Forget India, profit from ‘quiet rise’ of Pakistan: Barron’s Asia

By APP
Published: February 9, 2017
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PHOTO:FILE

PHOTO:FILE

ISLAMABAD: Investors should forget India and instead profit from the ‘quiet rise’ of Pakistan along with Sri Lanka and Bangladesh, Barron’s Asia said.
In an article, America’s financial magazine advised investors where profit is to be had through stock investments.
It pitched Pakistan, Sri Lanka and Bangladesh as the places to be, saying the trio is enjoying fast-paced growth, embracing reforms and look set to enjoy a demographic dividend over the long term.
“Forget India. Investors looking for the next big thing should look to its South Asia neighbors instead – Pakistan, Bangladesh and Sri Lanka,” Barron’s Asia said.

Pakistan will be 16th largest economy by 2050: PwC report
According to the article, the three countries with a combined 390 million people represent what Morgan Stanley chief global strategist Ruchir Sharma calls “the quiet rise of South Asia” as opposed to India which has been “flattered by spasms of hype for years”.
“A substantially higher economic growth rate than in many other economies globally, coupled with fantastic demographics that will continue supporting growth for many years ahead,” East Capital fund manager Adrian Pop told Barron’s Asia.

Pakistan will become major destination for international companies: PM Nawaz
The article mentions that Pakistan is the flag-bearer of positive changes taking place in the South Asian nations.
Inflation is under control, the budget deficit has been reduced and, more importantly, terrorism finally appears to be on the back-foot, given more assertive action by the army.
This along with Chinese investment in the transportation and energy sectors will be crucial to higher growth.
“More power capacity is key for Pakistan to move to an even higher economic growth rate,” said Pop.  In December, the Pakistan Stock Exchange sold 40 percent stake to a consortium of Chinese investors.
The Karachi stock index is up by about 50 percent since the start of last year, propelled by index compiler MSCI’s decision to bump up the country to the emerging markets status.

Fitch affirms Pakistan at ‘B’; outlook deemed stable
Bangladesh benefits from a growing working age population and rising labor costs elsewhere in Asia. Garment manufacturing for western clothing companies has increasingly moved from China to places like Bangladesh, where wages are lower.

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Reader Comments (13)

  • Feroz
    Feb 9, 2017 - 9:30PM

    Preparing such reports is fine but the real task is to bring foreign portfolio investors to invest in the local market.Recommend

  • Lalit
    Feb 9, 2017 - 9:34PM

    Most Indians know that Pakistan’s economy is doing much better the last few years and it is true that the Indian people who are against Pakistan are upset. They worry about CPEC and Pakistan’s economy finally taking off. Bloomberg reporting was released this week which shows the upcoming strength of the Pakistani economy and it is the fastest growing economy in the Muslim world. India will continue to try to destabilise things in the border areas from Afghanistan but I think it’s better if India just learns to to work together with Pakistan. IRecommend

  • Truth
    Feb 9, 2017 - 10:20PM

    @Feroz: Don’t worry it will be done – Recommend

  • Oommen
    Feb 9, 2017 - 11:47PM

    Pakistani exports are going down for years. Garment industry may have moved to Bangladesh from China (low paying unskilled job)

    China is not going to shift manufacturing to Pakistan when its own growth rate are in all time low (in 25 yrs and with massive bank debts). should China’s loan should be considered as investment ?

    The fastest growth rate are in Philippines, Vietnam and India.Recommend

  • Iqbal
    Feb 10, 2017 - 2:42AM

    Foreign cricket teams refuse to come to Pakistan. How do you expect foreign investors to come to Pakistan? Cricket teams have to spend about two months and they refuse to come. Investors have to come on permanent basis. How does the logic work?Recommend

  • Sara
    Feb 10, 2017 - 3:43AM

    @Lalit:
    We need more positive Indians like you. Recommend

  • ghazal
    Feb 10, 2017 - 7:34AM

    Pakistan will give loans to USA , after 2021Recommend

  • Manu
    Feb 10, 2017 - 8:33AM

    These kind of articles only find mention in one country which lives in the world of denial and false creations.No wonder insecurity is in its DNA.Recommend

  • Naresh
    Feb 10, 2017 - 3:43PM

    @Lalit: Most Indians know that Pakistan’s economy is doing much better the last few years and it is true that the Indian people who are against Pakistan are upset. They worry about CPEC and Pakistan’s economy finally taking off. Bloomberg reporting was released this week which shows the upcoming strength of the Pakistani economy and it is the fastest growing economy in the Muslim world. India will continue to try to destabilise things in the border areas from Afghanistan but I think it’s better if India just learns to to work together with Pakistan.
    .
    Lalit Sir : The Indian CII, IIMs, IITs and Think Tanks along with various Indian Chambers of Commerce and Industries etc. etc. should visit Pakistan and take advice from their Pakistani Counterparts so that India can develop similarly and make good progress. Ignoring Pakistan will be India’s Peril.
    CheersRecommend

  • Annoyomous
    Feb 11, 2017 - 12:40AM

    As far as i know india lead in education & bussiness. But pakistan will down it with the start of CPEC all the neighbour countries in the region are joining hands with pakistan to become part of CPEC. With the start of CPEC as i see pakistan will become an Independent country & emerging economy. Now it will be not influence by super power as was in the past. Russia are trying to make partner in South Asia and at international level America influence is decreasing day by day. India will become isolated further now.
    What pakistan lack is Leadership. All the credit goes to army for the sucessfull launch of CPEC and taking all the work carried out under the supervision of them.
    At last pakistan is on the way of Progress.
    Pakistan Zinda Baad..Recommend

  • Rajan
    Feb 11, 2017 - 3:00PM

    I think all who read this article and condemns demonetization i am giving the link to a you-tube video of an economist named Anil bokil. Its an 52 min video you can forward it the real part where he starts to explain the demonetization. And if you understood something then please increase the awareness of your people. youtube link

    https://www.youtube.com/watch?v=JmeKtGO6eWoRecommend

  • goggi (Lahore)
    Feb 11, 2017 - 6:33PM

    I will be overjoyed when the ugly “Iron Curtain” between Pakistan and India vanishes, sooner than later!
    In this miraculous age of “knowledge revolution,” counterproductive negativity and enmity of any kind, is the least Pakistani and Indian establishments can hold on!
    We the people of Pakistan and India are same as well as our structures of thinking!Recommend

  • Lalit
    Feb 12, 2017 - 3:02PM

    @Lalit
    Hey buddy….don’t steal my monicker.Recommend

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