Economy Of Pakistan Research Articles

The Impact of Expatriate Remittances on Economic Growth In Pakistan Economy

The objective of this study is to look into the impact of remittances on economic growth in Pakistan. Pakistan came in tenth in terms of remittances collected. Policymakers can benefit from a better understanding of this link. For the purposes of this study, Pakistan data was obtained from the World Bank's Economic Data website between 2001 and 2019. Economic growth is proxies by the independent variable (IV), GDP per person growth, and remittances. According to the test known as the Augmented Dickey Fuller (ADF and the least squares approach, remittances have both immediate and long-term significant effects on the growth of the economy. Policymakers might use the outcomes of this study to design future migrant labor management measures. Over time, Pakistani foreigners have sent more money home as remittances. Money transfers to Pakistan grew from a value of $19.9 billion in 2020 to a total of $31.9 billion in 2021, based on data from the State Bank of Pakistan, suggesting a considerable increase in foreign exchange intake. The remittances have been essential in helping improve the country's balance of payments, supporting the local currency, and increasing levels of consumption and investment. The funds sent back home have supported the local currency's power, improved the country's balance of payments, and stabilized its currency reserves. This has had a favorable impact on the nation's economic development, resulting with increased investment, greater amounts of consumption, and better living conditions for those who live there. The governing body should keep establishing measures that encourage foreigners to send money home to Pakistan in order to help with the flow of remittances.

MONETARY POLICY AND ASSET PRICES: THE CASE OF PAKISTAN

This paper sets the objective of estimating the mediating role of asset prices in the transmission of monetary policy. Vector autoregressive model comprising short-term interest rate, output, inflation and asset prices has been estimated using data of Pakistan economy for the period 2000m01 to 2019m06. We find significant role of asset prices in transmission of monetary policy to target variables, especially when individual asset prices are taken instead of asset price index. Stock prices are found important mediator of transmission from interest rate to output while exchange rate is so for inflation rate; role of house prices remains moderate.

The Impact of Institutional Quality on Sectoral Foreign Direct Investment in Pakistan: A Dynamic Simulated ARDL Approach

Capital is needed to accelerate the development process, but developing nations struggle with minimum resources. Since foreign direct investment (FDI) is essential to solve the funding shortage, developing nations make every effort to attract FDI to their countries. This study was conducted to explore the impact of institutional quality on sectoral FDI in Pakistan using time series data for the period from 1986 to 2019. To create a solid foundation for policy formulation, this study developed a single measure of institutional quality by utilizing a wide range of institutional indicators. It evaluates the impact of overall institution quality on sector-level FDI and examines the causal relationship between institutions and sectoral FDI with a clear focus on a single-country analysis. The dynamic simulated autoregressive distributed lag technique was employed to explore the impact of institutional quality and other factors on FDI. The results of the study explained that institutional quality and TO have a positive and significant effect on the FDI of the primary FDI sector at 5%, while in the case of the secondary sector, the effect of institutional quality, HDI and GDP on FDI inflow is significant at 10% and TO has a significant effect on secondary sector FDI at 5%. In addition, institutional quality and GDP have a positive relationship with tertiary sector FDI at 5%. The empirical findings show that higher institutional quality in emerging economies such as Pakistan encourages large transfers of technological advances through FDI, increasing the overall performance of the economy. This study found that institutional quality significantly increases sectoral FDI in Pakistan. Finally, this study prescribes some policy measures to increase FDI based on the findings.

Socio-Economic Factors of Mobile Money in Pakistan

World technologies have changed the perspective of a consumer; at one time, people need more time to travel than communicate with long-distance living relatives. The telecommunication industry has gained significantly since the invention of the transistor. In the last century, the most valuable development in telecommunication services was the development of the mobile phone. The emergence of information communication and the mobile phone industry has changed the money transmission mechanism. Mobile money is one of the new mechanisms in financial services is that accessible through mobile phones, and it allows people to make their financial transactions via mobile phones. This type of mobile money service enhanced the social life of people and it also generates economic benefits for them. This study aims to investigate the socio-economic determinants of mobile money services in Pakistan and how this service competes with traditional financial systems. To examine the determinants of this research, a study based on Karachi, as a sample of this research. Karachi is the largest metropolitan city in Pakistan and it has the highest internal migration rate in Pakistan. Primary and secondary data were used to analyze the determinants of mobile money in Pakistan. The study reveals that migrated people are less prefer to use mobile money services due to multiple reasons. In addition, the young population has a more frequent use of mobile money. The study concludes that way, mobile money services have enormous potential in Pakistan and it makes a tough call to its competitors by accessibility and affordability. Pakistan's government should introduce more players in the market to create a healthy competition and reduce the unbanked population.

Assessment of effect of fluoride pollution on germination rate, vigor index and fluoride contents in some selected varieties of wheat crop (Triticum aestivum L.)

