Tata Group's market capitalization has now surpassed the entire economy of Pakistan, with several conglomerate companies yielding substantial returns over the past year. The conglomerate's market capitalization reached $365 billion, exceeding the estimated GDP of Pakistan by the International Monetary Fund (IMF), which stands at approximately $341 billion.
Notably, Tata Consultancy Services (TCS), India's second-largest company with a valuation of $170 billion, represents nearly half of Pakistan's economy alone. The performance of various Tata companies has contributed significantly to the conglomerate's market capitalization surge. Noteworthy returns from Tata Motors and Trent, coupled with rallies observed in Titan, TCS, and Tata Power over the past year, have propelled Tata Group's market capitalization.
At least eight Tata companies have witnessed a doubling of wealth within this period, including TRF, Trent, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering. Additionally, Tata Capital, slated to launch its IPO next year, currently holds a market value of ₹2.7 lakh crore.
Meanwhile, Pakistan continues to grapple with economic challenges. While recording a growth rate of 6.1% in FY22 and 5.8% in FY21, the country's economy is estimated to have contracted in FY23. Recent floods have inflicted significant damage amounting to billions of dollars, further exacerbating Pakistan's economic woes.
With external debt and liabilities totaling up to $125 billion, Pakistan faces the daunting task of meeting $25 billion in external debt payments commencing from July. Compounding these issues, the country's $3 billion program with the IMF is set to conclude in March, while its foreign exchange reserves currently stand at $8 billion.
