance banks (MFBs),  electronic money institutions (EMIs) and State Bank authorized payment service providers (PSPs). 

QR Codes: 

This year, the State Bank of Pakistan has launched P2M (Person to Merchant) services. These allow people with electronic wallets in their mobile phones to pay for goods and services using merchants' QR codes. “The P2M service will enable payment acceptance by businesses using quick response (QR) codes, Raast Alias, IBAN and request to pay (RTP),” the Central Bank said in an announcement. 

"All REs (regulated entities) shall enable…capabilities for processing P2M transactions via their delivery channels including mobile apps, internet banking portals and USSD channels (where applicable) by March 01, 2024." The central bank asked Raast merchant service providers (MSPs) to ensure that customers are not charged any fee on their purchases, by merchants or third parties.

"MSPs may…charge a reasonable fee from merchants for the services provided; however, they are encouraged to initially waive off such charges to promote merchant adoption."

RAAST Uptake:

Raast, the State Bank of Pakistan's Instant Payment System, is playing an important role in facilitating free, convenient and secure real-time transactions across the country, according to a report published by the State Bank of Pakistan. During Q3 of FY24,  Raast processed 140 million transactions totaling Rs. 3,437 billion.

Digital transactions took center stage in Pakistan's financial landscape during Q3 FY 2023-24, capturing a commanding 83% of 844 million total retail payments processed by Banks and Electronic Money Institutions (EMIs), while the remaining 17% were Over-the-Counter (OTC) transactions at banks’ branches, reports Mettis Global

Pakistan National Socioeconomic Registry. Source: Maintains

National Socioeconomic Registry:

The National Socio-economic Registry has been created . It will be regularly updated to keep it current and deliver services to the Pakistanis most in need. The effort started in earnest in 2020 to hand out Rs. 12,000 per family to 3 million most affected by the COVID19 lockdown. Here's how a Pakistani government website describes the digital registry architecture:

"The Cognitive API architecture for Ehsaas’ National Socio-Economic Registry 2021 is one of the six main pillars of ‘One Window Ehsaas’. With the survey, which is building the registry currently 90.5% complete nationwide, Ehsaas is firming up its plans to open data sharing and data access services for all executing agencies under the Poverty Alleviation and Social Safety Division (PASSD). Data sharing will be done through the Cognitive API Architecture approach. The deployment of Ehsaas API architecture for data sharing will allow executing agencies to access data from the unified registry in real-time to validate beneficiary information. This will empower them to ascertain eligibility of potential beneficiaries". 

DPI Future Plans:

In future, Pakistan is set to launch several ambitious DPI initiatives, including expanding the RAAST payment system, implementing a nationwide digital health records system, and launching a blockchain-based land registry. These projects promise to drive efficiency and transparency across multiple sectors, positioning Pakistan as a pioneer in the global digital landscape, according to a report by the World Economic Forum


Monday, July 15, 2024

Ambani Wedding: Billionaires, BJP and Bollywood

Last few months have seen a grotesque display of obscene wealth in India, a country with well-documented levels of extreme povertyhunger and unemployment. Indian billionaire Mukesh Ambani has splurged hundreds of millions of dollars on his son's wedding attended by top politicians including Prime Minister Narendra Modi, Hollywood and Bollywood celebrities and Ambani's fellow billionaires who have accumulated vast amounts of wealth in one of the world's most unequal countries.  Experts blame it on Mr. Modi's policies promoting crony capitalism.  Viral Acharya, former deputy governor of Reserve Bank of India, told the BBC that their ability to acquire large distressed companies, a growing appetite for mergers and acquisitions, and India's conscious industrial policy of creating "national champions via preferential allocation of projects and in some cases regulatory agencies turning a blind eye to predatory pricing".

Indian Prime Minister Modi at the Ambani Wedding in Mumbai. Source: ANI

Between 2014-15 and 2022-23 on Mr. Modi's watch, the rapid rise in inequality in India has been particularly striking in terms of wealth concentration, according to World Inequality Lab. The top 1% now control over 40% of total wealth in India, up from 12.5% in 1980, and they earn 22.6% of total pre-tax income, up from 7.3% in 1980.  Almost 90% of the country's billionaire wealth has been found concentrated in the hands of the upper castes. The Inequality Report concludes: "This spectacular rise of inequality (in India) makes the “Billionaire Raj” headed by India’s modern bourgeoise more unequal than the British Raj headed by the colonialist forces. It also squarely places India among the most unequal countries in the world". 