Wheat being staple food and a source of economy in Pakistan is cultivated on large scale every year. Due to increasing environmental pollution, this crop is being affected directly or indirectly. Fluoride is one of the most toxic pollutants among rest of the environmental pollutants. A pot experiment was conducted to examine the impacts of fluoride toxicity on the seed germination, seedlings growth and F ion accumulation in locally cultivated varieties of wheat crop. In this regards, 5 wheat varieties (Akbar 2019, Anaj 2017, Ujala 2016, Galaxy 2016 and AARI 2011) were sown in green house at Bahauddin Zakaryia University (BZU), Multan, Pakistan by applying five (3 mM, 5mM, 7mM, 9mM and 11mM) treatments of NaF and control (0mM). Germination percentage, vigor index and F accumulation in roots and shoots were considered as parameters of research. Anaj 2017 and Akbar 2019 were exhibiting the highest germination percentage at 3mM (87% and 75%) while at 11 mM only Akbar 2019 showed 13% of germination rate as compared to that of control and rest of varieties. Vigor index was also found maximum 193.3 at 11mM of NaF in Anaj 2017. The fluoride contents were recorded higher in roots as compared to that of shoots in all varieties of wheat i.e. at 11 mM, 1 ug of F was found in AARI 2011 which was observed higher as compared to that of control as well as rest of varieties.

Real estate investment decisions in COVID-19 crisis: the effect of perception and behavioral biases

PurposeThis study aims to examine the interconnectedness between investors' perceptions of assets and their behavioral factors with investment decisions during the COVID-19 pandemic in the real estate business in Pakistan. In this regard, this study predicted investment decisions using individuals’ perceptions of the asset (perceived asset quality, perceived asset price and perceived asset value [PAV]),and behavioral biases (overconfidence [OC], herding [HD], disposition effect [DE] and risk aversion [RA]).Design/methodology/approachThis study used a survey-based instrument to gather a total of 189 usable samples. The sample data were analyzed using partial least square structural equation modeling.FindingsThe findings of this study indicated that PAV, OC and HD significantly predicted the investment decision, whereas DE and RA had an insignificant impact on investment decisions in the real estate business. In addition, this study found that PAV is the most important factor to predict investment decisions in real estate during the COVID-19 crisis.Originality/valueThe authors are certain that the study findings reinforce policy implications for regulators, policymakers and financial institutions. The study findings are also useful and relevant if the real estate sector experiences a crisis in the future.

ASSESSING PAKISTAN'S CURRENT FINANCIAL PROBLEMS: A CLOSER LOOK AT THE ECONOMIC CHALLENGES FACING THE COUNTRY

This paper aims to evaluate the current financial problems facing Pakistan, highlighting the major economic challenges confronting the country. The study employs a mixed-method research approach, which includes both quantitative and qualitative data analysis. The research findings suggest that Pakistan is facing a host of economic challenges, including high inflation, low foreign exchange reserves, a large fiscal deficit, and mounting public debt. In addition, the country's economic growth has been sluggish, with low productivity and declining exports. The study further identifies the causes of these problems, such as poor governance, corruption, and political instability. To address these issues, the paper recommends a comprehensive reform agenda that includes measures to improve tax collection, enhance export competitiveness, reduce public debt, and increase foreign investment. The findings of this study provide valuable insights into the current state of Pakistan's economy and offer policymakers a framework for developing effective strategies to address these challenges.

EXAMINING TAX RATES, TERRORISM, AND TRADE OPENNESS AS DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN PAKISTAN: AN EMPIRICAL ASSESSMENT

Foreign direct investment is crucial for economic development, particularly in emerging economies. Recently, developing countries has seen a rise in the rate of foreign direct investment (FDI) inflows on an annual basis. Tax holidays, investment allowances, exemptions, deductions, and other tax breaks are some of the incentives that a number of countries are providing in an effort to attract more foreign direct investment (FDI). The purpose of this study is to investigate how decisions about foreign direct investment (FDI) are affected by Pakistan's tax system. Specifically, researchers analyzed the impact of the statutory corporation tax rate, the real effective exchange rate, terrorism, and trade openness on foreign direct investment, with GDP growth serving as the controlled variable. Data from time series covering the years 1986 to 2021 are used. The data was compiled using the World Development Indicator (WDI) and the Economic Survey of Pakistan. Researchers used the empirical methods of Auto-Regressive Distributed Lag (ARDL) and Error Correction Model (ECM). The findings indicated that low taxes encouraged long-term FDI relationships between Pakistan and international investors. The statutory corporate tax rate, the real effective exchange rate, and the threat of terrorism are all independent variables that have a negative and significant influence on foreign direct investment. In addition, the findings showed that a significant and favorable influence on foreign direct investment (FDI) was achieved by an increase in both trade openness and GDP growth. It is suggested that developing countries decision-makers implement measures that reduce taxes in order to attract foreign direct investment. In this context, the government must review its foreign direct investment formulation goals.

