South Asia Investor Review

Pakistani diaspora  sent home $19.3 billion in remittances in 2015, representing 12.8 % increase over 2014, according to a World Bank Report titled " Migration and Development Brief " released today. Pakistan's $19.3 billion in remittance make up 6.9% of 2014 GDP, essentially closing the rising trade deficit amid the nation's falling exports. The 12.8% increase over 2015 is substantial but it is down from 16.7% jump seen in 2014 over 2013. The report attributes the slower remittance growth from Gulf Cooperation Council (GCC) countries like Saudi Arabia and United Arab Emirates to falling oil prices. This report comes soon after the  Panama Leaks  that show how  Pakistan's corrupt elite , including Prime Minister Nawaz Sharif's family, are moving and hiding in offshore tax havens the hard-earned dollars sent home by overseas Pakistanis to keep Pakistan's economy afloat. Overseas Remittances in South Asia Source: World Bank   In Q4 of 2015, ye...

As South Asians, Americans and the rest of the world suffer the impact of doubling of the food and fuel prices in about a year, there is a strong desire around the world to understand and address the underlying causes driving this phenomenon. While conspiracy theories abound, the more serious reasons being explored include imbalances between supply and demand and market speculation by large financial players. Meanwhile, the people continue to suffer in countries such as Pakistan and India where the poor spend as much as 66% of their income on food and fuel. Increasing demand from the fast growing economies of the BRIC countries is usually acknowledged as a factor. Simultaneously, supply jitters have been caused by "peak" oil theories bandied about Saudi Arabia and crop failures in traditional breadbaskets of the world. In addition, the US and Japan have become the largest hoarders of oil. The Strategic US Petroleum Reserve (SPR) is an emergency petroleum store maintained by t...

The bears reigned supreme as Karachi Stock Exchange (KSE)100-Index plunged by 226.33 points to close at 12,908.23, a loss of 1.75% on Monday. Other Asian countries also saw their stocks slump, India's Sensex lost 3.3%, Japan's main Nikkei 225 index slid 2.1% and Taiwan's Taiex shed 1.8%. While the Asian and international stocks have been in decline since the beginning of the year, the latest round of losses was triggered by an $11 a barrel spike in oil prices with renewed inflation fears. On Monday, oil prices slid slightly, though this did little to ease concerns in Asia. The US markets, however, have opened higher on Monday morning. Central banks across the globe have warned that interest rates may have to rise as they look to keep inflation under control, despite the fact that economic growth is slowing in key areas such as the US and EU. Pakistan's State Bank has recently raised interest rates from 10% to 12.5% and cut 2007-8 growth from 7.2% to 5.8%. This forecast ...