Bollywood, the powerful Indian film industry, has become a key enabler of BJP's billionaire-friendly and   Islamophobic policies. In a piece titled “India's theatrical politics: Bollywood, billionaires and the BJP", authors Sehr Rushmeen and Wanya Sidhu write: "By shaping narratives that subtly endorse “Hindutva” ideologies, sometimes even employing Muslim actors to deliver skewed messages, Bollywood contributes to a socio-political echo chamber in favor of Modi’s BJP...... Bollywood movies transcend mere entertainment; they convey narratives cleverly crafted to align with the BJP’s political agenda. By consistently portraying Muslims and Pakistan in a negative spotlight, these Indian blockbusters perpetuate a cycle of fear and nationalistic fervor to garner votes for the BJP while discarding the imperative of forging national unity".

Meanwhile, India's child-wasting rate of 18.7% is the highest in the world, according to the Global Hunger Index (GHI) 2023 released last year.  The South Asian country’s child wasting rate is higher than that of war-torn Yemen (at 14.4%) and Sudan (at 13.7%), which are ranked second and third in the world. Pakistan's child wasting rate is 8%.  It represents the share of children under age five who have low weight for their height, reflecting acute undernutrition.  The child wasting rate of the South Asia region is 14.8%, the highest of any world region and more than twice the child wasting rate of Africa. India is home to a quarter of the world's most undernourished people. According to the United Nations, India has nearly 195 million undernourished people. This is more than any other country, including China. 

India Tops in Child Wasting Rate. Source: The Wire


India Tops the World in Child Wasting. Source: Global Hunger Index 2023


India's Hindu Nationalist government  of Prime Minister Narendra Modi wants to project India as a superpower launching moon missions and hosting G20 summits. Since the GHI 2023 report runs counter to this PR exercise, New Delhi has rejected its findings. But its own National Family Health Survey 5 (NFHS 5) says that "Thirty-six percent of children under age five years are stunted; 19 percent are wasted; 32 percent are underweight; and 3 percent are overweight. Children born to mothers with no schooling and children in the lowest wealth quintile are most likely to be undernourished". 

Overall, India ranks at the 111th position out of 124 countries, with neighboring Pakistan (102nd), Bangladesh (81st), Nepal (69th) and Sri Lanka (60th) faring better than India in the index. India has slipped four notches from its 107th position in 2022.

India has slipped 4 places, from 107 in 2022 to 111 in 2023, on GHI. Pakistan's ranking has also slipped 3 places, from 99 to 102.  It is not a huge surprise since the country is still facing the aftermath of the disastrous floods of 2022. It is also suffering from a serious economic crisis. Meanwhile, India's Modi government is making claims to being the world's fastest growing economy. And yet, Indian children are the most malnourished in the world. 

India Malnutrition Indicator Trends. Source GHI 2023

Pakistan Malnutrition Indicator Trends. Source GHI 2023


There's a close relationship between hunger and poverty. At the $3.65 poverty line, India accounts for 40% of the slight upward revision of the global poverty rate from 23.6% to 24.1%, according to the World Bank September 2023 Global Poverty Update. It is the same update that made the following recent headline in the Indian and Pakistani media about Pakistan: "Pakistan's 40% Population Lives Below Poverty Line, Says World Bank". Fact: 45.9% of Indians and 39.4% of Pakistanis live below the $3.65 a day poverty line as of September, 2023, according to the latest World Bank global poverty update that takes into account the impact of inflation on poverty rates. But neither the Pakistani media nor India's compliant "Godi Media" reported it. Nor did they question why poverty in India is growing despite the Modi government's claim to be "the world's fastest growing economy". 

Related Links:


Haq's Musings

South Asia Investor Review

Pakistan Among World's Largest Food Producers

Pakistan Floods 2022

Food in Pakistan 2nd Cheapest in the World

India in Crisis: Unemployment and Hunger Persist After COVID

India Rising, Pakistan Collapsing

Record Number of Indians Seeking Asylum in US

Vast Majority of Pakistanis Support Imran Khan's Handling of Covid19 Crisis

Incomes of Poorest Pakistanis Growing Faster Than Their Richest Counterparts

Pakistanis Consuming More Calories, Fruits & Vegetables Per Capita 

How Grim is Pakistan's Social Sector Progress?

