New Delhi– BJP leader Amit Malviya on Monday drew a sharp contrast between the economic conditions of India and Pakistan, citing foreign exchange reserves as a telling indicator of each nation’s financial health. In a post on social media platform X, Malviya compared Pakistan’s modest $15 billion forex reserves to India’s robust $688 billion stockpile, labeling the disparity as symbolic of “Pakistan’s bankruptcy vs India’s boom.”
“How long will it take for Pakistan’s tiny billions to disappear?” Malviya asked rhetorically, noting that several Indian conglomerates, both public and private, generate annual 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,” he added.
The remarks come amid heightened tensions between the two nations following the April 22 terror attack in Pahalgam, Jammu and Kashmir, which left 26 Indian tourists dead. The attack has drawn strong condemnation and reignited geopolitical concerns in the region.
Global ratings agency Moody’s also weighed in on the evolving scenario in a report released Monday. While acknowledging the tragic events in Pahalgam, Moody’s said India’s macroeconomic outlook remains stable, supported by strong public investment and resilient private consumption. The agency does not anticipate significant disruption to India’s economy even if tensions escalate, pointing out that Pakistan accounts for less than 0.5% of India’s total exports.
Pakistan, however, remains in a far more precarious position. The report notes that further escalation in tensions could derail Islamabad’s fragile fiscal recovery and severely hamper access to external financing. With reserves hovering just above $15 billion, the country remains dangerously exposed to external debt obligations in the coming years.
Moody’s emphasized that Pakistan narrowly avoided sovereign default in 2023 thanks to a $3 billion bailout from the International Monetary Fund. The country remains heavily dependent on international support and is currently seeking an additional $1.3 billion loan under the climate resilience framework.
In stark contrast, India’s foreign reserves provide a substantial buffer against external shocks, underscoring its relative economic resilience. Moody’s said while increased defense spending in response to regional security concerns could slow India’s pace of fiscal consolidation, it is unlikely to significantly undermine broader economic stability.
Malviya’s comments and the Moody’s report together highlight the deepening economic gulf between the two South Asian neighbors—an imbalance that is growing even more pronounced amid rising political and military tensions. (Source: IANS)
