Asia

To lower its debt burden, Pakistan is scheduled to return $1 billion against Eurobonds.
7Apr mmBy Joe RodriguezNo Comments
Asia

To lower its debt burden, Pakistan is scheduled to return $1 billion against Eurobonds.

Pakistan is set to repay a foreign debt worth $ 1 billion against a 10-year Eurobond maturing in the middle of this month which will reduce the stock of the debt acquired through the selling of bonds in international markets to below $ 7 billion. The State Bank of Pakistan (SBP) told The Express Tribune that it was ready to repay the bond anytime and was waiting to receive instructions to do so from the finance ministry. The move will reduce the stock of the debt acquired through selling Eurobonds and Sukuks (bond-like instruments used in Islamic finance) in international markets to below $ 7 billion. This has enhanced the country's capacity to repay all the upcoming maturing foreign debt on time. Following the repayment of $ 1 billion in April, Pakistan's foreign exchange res...
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Reforms in the financial sector and fiscal policy would enable Bangladesh to maintain rapid growth.
2Apr mmBy Mike TrudellNo Comments
Asia

Reforms in the financial sector and fiscal policy would enable Bangladesh to maintain rapid growth.

Bangladesh's economy made a strong turnaround from the COVID-19 pandemic, but the post-pandemic recovery continues to be disrupted by high inflation, a persistent balance of payments deficit, financial sector vulnerabilities, and global economic uncertainty, says the World Bank in its twice-yearly-update. Released today, the latest Bangladesh Development Update says that urgent monetary reform and a single exchange rate regime will be critical to improve foreign exchange reserves and ease inflation. Greater exchange rate flexibility would help restore balance between demand and supply in the foreign exchange market. Structural reforms will be key to diversify the economy and build resilience over the medium and long term, including measures to raise government revenues to support inves...
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29Mar mmBy Mike TrudellNo Comments
Asia, World

Why the US Economy Is Booming While China’s Is Collapsing

“Every so often, a grand thesis captures the world’s imagination,” began an article in the The New Yorker in 2008. “The latest … is that America’s time of global dominance is finished, and that new powers, such as China, India, and Russia, are poised to take over.” There has been no shortage of optimism about China since, like a 2011 Foreign Affairs headlined the “The Inevitable Superpower” and a 2018 piece from The Economist that “The Chinese century is well under way.” What a difference the past few years have made. Conventional wisdom that China’s economy would eclipse the U.S. in a decade—maybe even sooner—is looking uncertain. The view that China was the emerging geopolitical power, with developing nations tucked under its wings, is looking similarly shaky. It is now unclear wheth...
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In Asia, Where Digital Banks Can Make An Impact
29Mar mmBy Joe RodriguezNo Comments
Asia, World

In Asia, Where Digital Banks Can Make An Impact

Digital banks have sprung up across Asia in recent years. In many cases, they are having little impact on the overall banking market. Affluent societies like Singapore, Hong Kong, Japan and Taiwan are not lacking banking options. Even middle-income countries like Malaysia and Thailand have limited financial inclusion needs. Yet in certain countries that are less affluent, and where the financial system is still underdeveloped, digital banks can play an important role in boosting financial inclusion. This is the case in several Southeast Asian and South Asian countries. The Biggest Southeast Asian MarketIn a population of more than 275 million, Indonesia is estimated to have well over 100 million people who are unbanked or underbanked. Further, the unique island geography of the coun...
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China’s economy is undergoing a great transition rather than a great decline.
27Mar mmBy Michael SmithNo Comments
Asia, World

China’s economy is undergoing a great transition rather than a great decline.

