Asia

Sustaining the recovery will require both monetary and fiscal support as well as accelerated structural reforms China’s economy is set to rebound this year as mobility and activity pick up after the lifting of pandemic restrictions, providing a boost to the global economy. The economy will expand 5.2 percent this year, according to our latest projections, versus 3 percent last year. That’s good news for China and the world as the Chinese economy is now expected to contribute a third of global growth this year. Even so, China still faces significant economic challenges. The contraction in real estate remains a major headwind, and there is still some uncertainty around the evolution of the virus. Longer-term, headwinds to growth include a shrinking population and slowing produ...

After an economic collapse and political upheaval, Sri Lankans have become resigned to leaner meals and reduced horizons. On the surface, calm has returned to Sri Lanka since the South Asian nation plunged into political chaos and virtual bankruptcy last summer. Gone are the fuel lines that snaked for blocks; a seaside expanse that had been the site of a monthslong protest encampment was resplendent over the holidays with Christmas lights and carnival rides. But underneath, the island’s economy remains on a ventilator, with the government yet to secure a way out of crushing debt. Sri Lankans have become resigned to a sad reality: pared-down meals, shrunken incomes and reduced expectations. Many young people are desperately trying to find a way out of the country. ...

China's National Bureau of Statistics (NBS) announced that the country's annual GDP growth decreased to 3%, much below the declared objective of 5.5% in 2022, and that its economic slowdown may have global repercussions, according to Financial Post.  Vice-premier of the People's Republic of China Liu He, who spoke at the World Economic Forum in Davos in 2023, effectively outlined the issues and difficulties that China and the world economy are currently confronting. "Over the past five years, we have experienced all kinds of unexpected events, and witnessed profound changes in the world's political and economic landscape. Therefore, the theme of this year's Annual Meeting, 'Cooperation in a Fragmented World', cannot be more relevant," He said. "The Covid-19 pandemic puncture...

Pakistan’s economic crisis is worsening with each passing day. As of the beginning of 2023, the foreign exchange crisis has deepened significantly. On January 6, the country's forex reserves, held by the State Bank of Pakistan (SBP), dropped to a low of USD 4.343 billion, enough to cover only three weeks of imports.[1] This decline was due to the repayment of USD 1 billion in commercial loans to two UAE-based banks. Additionally, remittances in the recently concluded six-month period of July-December 2022 were recorded at USD 14.1 billion, USD 1.7 billion less than in the same period last year (USD 15.8 billion).[2]  Moreover, the weekly food inflation has reportedly jumped by nearly 31 per cent compared to last year.[3] All these factors have exacerbated daily hardships of...

Former Australian Prime Minister Tony Abbott turned down President Barack Obama's request to halt Australia's profitable iron ore trade with China in 2014; Treasurer Joe Hockey called the request "crazy." However, there is a real possibility that Australia may be preparing to restrict or obstruct what is expected to be a profitable future export: lithium, especially in light of the escalating geopolitical competition. Lithium is a crucial component of electric car batteries and has been dubbed the "new oil" by Tesla CEO Elon Musk. China is the global leader in the production of this good, which plays a significant role in its post-energy transition economic plan. China is a significant investor in Australia's lithium business, owning holdings in three of the country's main mines as ...

 December 23, 2022 Pakistan is on a spending spree, with economy in shambles and people in dire straits. The proverbial ostrich finds its parallel in the banana nation and buries its head in sands, in denial of the existence of painful realities. However, the extravagant nature of expenditure is not directed towards welfare, but for glossing over the counts it does not fare well. It leaves no stones unturned in sustaining the make-believe world of normalcy, even as most of its citizens have hardly any access to square meals. It remains a mystery that how a cash-strapped Pakistan manages to fund its obsession with Kashmir and other unproductive ventures, while continuing to barrel down the negative growth track and poised for smashing into bankruptcy. A close look in its s...

The delayed visit of the International Monetary Fund (IMF) Monitoring Mission to conduct the 9th review of the ongoing Extended Fund Facility (EFF) Progarmme is increasing Pakistan’s balance of payments difficulties on a daily basis.  The global capital market - where Islamabad can sell bonds - has now closed its doors as all its globally traded bonds are currently selling at steep discounts. Pakistan’s forex reserves fell to USD 6.7 billion, which could just cover four to five weeks worth of imports. With this, Islamabad is facing the real ‘currency crisis’. Amid concerns of Islamabad’s credibility, immediate needs are to import 2.5 million tonnes of wheat, 7 million bales of cotton, USD 6 billion worth of crude oil, USD 3 billion worth of machinery, USD 3 billion worth of LNG pl...

Pakistan has come up with Foreign Investment (Promotion and Protection) Bill, 2022 which is now mired in controversies. The stated objective of the Bill is to provide for the promotion and protection of certain “qualified foreign investments” which are expedient and in the national interest to bring in large-scale foreign investments of USD 500 million or more. Pakistan’s PM Shehbaz Sharif told the Assembly that with the passage of the Bill, Baluchistan would reap the maximum benefit in the RekoDiq project by receiving around 35 to 40 billion dollars in thirty years.The immediate trigger for the passage of the Bill came due to the RekoDiq dispute. The RekoDiq open-pit mine is located in the Chagai district of Baluchistan and is one of the largest copper and gold reserves in the world with...

Facing two-way pressure from the European Union (EU) and domestic export lobby, Pakistan seems to be in the midst of an image makeover exercise to save its GSP plus status. Pakistan immensely gains from zero import duty on 66% of the tariff lines which has boosted its textile, leather, sports and surgical goods sectors. Owing to the scheme, Pak exports to EU increased substantially from €3.56 billion in 2013 to €6.64 billion in 2021. However, the benefits accruing to Pakistan since 2014 in the form of concessions for exports are subjected to biennial reviews by EU on various parameters. The main emphasis of these reviews is to check the progress of Pakistan’s institutions including businesses in the areas of human rights, labor rights and climate change.  Till now, three such revi...

LAHORE: Speaking to the media after an event at Punjab University’s (PU) New Campus here on Friday, Mehmood Bhatti poured his heart out, saying he did not want to, but he was seriously thinking of shifting his charity and philanthropic work to countries like Vietnam and Cambodia as in his own country he was implicated in false and fabricated cases. He said he had taken a lawyer to court for allegedly transferring a piece of land into his and his wife’s names. He went on to say that he had purchased the land in the provincial capital of Lahore to establish an orphanage. The fashion czar said that overseas Pakistanis wanted to invest in Pakistan. Nonetheless, the fear of becoming victims of fraud and subsequent mistreatment by state institutions was a huge deterrent. He said the qabza ma...