New Delhi— BJP leader Amit Malviya on Monday contrasted the strength of India’s economy with Pakistan’s financial fragility, pointing to the stark difference in foreign exchange reserves: India’s at $688 billion and Pakistan’s at just $15 billion.
“Forex reserves tell the tale: Pakistan’s Bankruptcy vs India’s Boom,” Malviya posted on X (formerly Twitter), criticizing Pakistan’s economic mismanagement. He questioned how long Pakistan’s limited reserves could last and noted that several Indian public and private sector conglomerates boast revenues far exceeding Pakistan’s total reserves.
“Pakistan can’t feed its people, yet its generals—both serving and retired—are busy dreaming of becoming Ghazis,” added Malviya, who heads the BJP’s Information and Technology department.
His remarks came as global ratings agency Moody’s published a report underscoring the divergent economic trajectories of the two countries. Moody’s maintained that India’s macroeconomic conditions remain stable—even amid rising tensions following the April 22 terrorist attack in Pahalgam that killed 26 tourists—while Pakistan’s fragile economy remains at risk of further deterioration.
Moody’s warned that any sustained escalation of hostilities with India would severely impact Pakistan’s already weak fiscal position. The agency noted that ongoing geopolitical tension could impair Pakistan’s access to external financing and further erode its meager foreign exchange reserves—insufficient to meet its external debt obligations.
In contrast, India’s large reserve buffer, driven by strong public investment and resilient domestic consumption, provides a cushion against global shocks. Moody’s said India is likely to remain stable even under moderate defense spending increases, as its economy is largely insulated from trade with Pakistan—accounting for less than 0.5% of its total exports in 2024.
Pakistan, meanwhile, continues to grapple with the aftershocks of narrowly avoiding default in 2023, when it secured a $3 billion bailout from the International Monetary Fund. The country remains heavily reliant on external support and is currently seeking an additional $1.3 billion climate resilience loan.
Moody’s contrasted this situation with India’s continued growth momentum, suggesting that India’s macroeconomic fundamentals position it as a more attractive and stable investment destination amid global uncertainty. (Source: IANS)
