Thread on portfolio flows & ‘hot money’:

As per @StateBank_Pak’s update from 7/04/20 Pak’s flows since July’19 were as per below:

Equity inflow: $647m
Equity outflow: $847m
Net *out*flow: -$200m

Debt inflow:$3,492m
Debt outflow: $2,292m
Net *in*flow: +$1,199m

1/N Term ‘hot money’ (v.topical in Pak debt mkts) is derived from the perceived temporary nature of such investments & how they tend to evaporate when things go sour.

Case made against such flows is based on instability such a sudden outflow would cause to fx/fixed income mkts 2/N

With rise in fakenews/data manipulation its only human 2 make mistakes. @TheEconomist's Espresso publication mistakenly stated Pak's economy is contracting. A recession/contraction means negative growth in an economy’s output & is very different from a slowing *growth* rate & 1/9 However I reached out to The Economist & they were professional enough to admit their mistake & issue a correction. Funnily an ex-Fin.Minister & some journalists have been pushing the contraction/shrink narrative in nominal $ terms even tho PK’s real GDP is expected to grow. 2/9