tag:blogger.com,1999:blog-5848640164815342479.post8159411903433306671..comments2024-03-27T15:36:44.737-07:00Comments on Haq's Musings: World Bank: Pakistan Outperforming Emerging Economies AverageRiaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5848640164815342479.post-75457322015828872102018-01-14T08:11:14.845-08:002018-01-14T08:11:14.845-08:00Pakistan is ranked third, with growth expected to ...Pakistan is ranked third, with growth expected to reach 5.3% in 2017 and 5.6% in 2018, partly as a result of ongoing investment in the China-Pakistan Economic Corridor.<br /><br />https://www.forbes.com/sites/dominicdudley/2017/10/11/fastest-slowest-economies-middle-east/#3d99961a3d37<br /><br />https://www.facebook.com/photo.php?fbid=10160135258970227&set=a.10152025168310227.892634.785640226&type=3&theaterRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-14587946149542326712018-01-12T18:29:38.943-08:002018-01-12T18:29:38.943-08:00We had the worlds largest GDP under Mughals.. We c...We had the worlds largest GDP under Mughals.. We can regain our lost glory if we believe in it..Z Basha Jrnoreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-31361205699850411532018-01-12T17:04:26.093-08:002018-01-12T17:04:26.093-08:00Hold your elephants. The Indian middle class conju...Hold your elephants. The Indian middle class conjured up by the marketers and consultants scarcely exists. Firms peddling anything much beyond soap, matches and phone-credit are targeting a minuscule slice of the population (see article). The top 1% of Indian adults, a rich enclave of 8m inhabitants making at least $20,000 a year, equates to roughly Hong Kong in terms of population and average income. The next 9% is akin to central Europe, in the middle of the global wealth pack. The next 40% of India’s population neatly mirrors its combined South Asian poor neighbours, Bangladesh and Pakistan. The remaining half-billion or so are on a par with the most destitute bits of Africa. To be sure, global companies take the markets of central Europe seriously. Plenty of fortunes have been made there. But they are no China.<br /><br />https://www.economist.com/news/leaders/21734454-should-worry-both-government-and-companies-india-has-hole-where-its-middle-class-should-be<br /><br />Centre parting<br /><br />Worse, the chances of India developing a middle class to match the Middle Kingdom’s are being throttled by growing inequality. The top 1% of earners pocketed nearly a third of all the extra income generated by economic growth between 1980 and 2014, according to new research from economists including Thomas Piketty. The well-off are ten times richer now than in 1980; those at the median have not even doubled their income. India has done a good job at getting those earning below $2 a day (at purchasing-power parity) to $3, but it has not matched other countries’ records in getting those on $3 a day to earning $5, those at $5 a day to $10, and so on. Middle earners in countries at India’s stage of development usually take more of the gains from growth. Eight in ten Indians cite inequality as a big problem, on a par with corruption.<br /><br />The reasons for this failure are not mysterious. Decades of statist intervention meant that when a measure of liberalisation came in the early 1990s, only a few were able to benefit. The workforce is woefully unproductive—no surprise given the abysmal state of India’s education system, which churns out millions of adults equipped only for menial work. Its graduates go on to toil in small or micro-enterprises, operating informally; these “employ” 93% of all Indians. The great swell of middle-class jobs that China created as it became the workshop to the world is not to be found in India, because turning small businesses into productive large ones is made nigh-on impossible by bureaucracy. The fact that barely a quarter of women work—a share that has seen a precipitous decline in the past decade—only makes matters worse.<br /><br />Good policy can do an enormous amount to improve prospects. However, hope should be tempered by realism. India is blessed with a deeply entrenched democratic system, but that is no shield against poor decisions. The sudden and brutal “demonetisation” of the economy in 2016 was meant to target fat cats, but ended up hurting everybody. And the path to prosperity walked by China, where manufacturing produced the jobs that pushed up incomes, is narrowing as automation limits opportunities for factory work.<br /><br />All of which means that companies need to deal with the India that exists today rather than the one they wish to emerge. A strategy of waiting for Indians to develop a taste for products that the global middle class indulges in—cars as income per head crosses one threshold, foreign holidays when it crosses the next—may lead to decades of frustration. Only 3% of Indians have ever been on an aeroplane; only one in 45 owns a car or lorry. If nearly 300m Indians count as “middle class”, as HSBC has proclaimed, some of them make around $3 a day.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-7679624677998236292018-01-11T21:02:58.744-08:002018-01-11T21:02:58.744-08:00International Monetary Fund’s mission to Pakistan ...International Monetary Fund’s mission to Pakistan on Thursday said that the country’s economy is expected to grow by 5.6 percent.<br /><br />Led by Herald Dinger, the IMF mission to Pakistan said it welcomes the State Bank’s move to allow the currency exchange rate to adjust to market conditions, adding that a “continued exchange rate of flexibility in the period ahead will be important”.<br /><br />The mission stressed that an adjustment would be beneficial for Pakistan’s exports and economic growth.<br /><br />As part of its post-program monitoring, an IMF delegation is on a visit to Pakistan to meet Pakistani officials. It has already concluded its first round of discussions on the country’s economy last week and was expected to conclude its policy-level talks by the end of this week.<br /><br />https://dailytimes.com.pk/159397/pakistans-economy-expected-grow-5-6-imf/Anonymousnoreply@blogger.com