Pakistan Is Getting Ahead Of India, Again

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Feb 27, 2017 @ 06:44 PM 492 views The Little Black Book of Billionaire Secrets
Pakistan Is Getting Ahead Of India, Again


Panos Mourdoukoutas , Contributor
I cover global markets, business and investment strategy

(Photo credit should read RIZWAN TABASSUM/AFP/Getty Images)

After getting ahead of India in equity market performance, Pakistan is getting ahead of India in another indicator: economic freedom ranking.

That’s according to the recent 2017 Index of Economic Freedom ranking, which places Pakistan in 141st position and India at 143th.

Published by the Heritage Foundation, the Economic Freedom report measures such things as trade freedom, business freedom, investment freedom, and the degree of property rights protection in 186 countries.

Pakistan’s lead over India in this ranking may not be big deal to most observers, as it is too narrow to be meaningful. Besides, both countries are ranking too close to the bottom.

Still, Pakistan’s ranking has been consistently outperforming India's in recent years.

Does it really matter to anyone?

Yes, to equity market investors. Gains in economic freedom ranking are usually associated with higher economic growth rates and higher equity markets. And the superior performance of Pakistan’s market over that of India’s might as well be a reflection of it.

Index/Fund: 12-month Performance

Global X Pakistan (PAK): 38.44%

iShares S&P India 50 (INDY): 1.03%

Source: Finance.yahoo.com 2/27/17

In fact, a closer look at the ranking components of the two countries reveals that Pakistan has fared better than India in the areas of business development and government spending, which matter a great deal for financial market performance

Country | Overall Ranking | Score | Property Rights | Business Freedom | Labor Freedom | Government Spending

Pakistan | 141 | 52.8 | 36.40 | 61.20 | 37.80 | 87.30

India | 143 | 52.6 | 55.40 | 52.80 | 41.60 | 77.40

Source: The Heritage Foundation

Here is a quote from the Pakistan report. “Pakistan has pursued reforms to improve its entrepreneurial environment and facilitate private-sector development. The financial sector has undergone modernization and restructuring.”

And a quote from the Indian report. “The state maintains an extensive presence in many areas through public sector enterprises. A restrictive and burdensome regulatory environment discourages the entrepreneurship that could provide broader private-sector growth.”

Simply put, while Pakistan is trying to place economic growth in the hands of entrepreneurs, India insists to place economic growth in the hands of government bureaucrats.

That’s certainly good news for the future of Pakistan’s economy and equity markets.

https://www.forbes.com/sites/panosm...is-getting-ahead-of-india-again/#4d6b1759dd9c

 

[Khan_21]

https://www.forbes.com/sites/panosm...is-getting-ahead-of-india-again/#22605fefdd9c

After getting ahead of India in equity market performance, Pakistan is getting ahead of India in another indicator: economic freedom ranking.

That’s according to the recent 2017 Index of Economic Freedom ranking, which places Pakistan in 141st position and India at 143th.

Published by the Heritage Foundation, the Economic Freedom report measures such things as trade freedom, business freedom, investment freedom, and the degree of property rights protection in 186 countries.

Pakistan’s lead over India in this ranking may not be big deal to most observers, as it is too narrow to be meaningful. Besides, both countries are ranking too close to the bottom.


Still, Pakistan’s ranking has been consistently outperforming India's in recent years.

Does it really matter to anyone?

Yes, to equity market investors. Gains in economic freedom ranking are usually associated with higher economic growth rates and higher equity markets. And the superior performance of Pakistan’s market over that of India’s might as well be a reflection of it.

Index/Fund

12-month Performance

Global X Pakistan (PAK)

38.44%

iShares S&P India 50 (INDY)

1.03%

Source: Finance.yahoo.com 2/27/17

In fact, a closer look at the ranking components of the two countries reveals that Pakistan has fared better than India in the areas of business development and government spending, which matter a great deal for financial market performance

Country

Overall Ranking

Score

Property Rights

Business Freedom

Labor Freedom

Government Spending

Pakistan

141

52.8

36.40

61.20

37.80

87.30

India

143

52.6

55.40

52.80

41.60

77.40

Source: The Heritage Foundation

Here is a quote from the Pakistan report. “Pakistan has pursued reforms to improve its entrepreneurial environment and facilitate private-sector development. The financial sector has undergone modernization and restructuring.”

And a quote from the Indian report. “The state maintains an extensive presence in many areas through public sector enterprises. A restrictive and burdensome regulatory environment discourages the entrepreneurship that could provide broader private-sector growth.”

