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Pakistan's Per Capita income Rises to $3135 Amid Slow Growth

The strength of the Indian rupee has everything to do with foreign capital inflows ..without these, the INR could collapse and there could be a balance of payments crisis. The real danger is the growing dependence on hot money that can leave India as fast as it coming in.

Money is just a means of making wealth mobile. Sometimes I wonder why you are trying to turn an issue on its head. Either you have no grasp of the monetary system or you just want to confuse some readers on PDF when you cannot convince.
 
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This figure reported by the IMF in March 2011 is for 2009-2010. The 2010-11 figure I am quoting came out on June 1, 2011 Economic Survey.

no , that figure is for 2011 only. It is there on wiki , and on wiki the source will take you to the IMF website .They have given 2011 figures and have predicted it for as far as 2016.

Report for Selected Countries and Subjects

check it out , it is directly from IMF .

What economic survey are you talking about ? Is it from IMF ? Or world bank ? If yes then post the link .
 
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no , that figure is for 2011 only. It is there on wiki , and on wiki the source will take you to the IMF website .They have given 2011 figures and have predicted it for as far as 2016.

Report for Selected Countries and Subjects

check it out , it is directly from IMF .

What economic survey are you talking about ? Is it from IMF ? Or world bank ? If yes then post the link .

I wonder how IMF could have known in March 2011 what the Economic Survey of Pakistan calculated on June 1, 2011, at the end of fiscal 2011?

I didn't know that IMF is so prescient!
 
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He is trying to say that IMF is wrong and Economic survey of Pakistan is the final authority. :lol:

Gosh ! that is what i was thinking but could not believe .:lol:

Pakistanis can look at economic survey of Pakistan for knowledge but the rest of the world will take the IMF seriously .
 
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Gosh ! that is what i was thinking but could not believe .:lol:

Pakistanis can look at economic survey of Pakistan for knowledge but the rest of the world will take the IMF seriously .

and to add to that, any new loans, refinancings, and developmental aid is also only made on IMF and world bank data... Not country data... And, i just don't understand, did the poster really wanted to 'infer' that IMF data was not reliable or less reliable than an internal (self conducted) economic survey of Pakistan???

And for a poster in the last page on FII investments and the fears of flight of FII capital... So far as I understand this subject, FII investments, that are considered non-trustworthy are essentially capital market investments... GDP, on the other hand is a function to determine the Domestic Production activity and thus that will have no relevance to our growth rate's security...
 
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He is trying to say that IMF is wrong and Economic survey of Pakistan is the final authority. :lol:

Yes survey of Pakistan is the final authority. IMF will revise and align its data with survey of Pakistan after few months, once the data was made final. IMF just predict thorough macro economic indicator and does not run any survey. So they have to rely on survey of Pakistan and is official.
 
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Here's a recent piece on FDI decline and FII upsurge in India:

In 2010-11, inbound FDI into India fell by as much as 28%, the second consecutive year of decline and the first such large decline since the opening up of the economy in 1991-92. As a result of this decline, the present level of $27 billion of FDI inflows is the lowest in four years.

A large part of the progress made in FDI inflows over the boom years has now been reversed, with flows down by almost 29% from their high in 2007-08. This trend, more than just being odd, is also worrying when seen in the context of the fact that the past four years cover the recessionary period as well.
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The decline in FDI in 2009-10 could be explained by the fact that it was a year when recessionary effects were visible in the global economy. All BRIC countries (Brazil, Russia, India and China) saw declines in FDI flows during that year.

According to the United Nations Conference on Trade & Development (Unctad), flows into China fell by over 12% and to Russia and Brazil by as much as 49% and 42% from the previous year.

However, a number of emerging markets have shown substantial recovery in 2010. The RBI pointed to Unctad figures to show that countries like China, Brazil, Mexico and Thailand had in 2010 shown a rebound in FDI of between 6-53 percent. Indonesia apparently showed a three-fold rise from the previous year.

In India itself, FII flows have been on the rise over the past two years on an annual basis, with only 2008-09 being a year of sharp outflows. In fact, the outflow of $15 billion was more than made up by inflows of $29 billion — their highest ever — in 2009-10. This level was largely maintained in 2010-11 as well, with a small increase.