China's near-term challenges and long-term uncertainties are plentiful, but the widespread pessimism towards the Chinese economy and markets feels excessive. We think the country's in a necessary transition rather than in any long-term decline. Understanding the challenges and timescale is key for investors China's economy has reached an important crossroadsChina's economy has reached an important crossroads after undergoing one of the most impressive growth miracles of modern history. In rapidly moving financial markets, participants are understandably focused on short-term trends and developments. But it's crucial to sometimes take a step back and look at a longer time horizon when it comes to formulating a big-picture strategy, not least in terms of asset allocation. The short-te...
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26Mar mmBy Michael SmithNo Comments
Asia, World

Is Pakistan in Danger? The condition of the country’s economy, democracy, and ties to the US

In this episode of Need to Know, we focus on Pakistan's political and economic situation, as well as its relationship with the United States. Michael Kugelman, Deputy Director of the Wilson Center's IndoPacific program, covers topics such as the health of democracy in the wake of the recent election, the country's ongoing economic crisis, and the value of US support for democracy and human rights. Kugelman highlights the challenges and complexities facing Pakistan and provides insights into the current state of affairs. Pakistan's democracy is facing challenges, with increasing crackdowns on the opposition and concerns about electoral irregularities.The country is dealing with a severe economic crisis and is seeking a loan from the IMF to stabilize its economy.US support for democracy ...
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Pakistan wants an extended IMF bailout to repair its damaged economy.
25Mar mmBy Michael SmithNo Comments
Asia, World

Pakistan wants an extended IMF bailout to repair its damaged economy.

Prime Minister Shehbaz Sharif's coalition government has its work cut out as economic turmoil forces it to tackle deep-rooted structural problems. Pakistan has long been in a state of grave economic turmoil. Political instability, corruption, mismanagement, the COVID-19 pandemic, a global energy crisis and climate change-induced natural disasters have all taken a heavy toll on the economy. Prime Minister Shehbaz Sharif's newly-formed government is currently seeking another bailout from the International Monetary Fund (IMF) to tackle the country's acute balance-of-payments crisis. "We couldn't survive without yet another IMF program," Sharif told a meeting in the Pakistani capital, Islamabad, last week that was broadcast live. His comments came a day after the IMF agreed a p...
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The Growth of Banks in Indonesia
22Mar mmBy Brian ThompsonNo Comments
Asia, World

The Growth of Banks in Indonesia

The sector has made a roaring recovery since the doldrums of the Asian Financial Crisis of the late 1990s. In the late 1990s, during the Asian Financial Crisis, the Indonesian banking sector essentially collapsed. The crash of the rupiah pulled back the curtain and revealed that the balance sheets of many banks were stuffed with bad loans. Many of them went under, or had to be rescued and recapitalized by the government. Four such failing state-owned banks were merged into a new entity in 1998, which was re-named Bank Mandiri. Today, Bank Mandiri is the largest bank in Indonesia with $138 billion in assets and net income in 2023 of around $3.9 billion. Indonesia’s banking sector is dominated by state-owned banks and has rebounded pretty well from the doldrums of the Asian Financial ...
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India: A recruiting leader in the world?
18Mar mmBy Joe RodriguezNo Comments
Asia, World

India: A recruiting leader in the world?

The Indian job market is surging ahead, leaving its global counterparts in the dust. According to a recent ManpowerGroup Employment Outlook Survey, 36 per cent of Indian employers plan to add new staff in the upcoming April-June quarter. This translates to the highest Net Employment Outlook (NEO) – a key indicator of hiring intentions – among 42 surveyed countries, surpassing major economies like the United States and China. The survey reveals a surge in hiring intentions across various sectors. Healthcare and Life Sciences are at the forefront, with 44 per cent of companies planning to expand their workforce. This aligns perfectly with India's growing focus on healthcare infrastructure and advancements in medical research. The demand for skilled professionals in Communication Services...
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A Silent Drop in Foreign Direct Investment Affecting India
18Mar mmBy Walter ParezNo Comments
Asia, World

A Silent Drop in Foreign Direct Investment Affecting India

This month, India signed a rare free trade agreement with four countries in Europe that make up the European Free Trade Association (EFTA). Coming after 16 painful years of negotiations, the deal will see India lift most import tariffs for industrial products from Switzerland, Norway, Iceland and Liechtenstein. In return, the EFTA countries will invest $100 billion in India over the next 15 years. The announcement comes on the back of flagging foreign direct investment (FDI) into India in recent years. Between April and September of last year, India pulled in just a little over $10 billion in FDI — the lowest tally for the first half of a financial year since the 2008 global recession, according to data from India’s central bank, the Reserve Bank of India (RBI). That comes on the back ...
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