Pakistan Fares Marginally Better Than India On Disease Burdens

COVID Lockdown Decimates India's Middle Class

Pakistan Child Health Indicators

Pakistan's Balance of Payments Crisis

How Has India Built Large Forex Reserves Despite Perennial Trade Deficits

Riaz Haq's Youtube Channel

Wednesday, July 10, 2024

Solar Power Boom in Pakistan

Falling solar panel prices and soaring rates for grid electricity are driving a renewable power boom in Pakistan. A second factor spurring the growth in clean energy installations is the requirement of major western apparel brands for garments and textile manufacturers to switch to clean energy. As a result, the solar panel imports in the country jumped from 2,800 MW in 2022 to 5,000 MW in 2023, in spite of stringent import controls imposed by the government. Solar imports are on track to reach 12,000 MW in 2024, according to solar installers. The total current installed generation capacity in Pakistan is around 40,000 MW. Grid electricity demand in Pakistan plunged in 2023 by nearly a sixth and a decline in 2024 would mark the first time in 16 years that annual electricity use has fallen consecutively, data from energy think tank Ember showed, according to Reuters.

Pakistan Solar Panel Imports. Source: PV Magazine


Omar Malik, the CEO of Shams Power, a major solar system contractor in Pakistan, was recently quoted by PV Magazine as saying: “In 2022, 2.8 GW of solar panels were imported into Pakistan. In 2023, about 5 GW, despite the import controls, and this year the prediction is for up to 12 GW”. 

Aamir Hussain, chairman Pakistan Alternative Energy Association, told Arab News that solar panels of around 1,800 MW were purchased and installed last year, which was expected to jump to 3,000 MW this year due to the lower prices of the panels and increased customer demand.

 “Pakistan will be spending over $3.5 billion [this year] on solar panel imports only as this doesn’t include import of batteries, inverters and other auxiliary items,” Hussain said. “Pakistan needs to follow consistent policies regarding renewable energy to meet its national and international obligations for the greenhouse gas emissions.”

Japanese publication Nikkei Asia recently reported seeing residential building rooftops covered with solar panels in Islamabad. It also reported proliferation of rooftop solar in small towns and villages across the country. In particular, the Nikkei story mentioned the remote village of Kardigap with a population of 5,000, in Balochistan province, where solar panels are becoming more common on the rooftops of houses. 

Responding to western apparel brands' demand for sustainability, a number of large Pakistani textile manufacturers are switching to clean energy, particularly solar. Tayyab Group of Industries (TGOIs), a major textile manufacturer, has recently signed an MOU to install a 20 MW solar system for its needs. Gul Ahmed Textile Mills Limited announced recently that it will install a 17.1 MW roof-top solar power plant to meet its energy needs.

While rapid uptake of solar is good news for the planet, it does create a major fiscal issue for the Pakistani government struggling to pay for power produced by the independent power producers (IPPs). The IPPs, many of them Chinese, secured a guaranteed return on investment indexed to the U.S. dollar, plus payment for fixed capacity charges -- covering their debt servicing and other fixed costs -- regardless of whether the power plants are operational, according to Nikkei Asia. As the demand for the grid power from the IPPs declines with rising solar, the taxpayers are still on the hook for the unused installed capacity charges running into billions of dollars. Higher power tariffs and taxes will only make the situation worse. 

Capping Net Metering power and reducing payments for supplying excess power to the grid are not going to solve the problem either. It will only encourage more consumers to switch to rooftop solar and use less electricity from the grid. Self consumption of the rooftop solar power saves significant energy costs for the consumer. 

It seems the only way forward for the Pakistan government is to renegotiate the terms with the IPPs to significantly reduce grid power costs to address the growing cost gap between rooftop solar and the grid power. 

Related Links:

Haq's Musings

South Asia Investor Review

Clean Energy Revolution in Pakistan

Pakistan Electric Vehicle Policy

Nuclear Power in Pakistan

Recurring Cycles of Drought and Floods in Pakistan

Pakistan's Response to Climate Change

IPP Contacts Bankrupting Pakistan

Renewable Energy for Pakistan

Net Metering in Pakistan

LNG Imports in Pakistan

Growing Water Scarcity in Pakistan

China-Pakistan Economic Corridor

Ownership of Appliances and Vehicles in Pakistan

CPEC Transforming Pakistan

Pakistan's $20 Billion Tourism Industry Boom

Riaz Haq's YouTube Channel

PakAlumni Social Network

Thursday, July 4, 2024

Pakistani Stock Market is the World's Best Performing Market in 2024

Pakistan's KSE-100 shares index topped 80,000 points on Wednesday as stocks climbed more than 600 points, making it the world's best performing stock market. The benchmark KSE-100 index has posted an annual return of 89% during FY24 (July 2023-June 2024) in PKR terms while in US dollar terms, the return was 94%, as the Pakistani rupee appreciated against the US dollar, according to Pakistani media reports.  This outstanding market performance is generally being seen as a consequence of a series of unpopular decisions  by the military-backed government of Prime Minister Shahbaz Sharif to carry out economic reforms to win the IMF support. 

