India Pakistan Comparison 2010

[RiazHaq]

Thank you for replying on my behalf.

The problem with our interlocutors is that they will see Individual Items – like trade Imbalance – and are not prepared to see the “Phinal Phigure” i.e. the OVERALL BALANCE.

Also they fail to understand that India MOST DEFINITELY HAS A BUDGET DEFICIT.

However, what matters – in the end – is that India does not go begging to all and sundry for more and more Aid on one pretext or the other.

One should also note that India has, as on 31-12-2009 - a Foreign Debt of USD 221.1 Billion while it had a Foreign Exchange Reserves of USD 283.5 Billion. All these Reserves are held by the Reserve Bank of India and does not take into account the Foreign Exchange held by Commercial Banks in India.

In Comparison on the same date Pakistan had an External Debt of USD 55.675 Billion whereas the Foreign Exchange Reserves were USD 12.005 Billion. All these Foreign Exchange Reserves are held by the State Bank of Pakistan.

However the Figure Bandied about is USD 15.0699 which figure also includes USD 3.7870 Billion being held by “Private Investors” in Commercial Banks. People will remember that Nawaz Sharrif "Took Over" the Foreign Exchange Accounts of Private Individuals who held "Foreign Exchange Accounts" in Pakistan therby causing endless misery to the Good and Honest People of Pakistan.

Thus in real terms, on 31.12.2009, the Net Pakistani Foreign Debt is USD 55.675 Billion less USD 12.005 Billion which equates to USD 43.670 Billion and India’s has a Net Foreign Exchange Reserves of USD 62.4 Billion. This is the reason for the Indian Rupee being about 85% Stronger than the Pakistani Rupee.

There ends the lesson!

Like Pakistan, India continues to run large twin deficits. If it wasn't for the Indian and Pakistani diaspora sending home $55 billion and $10 billion a year respectively, both countries would be in deeper trouble. The biggest single export of South Asian nations are their people employed abroad.

Overseas remittances offer a lifeline to the poor in both nations.

For example Kerala, one of more advanced states of India lives off remittances and it lacks a manufacturing base. Economists draw parallels with the Philippines and Sri Lanka, which face similar problems.

Similarly, what is sustaining Pakistan are remittances which far exceed IMF loans and all of the "aid" put together.

BBC News - Conundrum of Kerala's struggling economy

Haq's Musings: Remittances Offer Lifeline to Pakistanis

 

[ramu]

For example Kerala, one of more advanced states of India lives off remittances and it lacks a manufacturing base. Economists draw parallels with the Philippines and Sri Lanka, which face similar problems.

Kerala is a great state with excellent HR. However, the people of Kerala behave differently when in Kerala and when outside. They are the best entrepreneurs in the world when it comes to retail but are also the strongest supporters of unions and the left. This has unfortunately had a counter effect of industries fearing to open shop in Kerala purely because of the labour situation.

Comparing Kerala with Philippines and Sri Lanka shows a complete lack of understanding of Kerala.

 

[asq]

BTW , who is that guy?

Infact senator Mcain said pakistan is failed state. Do you want the youtube video link for it?

YouTube- McCain Calling Pakistan a "Failed State"

comparing an intalectual to a political leaders is like comparing a finest car to a rusted bucket of bolts.

why Indians are so bent on twisting the truth and willing to embaress themselves by continueing on the path leading no where but to dead end.

 

[TechLahore]

However, what matters – in the end – is that India does not go begging to all and sundry for more and more Aid on one pretext or the other.

If Aid = Begging then India is a far bigger beggar than Pakistan and a more practiced one. Are you wanting to start a flame war or does it just come naturally?

 

[TechLahore]

I believe KSE has different companies. It has only one high tech company.

Now coming to the topic. Market cap to gdp discussion.

Give me 5 points how they are related and why they are overvalued for developing country like india. Don't quote persons words. like X said something.

Crap. Go do proper research.

I already told you in a previous post that Wateen just IPOd, TRG is already listed, DESCON, with around 1,000 software developers, is also listed as a Dawood group company.

One just has to ignore you, I suppose.

 

[TechLahore]

The budget deficit of Pakistan is under control at this time only because of the bad state of economy which led to the IMF bailout and in turn, IMF linking payment of the bailout tranches to a implementaion of prudent fiscal policies. As a matter of fact, the budget deficit for Pakistan has been much better in last 2 years than a number of years preceeitng them..

Your point being?

And I don't completely agree with you in your insinuation that it was the IMF alone that pushed for fiscal discipline. Mr. Shaukat Tarin, separate and apart from the IMF's input and before the IMF agreed to any program with Pakistan, was already a big proponent of curtailed spending and fiscal discipline. If the IMF happens to support a good decision, it does not make the good decision bad.

 

[ramu]

If Aid = Begging then India is a far bigger beggar than Pakistan and a more practiced one. Are you wanting to start a flame war or does it just come naturally?

1. Aid and Loan is different. Aid and soft loans are different. Loan and soft loans are different only in the nature of rate of interest.
2. India was in bad shape and so was Pakistan during the initial period of Independence. Aid = begging was a state that we were left with as the rule before Indian independence was colonial in nature that was sapping our wealth.
3. Any comparison with India and Pakistan should be done with due consideration to the size of India to the aid it received. i.e., aid per unit area and aid compared to GDP of the country.
4. India has a distinction of having a squeky clean record in terms of repayment of debt for soft loans from international bodies. About aid that is given by countries to increase their influence in India by funding NGO's is outside the purview of the Government of India and same is the case with Pakistan.
5. Direct aid for development between India and Pakistan today or in the recent past shows the de hyphenation of India from Pakistan.

