India's foreign exchange reserves surged by a whopping $3.602 billion in week to touch $405.638 billion driven by rise in foreign currency assets, the Reserve Bank said Friday. Forex Reserves had increased by $258.8 million to $402.035 billion in the previous week.
Western economies are pumping billions of dollars in India's Stock Market in a pre-election buying spree.
Pakistani PM Imran Khan on the other hand is globe trotting to garner financial support from its allies. Pakistan is desperate to secure any amount of Financial Aid to avoid default in debt payment. Imran Khan is unable to lift Pakistani exports and struggling to curb rising imports. Since 1980, exports from India and Bangladesh have grown at a rate that is more than five times that of the growth of Pakistan’s exports.
Pakistan's National Debt stands at around $100 billion, while its Foreign Exchange Reserves are a meager $8.8 billion.
Pakistan’s import / export balance of payment deficit as reported by the State Bank of Pakistan for July 2018-January 2019 is $23.78 billion and its current account deficit is $110.12 billion.
The total debt is now 76% of Pakistan's gross domestic product (GDP). This level is higher than the permissible limit, which should not exceed 60% of the GDP.
Modi's India continues to rise as the fastest growing major economy in the world and is also fast gaining the ability to acquire multiple multi-billion dollar sophisticated weapon system to only add to the overall list of problems of Pakistan. In a tit-for-tat, Pakistan tries to match as much as possible by acquiring cheap Chinese weapons, not realising that it is getting sucked into a debt-hole by trying to play catch-up with its Big Daddy.
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Article written by Darshil Patel
Bsc. in CASFX - UK
Location : MUMBAI