Both these factors go on to show that the decline in FDI into India in 2010-11 is not the result of a weak global situation or investor risk-aversion. The causes really lie elsewhere.
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FDI flows showed a dismal performance in almost every month of the previous financial year, with May being the only exception. By the end of the third quarter, it became clear that FDI inflows would be nowhere close to what they were the year before.

The RBI highlighted this in its quarterly ‘Macroeconomic and Monetary Developments (MMD) study released in January 2011 and suggested some reasons for the trend as well.

According to the bank, the “major reason for the decline in inward FDI is reported to have been the environment-sensitive policies pursued, as manifested in the recent episodes in the mining sector, integrated township projects and construction of ports, which appear to have affected the investors’ sentiments.”

The Ministry of Environment had recently questioned the ecological viability of the Korean steel giant, Posco’s proposed plans in Orissa, which could be one of India’s biggest FDIs ever.

The MMD review further goes on to observe that there are other reasons for the decline as well, such as “persistent procedural delays, land acquisition issues and availability of quality infrastructure”.

Indeed, delays in decision-making are visible in sectors like defence and multi-brand retail, discussions on which have been long in the works. The Department of Industrial Policy and Promotion (DIPP) had floated a discussion paper on defence in May 2010 and on multi-brand retail in July 2010.

Feedback on these was received by parties interested in the sector, but a decision on allowing FDI into these sectors is still nowhere in sight.
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This is corroborated by the numbers. Both telecom and real estate have seen an above-average decline in FDI flows during the year. While flows into telecom declined by 35% to $1.6 billion, the flows to housing and real estate declined by as much as 60% to $1.1 billion...

Hot money is flowing, but rest of India story has gone cold | Firstpost
 
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Here's a recent piece on FDI decline and FII upsurge in India:

In 2010-11, inbound FDI into India fell by as much as 28%, the second consecutive year of decline and the first such large decline since the opening up of the economy in 1991-92. As a result of this decline, the present level of $27 billion of FDI inflows is the lowest in four years.

A large part of the progress made in FDI inflows over the boom years has now been reversed, with flows down by almost 29% from their high in 2007-08. This trend, more than just being odd, is also worrying when seen in the context of the fact that the past four years cover the recessionary period as well.
----
The decline in FDI in 2009-10 could be explained by the fact that it was a year when recessionary effects were visible in the global economy. All BRIC countries (Brazil, Russia, India and China) saw declines in FDI flows during that year.

According to the United Nations Conference on Trade & Development (Unctad), flows into China fell by over 12% and to Russia and Brazil by as much as 49% and 42% from the previous year.

However, a number of emerging markets have shown substantial recovery in 2010. The RBI pointed to Unctad figures to show that countries like China, Brazil, Mexico and Thailand had in 2010 shown a rebound in FDI of between 6-53 percent. Indonesia apparently showed a three-fold rise from the previous year.

In India itself, FII flows have been on the rise over the past two years on an annual basis, with only 2008-09 being a year of sharp outflows. In fact, the outflow of $15 billion was more than made up by inflows of $29 billion — their highest ever — in 2009-10. This level was largely maintained in 2010-11 as well, with a small increase.

Both these factors go on to show that the decline in FDI into India in 2010-11 is not the result of a weak global situation or investor risk-aversion. The causes really lie elsewhere.
-----------
FDI flows showed a dismal performance in almost every month of the previous financial year, with May being the only exception. By the end of the third quarter, it became clear that FDI inflows would be nowhere close to what they were the year before.

The RBI highlighted this in its quarterly ‘Macroeconomic and Monetary Developments (MMD) study released in January 2011 and suggested some reasons for the trend as well.

According to the bank, the “major reason for the decline in inward FDI is reported to have been the environment-sensitive policies pursued, as manifested in the recent episodes in the mining sector, integrated township projects and construction of ports, which appear to have affected the investors’ sentiments.”

