I was browsing The Economist at a book store the other day and habitually jumped to the last few pages that showcase economic data and indicators from a number of different countries. Pakistan is one of the countries they cover, along with other asian economies such as China and India. The April 2010 data actually seems fairly positive.
As the chart above shows, Pakistan’s long term bond yields are at about parity with India’s. Long term bond yields indicate how much the state has to “offer” to raise domestic debt. In Pakistan’s case, this is now pretty much in line with regional metrics and that’s an indication of stability.
Similarly, if you look at the budget balance as a % of GDP, we’re actually doing better than our neighbours in this area. This is where strict control on spending has helped. Even though these cost-control moves have had their critics, this metric shows the pay-off.
In other news, the KSE has been doing fairly well also. We recently covered its performance and the fact that it just achieved a 19-month high.
All in all, there is light at the end of the tunnel. One can see it now. A few more months of progress and we should be in the clear.