Simply put, while Pakistan is trying to place economic growth in the hands of entrepreneurs, India insists to place economic growth in the hands of government bureaucrats.

That’s certainly good news for the future of Pakistan’s economy and equity markets.

 

[Adonis]

Have you tried comparing the same parameters with China! I guess, Pakistan would be outperforming them as well.

 

[Tolkien]

Fail.
Only reason India and China are behind Pakistan and Bangladesh and Nepal in this index is because unlike India and China government controlled Giant PSUs do not exist in other regional nations.

 

[Khan_21]

Fail.
Only reason India and China are behind Pakistan and Bangladesh and Nepal in this index is because unlike India and China government controlled Giant PSUs do not exist in other regional nations.

I think you didn't notice they compared economic freedom too .

''In fact, a closer look at the ranking components of the two countries reveals that Pakistan has fared better than India in the areas of business development and government spending, which matter a great deal for financial market performance ''

''Simply put, while Pakistan is trying to place economic growth in the hands of entrepreneurs, India insists to place economic growth in the hands of government bureaucrats.''

 

[Tolkien]

I think you didn't notice they compared economic freedom too .

''In fact, a closer look at the ranking components of the two countries reveals that Pakistan has fared better than India in the areas of business development and government spending, which matter a great deal for financial market performance ''

''Simply put, while Pakistan is trying to place economic growth in the hands of entrepreneurs, India insists to place economic growth in the hands of government bureaucrats.''

Only reason India ranked behind Pakistan in business development is because the index gives a negative score if a country has expanding government owned corporations.


The fact is Pakistan has always ranked higher in this index from the start because it lacks a large government corporate presence in Main industrial sectors.

 

[noksss]

 

[ABCharlie]

Well done!

 

[Radio Mirchi]

I am amazed at some Pakistanis' obsession to find out things that can showcase Pakistan as superior to India. I will not be surprised if next article says Pakistani national animal the Markhor is more ferocious and stronger than Indian national animal the Tiger.

 

[proud_indian]

I think you didn't notice they compared economic freedom too .

''In fact, a closer look at the ranking components of the two countries reveals that Pakistan has fared better than India in the areas of business development and government spending, which matter a great deal for financial market performance ''

''Simply put, while Pakistan is trying to place economic growth in the hands of entrepreneurs, India insists to place economic growth in the hands of government bureaucrats.''

watch what your country's economists have to say.

 

[ABCharlie]

I am amazed at some Pakistanis' obsession to find out things that can showcase Pakistan as superior to India. I will not be surprised if next article says Pakistani national animal the Markhor is more ferocious and stronger than Indian national animal the Tiger.

It's got nothing to do with India. The writer of the article compared Pak with India. Most of us are just happy that something positive is published about our country. It could have been compared to any comparable country, and it would have been as good.

 

[proud_indian]

It's got nothing to do with India. The writer of the article compared Pak with India. Most of us are just happy that something positive is published about our country. It could have been compared to any comparable country, and it would have been as good.

I suggest you to watch the video I posted above.

 

[Khan_21]

watch what your country's economists have to say.

I don't need to when I can read international authentic websites .

http://www.trtworld.com/opinion/whats-the-reality-behind-all-the-praise-for-pakistans-economy-306535

https://www.bloomberg.com/view/articles/2017-02-06/pakistan-s-economy-is-a-pleasant-surprise

I am amazed at some Pakistanis' obsession to find out things that can showcase Pakistan as superior to India. I will not be surprised if next article says Pakistani national animal the Markhor is more ferocious and stronger than Indian national animal the Tiger.

Really ? This was written by Forbes not Dawn .

 

[proud_indian]

I don't need to when I can read international authentic websites .

http://www.trtworld.com/opinion/whats-the-reality-behind-all-the-praise-for-pakistans-economy-306535

https://www.bloomberg.com/view/articles/2017-02-06/pakistan-s-economy-is-a-pleasant-surprise

They also have covered the reality of all those feel good articles and the commercial loans pakistan have been taking from china for past two months just to maintain it's foreign reserves.

 

[ABCharlie]

I suggest you to watch the video I posted above.

First of all, I did not reply to you.

Second, our media is quite free. Anyone can come and give their views, even highly critical. I know that is an alien concept in India where all mainstream media is given a script about how incredible India is, how it's going to overtake China in next 3 years, USA in next 6 years, and Mars in next 9.5 years, and how benificial cow piss is for your skin.