Pakistani Stock Market Outperforms Asian Peers. Source: Bloomberg

Specifically, some analysts attribute the record increase in Pakistani share prices to multiple factors, ranging from the government's investor-friendly budget to the expectation of closing a longer term IMF deal. Others believe the relatively low price-earnings (P/E) multiples of Pakistani stocks make them attractive to investors. 

Awais Ashraf, director of research at AKD securities, attributed the stocks upward momentum to “expected entry into the larger IMF program and expected monetary easing boosting investor confidence in equities”, according to Dawn newspaper

“The majority increase in return is attributed to re-rating of Price to Earning (PE) from 2.2-2.4x in June 30, 2023 to 3.94x in Jun 28, 2024,” said a Pakistani investment firm Topline Securities in its report. It attributed the PE multiple re-rating to “improving economic indicators, i.e. increase in exports and remittances by 11% and 9%, respectively in 11MFY24, decline in inflation from peak of 38.0% in May-23 to 11.8% in May 2024.”

Foreign portfolio investors are coming back to Pakistan’s debt and equity markets after a prolonged absence, marking a significant shift in market sentiment, according to a report in The Express Tribune newspaper. The short-term external investment has surged by a remarkable 84%, catapulting to a 30-month high, now standing at Rs 501.30 billion (US$ 1.8 billion) .

There is a distinct difference in how the new budget, compliant with the IMF requirements, has been received by the ordinary public compared to the investor class. Higher taxes on consumption in the new budget have angered most consumers but the prospects of  lower fiscal deficits and significant macro-economic improvements are generally being welcomed by investors. The government, backed by the Pakistani military, sees the need to improve the macro-economic indicators as essential to improving the long-term health of the national economy

Related Links:

Thursday, June 27, 2024

Growing Pakistani Diaspora in North America

The US government granted 16,320 immigrant visas to Pakistani nationals. Another 11,861 immigrant visas were given to Pakistanis by the Canadian government in the same period.  The total number of new Pakistani immigrants admitted as permanent residents in North America in 2023 was 28,181. 

There are currently over a million Pakistanis living in North America. These include 687,942 Pakistanis in America as of 2020, according to the US Census. And 303,260 Pakistanis residing in Canada as of 2021, according to Statistics Canada. There are nearly 6 million people from India living in North America, according to government data. 


Pakistani Diaspora in North America. Source: US, Canadian Governments

Non-immigrant visas issued annually by the US government to Pakistani passport holders have almost doubled over the last 5 years, from 40,679 in 2018 to 80,852 in 2023, according to Gallup Pakistan. Meanwhile, immigrant visas issued annually to Pakistani citizens have increased by about 60% in the last 5 years, from 10,114 in 2018 to 16,320 in 2023. 

Pakistani immigrants make up the 25th largest group in America, far behind immigrants from Mexico, India and China. In Canada, Pakistani immigrants are the 5th largest group of foreign-born residents. 

Top 8 Source Countries of Foreign Students in US. Source: IIE OpenDoors

Pakistani student enrollment in America's institutions of higher learning rose 16% last year, outpacing the record 12% growth in the overall number of international students hosted by the country. This puts Pakistan among eight sources in the top 20 countries with the largest increases in US enrollment. India saw the biggest increase at 35%, followed by Ghana 32%, Bangladesh and Nepal at 28% each, Pakistan 16%, Colombia 13%, Italy 10% and Spain 5%. 

"During 2022-2023, there were 10,164 Pakistani students, compared to 8,772 in the previous year, indicating an impressive 16% increase," according to IIE Open Doors Report for 2022-23. There has been an overall 33% increase in enrollment of Pakistani students in US colleges and universities. 

The average annual household earnings of Pakistani-Americans are $149,178, according to the latest update issued by the United States Census Bureau for 2022. The update estimates the median income of 132,958 Pakistani-American households at $106,281. Average is calculated by adding up all incomes and dividing it by total number of households. Median income level divides the top 50% of families from the bottom 50%.  It shows that Pakistani-American household incomes are roughly at par with the Asian-American households' median of $104,646 and average of $149,363. The highest income ethnic group in the US are Asian Indian households with a median of $152,341 and average of $197,732.  Asians are significantly richer than Whites (mean $78,636, average $112,415) and African Americans (mean $52,238, average $76,888). The word "alone" in the labels in the following table excludes mixed race households. 

