Guest view: A debt relief plan for green recovery 28 Jun 2021 Bond markets are buoyant but poorer economies’ fiscal problems are unresolved. Economists Shamshad Akhtar and Ulrich Volz suggest a way of offering more comprehensive debt relief while promoting an environmentally-friendly and inclusive rebound in economic activity.
Virus offers Pakistan grim bargaining opportunity 5 May 2020 Debt payments suck up the largest chunk of its budget. Islamabad’s $8 bln crisis support package is measly, yet will push the fiscal deficit to 10% of GDP. Pakistan needs more than repayment deferral from creditors, especially China. And it’s better positioned to ask than most.
Belt and Road repairs fix only some potholes 25 Apr 2019 Beijing's gathering this week to promote its $1 trln-plus foreign policy push comes after a year of unprecedented troubles, from Pakistan to Malaysia. Under pressure, China has shown some welcome flexibility. But U.S. hostility is ramping up too; that’s far harder to pave over.
Investors give India-Pakistan peace a chance 28 Feb 2019 A rare air skirmish between the two nuclear-armed nations has left an Indian pilot captive. Relations have been worse in the past and war averted. Modest movements in stocks and bond yields suggest limited, if any, escalation is expected. Indeed, both sides have too much to lose.
Kashmir attack exposes the limits of India’s clout 20 Feb 2019 New Delhi has vowed to secure the “complete isolation” of Pakistan after one of the deadliest assaults in years. Yet Islamabad’s strategic value to Beijing and Riyadh makes that unrealistic, leaving Premier Narendra Modi with few options to show strength ahead of an election.
Viewsroom: Tesla’s wild and crazy ride 9 Aug 2018 CEO Elon Musk’s tweet about wanting to take the company private is causing a stir. Unorthodoxy aside, its volatile boss and weak corporate governance means Tesla is better off the public roads. Plus, Pakistan’s likely new leader Imran Khan will have to go hat in hand to the IMF.
Pakistan shows limits of China’s opaque largesse 3 Aug 2018 A mooted IMF bailout of the South Asian nation has raised new questions about its Chinese debts. The secret nature of Beijing’s support is a big part of the problem. To be sustainable, the country’s “Belt and Road” plan requires more clarity about its terms and conditions.
Foxconn’s U.S. move sends false reshoring signal 27 Jul 2017 The Taiwanese tech giant will build a $10 bln display plant in Wisconsin. That is a symbolic victory for the president and other Americans who want to lure factory jobs from China. But for commercial and political reasons, a mass reverse-migration remains unlikely.
Pakistan deserves more investor love 30 May 2016 The country could return to the influential MSCI emerging market index. Pakistan’s stock market is the best performing in Asia this year and is still cheap. The economy is also not in bad shape. For investors who can stomach the political risks, Pakistan looks enticing.
China’s road to West is paved with bold intention 20 Apr 2015 President Xi Jinping is expected to sign off on a $46 billion corridor between Western China and Pakistan. The transport link may end up as a security nightmare. But the lure of bringing Europe closer and countering India’s clout in South Asia makes it a tempting idea.
Review: The rise and fall of an Asian tycoon 19 Jul 2013 Mohsin Hamid understands corruption: his fictional portrait of a crooked yet oddly sympathetic tycoon shows how shady dealings can make or break a career. Hamid doesn’t condone skullduggery, but this detailed profile is an instructive guide to a darker side of rising Asia.
Polls give strife-hit Pakistan a shot at stability 10 May 2013 Investors will discount the pre-election rhetoric: no party explains how a broke government can spend more on welfare and infrastructure. Still, by empowering elected leaders, the May 11 election may offer a ray of hope to a nation battling Taliban and sectarian violence.
Pakistani economy is much stronger than the state 3 Sep 2012 It’s all too easy to write off Pakistan: scary security situation, the government and the judiciary at each other’s throats and U.S. drones pounding tribal areas. But the economy is not a wasteland. Consumption is strong and a saner energy policy can revive investments.
India-Pakistan trade deal just a first step 18 Oct 2011 Likely trade liberalisation between the two traditionally hostile nations has been rightly called historic. It’s part of India’s attempt at more economic engagement with its neighbours. The whole region will benefit, but current trade is so meagre that progress will take years.