Financial Economics

Currently, India and Pakistan’s relation is on the decline side in the past few weeks due to attack on CRPF soldiers killed in bomb blast in the Jammu and Kashmir. In response, the Indian air force attacked a terrorist camp in Pakistan. This caused a warlike, but the question arises how much war can affect Pakistan’s economy? Can does India create a crisis in Pakistan without announcing a war? Then my answer will be partial ‘Yes’ without announcing a war India can create a crisis in Pakistan. So let’s see how India can able to do it. Pakistan’s economy is not a self-sufficient economy; it depends upon other countries to run its day to day life and India can block this to create a crisis. 1. Stopping the exports –                                       The first step that Indian can take is by stopping the exports and imports to Pakistan. India and Pakistan trade was not sign...

China Pakistan Economic Corridor (CEPC) is an initiative taken by a Chinese and Pakistani Govt. It a part of China’s One Belt One Road initiative (OBOR), CPEC is creating to boost trade between China and Pakistan and by this route, China can by-pass oceans. The CEPC plan involves constructing a network of transport, energy, industrial and agricultural projects that will stretch around 2,700 KM. from Gwadar port in Pakistan to Chinas Xinjiang. CPEC can help Pakistan to increase its export and boost its economy, as the trade between China and Pakistan can become more comfortable. It will connect two ports of Pakistan with China via roads and rails. CPEC will make across Pakistan and connect to China. So why did these projects will create problem to Pakistan we will discuss this in the Blog. 1.      Overspending on CEPC –                                         ...

The US and China are the top two economies in the world under a trade war. The US has started this due to Trade imbalance between the two countries. The US is facing a trade deficit due to more import and less export to China. This will be harmful to The US in the long run. Due to a trade war, the US has imposed a $200 Billion Tariff on China and in return, China has imposed a $60 Billion (Till the date) Many of you may have a question of how this trade war will be a golden opportunity for India? There is a gap created in both economies that India can fill by exporting its goods and services. Let’s understand 1.      The US–             The US is a big country with people with a high standard of living. Due to a trade war, Chinese goods will be more expensive than earlier. So India has to produce products to concentrate on these markets first.    Following are goods which India can take advantage.  The US im...