South Asian Americans Households. Source: US Census Update 2022


Asian Americans are the best educated racial group in the United States. From 2012 to 2022, the percentage of adults age 25 and older with a bachelor’s degree or more increased from 34.5% to 41.8% for the non-Hispanic White population; from 21.2% to 27.6% for the Black population; from 51% to 59.3% for the Asian population; and from 14.5% to 20.9% for the Hispanic population, according to the US Census
Educational Attainment By Racial Groups (Source: US Census)


Among Asian Americans, the Indians (three quarters) have the highest educational attainment with at least a bachelor's degree, followed by Koreans and Pakistanis (about 60%), followed by the rest.  

Asian American Educational Achievement by Countries of Origin. Source: US Census


Asians, including Chinese/Taiwanese, Indians and Pakistanis, tend to be concentrated in STEM (Science, Technology, Engineering and Technology) fields where incomes are generally much higher than in other occupations. 

As of 2019, there were 35,000 Pakistan-born STEM workers in the United States, according to the American Immigration Council. They included information technologists, software developers, engineers and scientists. These figures do not include medical doctors and healthcare workers. 

Foreign-Born STEM Workers in America. Source: American Immigration Council

Foreign-born workers make up a growing share of America's STEM workforce. As of 2019, foreign-born workers made up almost a quarter of all STEM workers in the country. This is a significant increase from 2000, when just 16.4% of the country’s STEM workforce was foreign-born. Between 2000 and 2019, the overall number of STEM workers in the United States increased by 44.5 percent, from 7.5 million to more than 10.8 million, according to American Immigration Council

India and Pakistan Among Top 10 Countries Receiving US Immigrant Visas. Source: Visual Capitalist


India topped the top 10 list of foreign-born STEM workers with 721,000, followed by China (273,000), Mexico (119,000), Vietnam (100,000), Philippines (87,000), South Korea (64,000), Canada (56,000), Taiwan (53,000), Russia (45,000) and Pakistan (35,000).  Enormous number of Indian STEM workers in the United States can at least partly be attributed to the fact that India's "body shops" have mastered the art of gaming the US temporary work visa system. Last year, Indian nationals sponsored by "body shops" like Cognizant, Infosys and TCS received 166,384 H1B visas for work in the United States. By comparison, only 1,107 Pakistanis were granted H1B visas in Fiscal Year 2022.  In addition to H1B work visas, 9,300 Indian nationals and 7,200 Pakistani nationals received immigrant visas to settle in the United States as permanent residents in 2021. 

Doctor Brain Drain. Source: Statista

In addition to 35,000 Pakistan-born STEM workers, there were 12,454 Pakistan-born and Pakistan-trained medical doctors practicing in the United States, making the South Asian nation the second largest source of medical doctors in America.  Pakistan produced 157,102 STEM graduates last year, putting it among the world's top dozen or so countries. About 43,000 of these graduates are in information technology (IT).

H1B Visas Issued in Pakistan. Source: Visagrader.com



Every year, applicants sponsored by Indian body shops claim the lion's share of H1B visas. In 2022, Indians received 166,384 new H1B visas, accounting for nearly three quarters of all such visas issued by the US government. The figures reported as India IT exports are in fact the wages earned by millions of Indian H1B workers in the United States.  

Many developing countries are experiencing brain drain. But India is losing its best brightest at a much faster rate than others. Some call it "The Great Indian Brain Drain". This is the reason why Indians in the United States are the best educated and the highest earning group.  In a recently published book titled "The Other One Percent", authors Sanjoy Chakravorty, Devesh Kapur and Nirvikar Singh explain this phenomenon. 

