South Asia Investor Review

After decades of failed attempts, the Government of Pakistan has finally privatized the Pakistan International Airline (PIA) under intense pressure from the International Monetary Fund ( IMF ). Nonetheless, it is a deal that will give the national airline not only a chance to survive but to thrive in the long run. As part of structuring the sale for Rs. 135 billion, the government has assumed Rs. 654 billion in debt and pension obligations. The government gets only Rs. 10 billion in cash but it gives the new owners a clean balance sheet in return for a commitment to invest Rs. 125 billion of the Rs. 135 billion sale price in the carrier.  PIA Privatization Deal Structure. Source: Standard Capital Securities Pvt Ltd. Pakistani politicians have used state-owned enterprises like the PIA as a vehicle for doling out  political patronage . They have given jobs, including top jobs, to political cronies who have neither the experience nor the inclination to run these PSUs like busines...

Pakistan is moving to higher value-addition in textile sector with branding. Khaadi, Gul Ahmed, J. by Junaid Jamshed, Sapphire, Sana Safinaz and others growing into global brands by expanding into countries with large Pakistani diaspora. Other Pakistani companies that have gained international brand recognition include Shan Masala, Pakola, Tapal Tea and K&N Frozen Foods. These companies are helping boost much needed exports to narrow Pakistan's growing current account deficits .  Pakistani Global Brands. Source: Pakistan & Gulf Economist As the Pakistani diaspora has grown to nearly 10 million in recent years, several Pakistani clothing and food brands have entered markets in the United States, United Kingdom, European Union and the Middle East. These markets create opportunities to build more Pakistani global brands, create jobs and grow Pakistan's exports .  Khaadi Store, Package Mall, Lahore, Source: Wikimedia Khaadi , which specializes in women's apparel, has ...

Remittances from the European Union (EU) to Pakistan soared 49.7% in FY 21 and 28.3% in FY22, according to the State Bank of Pakistan. With $2.5 billion remittances in the first 9 months (July-March) of the current fiscal year, the EU ($2.5 billion) has now surpassed North America ($2.2 billion) to become the third largest source of inflows to Pakistan after the Middle East and the United Kingdom. Remittances from the US have grown 21%, second fastest after the EU (28.3%) in the first 9  months of the current fiscal year.  Country-wise Remittance Inflows in Pakistan. Source: State Bank of Pakistan Pakistanis in European Union:  The population of Pakistan-born migrants to European Union countries has been growing in recent years. With over 120,000 Pakistani migrants, Italy is the most popular destination for Pakistanis in the EU.  Italy is followed by Germany with 75,495 Pakistani migrants. Then comes Spain with 61,953 migrants, France 21,900 (2017), Sweden 11,674, De...

A recent Dawn newspaper article entitled " Getting Ahead in the West " by British journalist Owen Bennet Jones suggests that Pakistanis in the US and the UK are doing poorly relative to their Indian counterparts. It builds this narrative using the example of 3 ministers of Indian origin and just one junior minister of Pakistani origin in Prime Minister Boris Johnson's cabinet. It also cites the example of the choice of Kamala Harris, who is seen as African-American in the US political context, on the Democratic presidential ticket headed by former Vice President Joseph R. Biden. British Pakistanis:  While it is true that the current British government has three ministers of Indian origin, it is also true that British Pakistanis Sajid Javid and Sayeeda Warsi held senior cabinet posts in recent British governments headed by Prime Ministers Teresa May and David Cameron.  In addition to cabinet memberships, British Pakistanis have been elected as mayors of several cities, inc...

Remittance inflows from  Pakistani diaspora  have jumped 21-fold from about $1 billion in year 2000 to $21 billion in 2018, according to the World Bank. In terms of GDP, these inflows have soared nearly 7X from about 1% in year 2000 to 6.9% of GDP in 2018. Meanwhile,  Pakistan's exports  have declined from 13.5% of GDP in year 2000 to 8.24% of GDP in 2017.  At the same time, the country's  import bill  has increased from 14.69% in year 2000 to 17.55% of GDP in 2017.  This growing trade imbalance has forced Pakistan to seek IMF bailouts four times since the year 2000.  It is further complicated by external  debt service  cost of over $6 billion (about 2% of GDP) in 2017. Foreign investment in the country has declined from a peak of $5.59 billion (about 4% of GDP) in 2007 to a mere $2.82 billion (less than 1% of GDP) in 2017. While the current account imbalance situation is bad, it would be far worse if Pakistani diaspora did n...

Guest Post by Rashid Ahmad You should go back and visit. You would be surprised! Pakistan in your mind may be frozen in time, but real Pakistan has moved on. Everything has changed. Pakistani Capital Islamabad You will find both familiarity and alienness there. It would appear to you like a dream. Or perhaps like being on Star Trek Holodeck, where things are familiar but there are new actors on the deck, and you are bit of a stranger. First thing that would hit you would be the increase in population.  Too many people  every where, compared to the time you left Pakistan. Some areas that were farms and free spaces when you were there would now be occupied by  new housing developments . The physical appearances would have changed. There would not be any complete transformation to prosperity, but new buildings replacing the old ones, and  new motorways , would change the physical reality. You would find distances have shrunk. The places that seemed far ...

Nearly half a million people of Pakistani origin call America home. Pakistani-Americans' education and income levels are significantly higher than those of the general population of the United States. Among them are doctors, engineers, lawyers, accountants, journalists, politicians, business executives, professional sports team managers and owners, artists, actors, entrepreneurs, salespeople, policemen, soldiers, convenience store clerks and taxi, bus and truck drivers. United States is the 5th most popular destination for Pakistani-born international migrants and the 6th largest source of remittances to Pakistan. In addition to participating in local philanthropy and community activities, several Pakistani-American organizations help raise funds for schools, hospitals and other human welfare projects in Pakistan. Pakistani-American Population: Over 450,000 Pakistani immigrants and their children live in the United States as of 2013, according to a report compiled by  Migration...