The Ministry of Environment had recently questioned the ecological viability of the Korean steel giant, Posco’s proposed plans in Orissa, which could be one of India’s biggest FDIs ever.

The MMD review further goes on to observe that there are other reasons for the decline as well, such as “persistent procedural delays, land acquisition issues and availability of quality infrastructure”.

Indeed, delays in decision-making are visible in sectors like defence and multi-brand retail, discussions on which have been long in the works. The Department of Industrial Policy and Promotion (DIPP) had floated a discussion paper on defence in May 2010 and on multi-brand retail in July 2010.

Feedback on these was received by parties interested in the sector, but a decision on allowing FDI into these sectors is still nowhere in sight.
---
This is corroborated by the numbers. Both telecom and real estate have seen an above-average decline in FDI flows during the year. While flows into telecom declined by 35% to $1.6 billion, the flows to housing and real estate declined by as much as 60% to $1.1 billion...

Hot money is flowing, but rest of India story has gone cold | Firstpost

Okay. Still India grew by 8.5%. Would you contest that? If not whats with the article?
 
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Pakistan’s nominal per capita income rose 16.9 percent to $1,254 in 2010-11 from $1,073 in 2009-2010, according to the Economic Survey of Pakistan. Using the IMF's purchasing power parity exchange rate of Rs. 34 to a US dollar (versus official exchange rate of Rs. 85 to a US dollar), Pakistan's per capita income in terms of purchasing power parity works out to $3,135.00.

Although Pakistan's per capita GDP rose by only 0.7% in real terms, the much higher 16.9% nominal per capita income increase reflects a combination of the nation's double-digit inflation rate and the the rupee's stable exchange rate with the US dollar which has been losing ground to most major world currencies in 2010-2011.

The idea of PPP or purchasing power parity is quite simple. A US dollar can be exchanged today for about 85 Pakistani rupees. But with Rs 85 you can buy more goods and services in Pakistan than one US dollar can buy in the United States. So Pakistan's GDP expressed in dollars at current exchange rates is about 40% of what it is when adjusted for PPP. The current ratio for both Indian and Pakistani GDP conversion from nominal US dollars to PPP dollars is about 2.5, calculated as follows:

Country......Official Rate....Purchasing Power.....Ratio

India...........INR 45.................INR 18..........2.5

Pakistan.......PKR 85................PKR 34..........2.5



Looking at the increase in per capita income alone is quite misleading in judging the health of Pakistan's economy. Other indicators, such as real GDP growth and investments, show that the state of the economy is very poor. The nation's GDP grew only 2.4% in real terms in 2010-2011. Domestic investment dropped to a 40-year low of 13.4% of GDP, and foreign direct investment (FDI) declined by 29 percent to $1.232 billion during July-April 2010-11 from $1.725 million in the same period a year earlier.

In addition to improved security environment, Pakistan has an urgent need for serious economic reform, greater social justice and better governance. Unless the PPP government acts to improve this situation, no amount of foreign aid, external loans and other help will suffice. The first step in the process is for the ruling elite to lead by example by paying their fair share of taxes and adopting less extravagant personal lifestyles to get Pakistan's fiscal house in order.

Haq's Musings: Pakistan's Per Capita Income Exceeds $3,100 in 2011

All i can say is hahahahahahaaaa ... What a load of crap, as long as receiving end is ignorant every voodoo economics is real economics.
 
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The strength of the Indian rupee has everything to do with foreign capital inflows ..without these, the INR could collapse and there could be a balance of payments crisis. The real danger is the growing dependence on hot money that can leave India as fast as it coming in.

Your logic is absurd, because, money coming in is not lying around in a bank account, It is put into work, invested, stuff built, goods produced. you wouldn't be talking like this if you know the multiplicity effect of money. Why do you keep harping about FDI, when we are talking about GDP and GDP per capita. The $23.7 billion FDI you are talking about is only about 1.5% of the $1.53 trillion GDP, so there little effect even if you make the entire FDI zero. Indian economy is not FDI dependent anymore, its true, we got our first few years of growth as a result of outsourcing, but now our economic growth is mostly domestic consumption driven by an expanding middle class.
 
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