They write that the vast majority of Indians who migrate to the United States are from privileged backgrounds in terms of caste, class and education. They have gone through “a triple selection” process that gave Indian-Americans a boost over typically poor and uneducated immigrants who come to the United States from other countries. The first two selections took place in India. As explained in the book: “The social system created a small pool of persons to receive higher education, who were urban, educated, and from high/dominant castes.” India’s examination system then selected individuals for specialized training in technical fields that also happened to be in demand in the United States. Kapur estimated that the India-American population is nine times more educated than individuals in the home country. Here's an excerpt of it:

"A major focus of this book is on demonstrating and understanding the multiple selections that shaped the Indian-American population. These selections applied not only to education (that, in terms of attaining college degrees, made the India-born population three times more educated than that in the host country and nine times more educated than the home country’s population) but also to class and caste (favoring, by large margins, the “upper” and dominant classes and castes of India), profession (engineering, IT, and health care), and both the region of origin (Gujarati and Punjabi were overrepresented in the first two phases, and Telugu and Tamil in the third phase) and region of settlement (in specific metropolitan clusters in and around New York City, the San Francisco Bay Area, Chicago, Washington, D.C., and Houston and Dallas). In addition to direct selection is what we call the “selection+” advantage: we suggest that group characteristics or norms, such as the fact that Indians had the highest propensity to live in married-couple households of any major immigrant group, added to the advantages of being an already selected group. We show, in particular, how family norms were useful in keeping the Indian-American poverty level low (under 5 percent) and family income high (the highest in the United States). It is also likely that the selection process enabled, without explicitly intending to, the generation of high levels of social capital (through linguistic/ professional networks such as Gujarati entrepreneurs in the hotel industry, Telugu and Tamil workers in the IT industry, IIT engineers, Malayali nurses, Bengali academics, etc.)"

Related Links:



Thursday, June 20, 2024

Are Some Pakistanis Feeding into Indian Delusions of Grandeur?

Many Pakistanis are singing effusive praises of India on social media platforms and racking up millions of views, according to a report in the Indian  mainstream media. These Pakistanis are boosting their earnings by feeding into the Indians' delusions. The "India Today" report claims that, in the last 6 months alone, the number of channels using the hashtag #pakistanireactiononindia on YouTube increased by 1,000, and the number of videos by 5,000. Calling it an "industry" is an acknowledgment of the profit motive of the Pakistani YouTubers. These YouTubers steer clear of anything that even remotely challenges their unadulterated praise of India. For example, they make no mention of India ranking worse than Pakistan on income poverty, hunger and overall happiness. Nor do they talk about thousands of Indian farmers killing themselves every year.  Nor do they mention extremely high levels of unemployment in Modi's India. 

Modi Claims "chhappan inch ki chhati" (56 inch chest)

India's Population:

India is the world's most populous country with a population (1.4 billion) over 6 times larger than Pakistan's (230 million). India has the world's largest number of social media users and hundreds of millions of book readers. The profit motive for praising India extends beyond just the social media. It also includes book publishers and authors who see an opportunity to profit from it. India's English language book market is the world's third largest, behind that of the United States at the top and of the United Kingdom at number 2.  It is the fastest growing market today which will make India the world's number 1 market in the next ten years.  It could happen sooner if the book sales in the US and the UK decline faster or those in India grow more rapidly than they are already.

Indian Delusions: 

Delusions are a symptom of mental disorders, and are characterized by a belief in something that is not true. Here's how India Today describes what it calls "The Praise India Industry" and how it is received by Indians: 

"Indians love people from abroad lauding their achievements, but seem to derive the biggest satisfaction when Pakistanis gush over India's success. Pakistanis have understood that and have tapped into that, creating an entire industry of YouTubers in Pakistan". 

India's leaders and their western boosters have been promoting the country as an emerging superpower to counter rising China. They cite the size of India's economy, demography, military and consumer market to back up their assertions. These claims are challenged by India's former chief economic advisor Arvind Subramanian and Josh Felman, former head of IMF in India, in an article titled "India's Size Illusion".  In a similar article titled "The Chinese Threat No One Is Talking About — And How to Counter It", Sameer Lalwani, a senior fellow for Asia strategy at the Stimson Center, has raised serious questions about India's ability to counter China in the Indian Ocean region. 

Akhand Bharat (Greater India) Mural in India's New Parliament Building

Modi's 56 inch Chest:

"Desh ka bahut nuksaan hua hai", acknowledged Indian Prime Minister Narendra Modi after his military's 2019 failures against Pakistan in Balakot and Kashmir. This marked a major shift in Modi's belligerent tone that has been characterized by his boasts of "chhappan inch ki chhati" (56 inch chest) and  talk of  "munh tor jawab" (jaw-breaking response) and "boli nahin goli" (bullets, not talks) to intimidate Pakistan in the last few years.  These events should force India's western backers to reassess their strategy of boosting India as a counterweight to China.