 

[Hutchroy]

If Aid = Begging then India is a far bigger beggar than Pakistan and a more practiced one. Are you wanting to start a flame war or does it just come naturally?

Well, ramu has already answered.

I see that you have brought in Pakistan into the equation.

That is your privilege.

I rest my case.

 

[TechLahore]

Well, ramu has already answered.

I see that you have brought in Pakistan into the equation.

That is your privilege.

I rest my case.

You were the one who brought Pakistan into the equation. I just pointed out that India has asked for more money than Pakistan has. If you want to call it begging then that just reflects on your thought processes... to each his own.

 

[TechLahore]

1. Aid and Loan is different. Aid and soft loans are different. Loan and soft loans are different only in the nature of rate of interest.
2. India was in bad shape and so was Pakistan during the initial period of Independence. Aid = begging was a state that we were left with as the rule before Indian independence was colonial in nature that was sapping our wealth.
3. Any comparison with India and Pakistan should be done with due consideration to the size of India to the aid it received. i.e., aid per unit area and aid compared to GDP of the country.
4. India has a distinction of having a squeky clean record in terms of repayment of debt for soft loans from international bodies. About aid that is given by countries to increase their influence in India by funding NGO's is outside the purview of the Government of India and same is the case with Pakistan.
5. Direct aid for development between India and Pakistan today or in the recent past shows the de hyphenation of India from Pakistan.

I think you are missing the point.

The point is that there is no need to use words like "beggar". When people indulge in adjectives like these, it becomes an invitation for others to continue and amplify the trend. And then we end up with a flame war. I took exception to the use of a derogatory term when the same point could have been made without its use.

 

[karan.1970]

Your point being?

And I don't completely agree with you in your insinuation that it was the IMF alone that pushed for fiscal discipline. Mr. Shaukat Tarin, separate and apart from the IMF's input and before the IMF agreed to any program with Pakistan, was already a big proponent of curtailed spending and fiscal discipline. If the IMF happens to support a good decision, it does not make the good decision bad.

The point being that your insinuation that even in a weakend state, Pakistan's budget deficit is better than India's and so in a more healthy state, Pakistan's fiscal position would be even better, in my view is flawed.. Pakistan's budget deficit is low because IMF has a lot of say in the revenue generating policies and spends of GoP. The same is visible in a lot of recent and unpopular decisiions of GoP.

Also 1 year prior to the IMF bailout ( and its intervention in Pakistan's fiscal policies), Pakistan's fiscal deficit 2007-2008stood at a whooping 7.3 % of GDP as against India's 3.17% in the same year...

I am happy to replace only by majorly in my post to factor in Mr Tarin. However, in case of Pakistan, its not that IMF is supporting the decisions of Mr Tarin. At this time, the decisions are really being made or to put it mildly, being guided by IMF...

 

[TechLahore]

The point being that your insinuation that even in a weakend state, Pakistan's budget deficit is better than India's and so in a more healthy state, Pakistan's fiscal position would be even better, in my view is flawed.. Pakistan's budget deficit is low

The numbers are what they are. If you think by focusing on the reasons you ascribe to the numbers you can feel better about them, then please go ahead. The fact remains that Pakistan's budget is more balanced than India's at this point in time. That is a conclusion that requires nothing more than a basic application of arithmetic.

 

[deckingraj]

Guys since we are talking about Loans, Aids and what not i found this interesting news..Not sure how true it is but no doubt about being I interesting!!!

I am sure this news must have been discussed in length however since i was stumped thought nothing wrong in making a few more like me

New Delhi
Pakistan is yet to clear a pre-partition debt of Rs 300 crore to India, which has been carrying forward year after year in its Budget account as a "liability".

The Budget books refer to this Rs 300 crore as "amount due from Pakistan on account of share of pre-partition debt."

The amount was entered as a liability in the first Budget of independent India in 1950-51 and has been there ever since. But this a measly amount compared to the union government's total liabilities that total Rs 34,95,452 crore and accounts for just 0.008 per cent of the total liabilities.

However, in 1950-51 this amount accounted for more than 10 per cent of India's total liabilities of Rs 2,865.40 crore and nearly 10 times of India's total external debt of Rs 32 crore.

Surprisingly, New Delhi has not added interest to this amount since its entry in the books. However, India has cleared its share of the pre-partition debt of Rs 50 crore soon after independence in 1947.

Past receipts: Pakistan still owes India Rs 300 crore - Express India

 

[TechLahore]

Guys since we are talking about Loans, Aids and what not i found this interesting news..Not sure how true it is but no doubt about being I interesting!!!

I am sure this news must have been discussed in length however since i was stumped thought nothing wrong in making a few more like me

Here come the trolls!

That amount, if it is due from Pakistan to India, can be deducted from the much larger amounts due to Pakistan on account of the equipment and resources never handed over to the newly independent state on account of Indian theft of the same. So please deduct this small amount and hand us the rest.

Thank you very much.

 

[deckingraj]

The numbers are what they are. If you think by focusing on the reasons you ascribe to the numbers you can feel better about them, then please go ahead. The fact remains that Pakistan's budget is more balanced than India's at this point in time. That is a conclusion that requires nothing more than a basic application of arithmetic.

I am sorry but i disagree...One has to find out the reason behind the numbers otherwise there is a huge risk of misleading and getting mislead.... Just a simple example

If i borrow money from Person X and meet my monthly expenditure better than Person Y then that does not make me better than Person Y even though looking at numbers i look better...

I am sure you would agree that Fixing fiscal deficit is not peace of cake and that too at the time of recession...As karan mentioned that Pakistan fiscal deficit was a whopping 7.3% of GDP prior to IMF bailout simply states the sorry state of Fiscal Deficit in Pakistan...No doubt they have to work far more than Indian counterparts to keep the Genie in the bottle...