India's Illusions:

Indian government's former Chief Economic Advisor Arvind Subramanian has enumerated and challenged arguments for what he calls "India's Size Illusion" as follows:

1. India’s economic size has not translated into commensurate military strength. Part of the problem is simple geography. (German Chancellor Otto Von) Bismarck (1815-1898) supposedly said that the US is bordered on two sides by weak neighbors and on two sides by fish. India, however, does not enjoy such splendid isolation. Ever since independence, it has been confronted on its Western frontier by Pakistan, a highly armed, chronically hostile, and often military-ruled neighbor. More recently, India’s northern neighbor, China, also has become aggressive, repudiating the territorial status quo, occupying contested land in the Himalayas, reclaiming territory in the east, and building up a large military presence along India’s borders. So, India may have fish for neighbors along its long peninsular coast, but on land it faces major security challenges on two fronts.

2.  Then there is the question of market size. As Pennsylvania State University’s Shoumitro Chatterjee and one of us (Subramanian) have shown, India’s middle-class market for consumption is much smaller than the $3 trillion headline GDP number suggests, because many people have limited purchasing power while a smaller number of well-off people tend to save a lot. In fact, the effective size of India’s consumer market is less than $1 trillion, far smaller than China’s and even smaller relative to the potential world export market of nearly $30 trillion.

Indo-Pacific Dominance:

In an article titled "The Chinese Threat No One Is Talking About — And How to Counter It", Sameer Lalwani, a senior fellow for Asia strategy at the Stimson Center, has raised serious doubts about India's ability to counter China in the Indian Ocean region. Here are a couple of excerpts from the article:

1. China has been building dozens of advanced warships that seem poised to head toward the vast body of water through which 80 percent of global seaborne trade transits.....Indeed, a deeper (US) partnership with India — the world’s largest democracy, on an upward economic trajectory, seemingly perfectly positioned to counter China on land and at sea — has been something of a holy grail for at least four U.S. administrations.......Yet what former Secretary of State Hillary Clinton a decade ago called a “strategic bet” on India does not seem to be paying off. Indian naval and political power in the Indian Ocean region is faltering, giving way to influence by Beijing. Many of these problems are of India’s own making.

2. There is increasing discussion and advocacy among China’s foreign policy scholars and former officials about an Indian Ocean fleet. Indeed, the idea is consistent with China’s efforts to acquire military facilities in the Horn of Africa, on Pakistan’s Indian Ocean coast, in Myanmar and in the UAE, which offers access to the Persian Gulf. China has also engaged in intelligence collection efforts in the region and increased its port visits and diplomatic presence.

India's "Accidental" Missile Firing:

India's March 9 "accidental firing" of Brahmos nuclear-capable supersonic cruise missile into Pakistan has raised serious questions about the safety of the Indian nuclear arsenal. Do the people in charge of India's nukes have basic competence to handle such weapons? Was this really an "unauthorized" or "accidental" firing? Why was there a long delay by New Delhi in acknowledging the incident?  Could Pakistan be blamed if it assumed that extremist right-wing Hindu elements had taken control of the missile system in India and fired it deliberately into Pakistani territory? Has the Indian government risked the lives of 1.6 billion people of South Asia?

Could this "errant" missile have brought down commercial passenger planes that were in the air at the time of this "accidental" firing? Here's an excerpt from Bloomberg detailing air traffic in the flight path of the Indian Brahmos:

"Several planes passed through the direct trajectory of the missile that day, which flew from the Indian garrison town of Ambala and ended up in Mian Channu in Eastern Pakistan. They included a Flydubai jet heading to Dubai from Sialkot, an IndiGo plane going from Srinagar to Mumbai and an Airblue Ltd. flight from Lahore to Riyadh. All crossed the missile’s trajectory within an hour of its accidental launch, data from flight-tracking application Flightradar24 show.  Other international flights in the vicinity of the missile’s trajectory -- and within its range -- included a Kuwait Airways Co. jet heading to Guangzhou, China from Kuwait City, a Saudi Arabian Airlines flight to Riyadh from New Delhi, and a Qatar Airways service from Kathmandu to Doha, the data show. No advisory to pilots operating in the vicinity -- known as a notice to airmen or NOTAM -- was issued". 

India: A Paper Elephant:

In an article titled "Paper Elephant", the Economist magazine talked about how India has ramped up its military spending and emerged as the world's largest arms importer. "Its military doctrine envisages fighting simultaneous land wars against Pakistan and China while retaining dominance in the Indian Ocean", the article said. It summed up the situation as follows: "India spends a fortune on defense and gets poor value for money".

After the India-Pakistan aerial combat over Kashmir in 2019, New York Times published a story from its South Asia correspondent headlined: "After India Loses Dogfight to Pakistan, Questions Arise About Its Military".  Here are some excerpts of the report:

"Its (India's) loss of a plane last week to a country (Pakistan) whose military is about half the size and receives a quarter (a sixth according to SIPRI) of the funding is telling. ...India’s armed forces are in alarming shape....It was an inauspicious moment for a military the United States is banking on to help keep an expanding China in check".

Related Links:

Haq's Musings

South Asia Investor Review

Guess Why Pakistani Analyst Uzair Younus is Making Headlines in India!

Ambassador Kishore Mahbubani: America Does Not Respect India

World Happiness Report: India Among Saddest Nations of the World

Balakot and Kashmir: Fact Checkers Expose Indian Lies

WB Poverty Update: India Biggest Contributor to Increase in Poverty

India in Crisis: Unemployment, Hunger Persist After Waves of Covid

Modi's Blunders and Delusions 

India's Israel Envy: What If Modi Attacks Pakistan?

Project Azm: Pakistan to Develop 5th Generation Fighter Jet

Pakistan Navy Modernization

Pakistan's Sea-Based Second Strike Capability

Who Won the 1965 War? India or Pakistan?

Is the West Unwittingly Helping Modi Realize His Akhand Bharat Hindutva Dream?

Has Pakistan Lost All Wars? 



Thursday, June 13, 2024

Agriculture: A Rare Bright Spot in Pakistan's Economy

Pakistan's agriculture sector grew 6.3% in 2023-24, far outpacing the overall economy that grew just 2.38%, according to the Economic Survey of Pakistan 2023-24.  This is good news for about 40% of the country's population working in the agriculture sector. By contrast, India's agriculture growth slowed to 1.2% in recent quarters. Studies have shown that strong growth in agriculture helps reduce poverty in developing nations like India and Pakistan. 

Snapshot of Pakistan's Economy. Source: Economic Survey of Pakistan 2023-24


The agriculture growth in Pakistan was the highest in 19 years. All major crops saw significant increases. Wheat output jumped 11.6% from 28.2 million tons last year to 31.4 million tons this year, the economic survey said. Cotton, severely damaged by floods and rains last year, reached 10.2 million bales compared to 4.9 million bales last year, growing by 108.2%. Rice output also saw a significant increase — up by 34.8% — reaching 9.9 million tons compared to 7.3 million tons. 

Strong crop output is in part the result of higher yields from increased water and fertilizer availability to farmers, according to the economic survey. 

The survey said the water availability during Kharif 2023 increased to 61.9 million acre-feet (MAF) from 43.3 MAF in Kharif 2022 (when the floods hit). For Rabi 2023-24, the water availability was 30.6 MAF, showing an increase of 4.1% over Rabi 2022-23.

Domestic fertilizer production during FY24 (July-March) rose by 17.3% to 3.25 million tons compared to 2.77 million tons in the same period of FY23. Fertilizer imports also increased by 23.7%, reaching 524,000 ton­s. The availability of fertilizer increased by 18.1% to 3.77 million tons. 

Pakistan's Rice Exports Soared 80% in Current Fiscal Year. Source: FT

The value of Pakistan’s rice exports soared to $3.6 billion over the last 11 months, up from $2 billion in July to May 2022-23. Its previous record for was 4.8 million metric tons of rice exports, valued at about $2.5 billion in 2021-22, according to the Financial Times

Pakistan is among the world's largest food producing countries. It produces large and growing quantities of cereals, meat, milk, fruits and vegetables. Currently, Pakistan produces about 38 million tons of cereals (mainly wheat, rice and corn), 17 million tons of fruits and vegetables, 70 million tons of sugarcane, 60 million tons of milk and 4.5 million tons of meat.  Total value of the nation's agricultural output exceeds $70 billion.  Improving agriculture inputs and modernizing value chains can help the farm sector become much more productive to serve both domestic and export markets.  

Agriculture is considered a key tool for reducing poverty in developing countries like Pakistan. It employs almost half of the rural workforce, contributes around 20% to the country's GDP, and provides raw materials for agro-based industries, according to a study by Yaping Liu, Asad Amin, Samma Faiz Rasool, and Qamar Uz Zaman.  However, some studies suggest that agriculture may only help mitigate rural poverty in the long term, while other sources say that sustainable agriculture practices can significantly improve agricultural production and reduce poverty.

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