Waste as Resource for Pakistan: An Innovative Business Model of Regenerative Circular Economy to Integrate Municipal Solid Waste Management Sector

Municipal solid waste (MSW) management is a global concern, especially in low–middle-income countries such as Pakistan, which require the redressal of MSW treatment issues to attain sustainability in the waste sector. The prosperity of municipal solid waste (MSW) collectors, i.e., the sanitary workers, is critical in the waste management hierarchy. Hence, the health, safety, social welfare, economic conditions and overall wellbeing of this tier need to be focused on more. Safeguarding the interests of the sanitary workers will support the MSW management sector in sustainability, which will help to generate revenue and minimize climatic impacts. An innovative MSW business model with waste ownership and technological intervention has excellent potential to support the sector towards a circular economy in Pakistan, the fifth most populous country in the world, generating about 100,000 metric tons of MSW per day. The proposed recycling business model will ensure a daily material recovery of 26,070 tons with 4721 tons of compost manufacturing in the country, which ultimately helps towards achieving the sustainable development goals (SDGs) and meeting the targets of nationally determined contributors (NDCs) by 2030. In addition, the sector’s economic potential can contribute 5.5% to the total annual budget and possibly pay 1.4% of the gross domestic product (GDP) per annum to service national foreign debt, thus helping maintain the debt threshold value with an opportunity to accelerate the economic growth of Pakistan.

The Impact of Perception of Justice on Tax Compliance Behavior through the Mediating Role of Social Support: An Empirical Study in Pakistan

The government adjusts its financial obligations and collects taxes to pay for the public through taxes. Tax behavior varies from individual to individual. Tax audits and fines are also policies to collect tax amounts. The study aims to determine tax compliance behavior. A quantitative approach is applied to obtain the respondent's perception of justice in tax laws. Overall total number of questionnaires sent to bar councils was 400, of which 325 lawyers responded. The problem is that Pakistan needs a better tax collection system; therefore, many problems are faced during tax collection. The justice system is better for recovering the tax penalties, whereas procedural justice investigates the compliance of individuals about the tax. Taxpayers also find ways to reduce the amount of tax and make deduction claims by hiding some of their assets. Tax audit is also a significant field to assess and measure fraud in the tax collection system. Results differentiate that there is a positive and significant relationship between tax compliance behavior and perception of justice. So, it rejects the null hypothesis and shows a significant relationship. If the individuals cooperate with the government and perform their duties well, then the structure of the tax system can survive and collaborate in the economy of Pakistan.

Impact of Inflation and FDI on Economic Growth: A Time Series: Analysis of Pakistan

The objective of this research paper is to check the impact of inflation, exchange rate and FDI and economic development researcher used time series data from 1973 to 2020 for my project, which researcher gathered from the sources World development indicator and State Bank of Pakistan. For inflation researcher used the proxy of Consumer Price Index (CPI), and other variables remain the same. The study paper's goal is to provide answers to the following questions: What percentage of inflation is beneficial to an economy? The three factors in the study paper's subject have a favorable long-term association with the findings. This indicates that when inflation is below the 2.80 percent barrier, which is the point at which it hinders growth, the Pakistani economy expands at its fastest rate. The marginal effect of FDI on growth is found to be positive when inflation is below the threshold, but it is found to be negative when inflation is over the threshold. In conclusion, the Pakistani government must harness, develop, and stabilize the nation's macroeconomic system while ensuring that inflation stays below the threshold in order to prevent alienating foreign investors.

An Assessment of Low Tax Paying in Pakistan: Causes and Problems

Taxation plays a very vital role in the development of any state it is the backbone of financial progress and strengthens the country economically. In Pakistan, the matter of Tax is multifarious and Government levies many taxes on individuals in different capacities. There are different departments regulating and dealing with tax-related matters. In past, the lack of tax paying affected the economy of Pakistan. But for many years, the government of Pakistan offered specific immunities to increase the revenue of Pakistan through tax collection. This policy of the Government was very successful. Despite all these efforts, immunities, tax collection and increase in revenue, the economy of Pakistan did not improve. This research can improve it by different methods and studies. This study was conducted to assess the problems and causes of low tax paying in Pakistan. The outcomes will recommend suggestions and different solutions to overcome these problems.

Impact of Non-Farm Activities on Income: A Case of Rural Areas of District Bahawalpur

Over 68% of Pakistan's population lives in rural areas, and they primarily rely on agriculture to make a living. Pakistan's rural non-farm economy is diverse, encompassing a wide range of activities. The objective of the current study is to quantify the effect of rural non-farm activities on rural household's income in Punjab, Pakistan's district of Bahawalpur. For households with lower incomes, the non-farm market is one of their main sources of income. The study's respondents were chosen using a multistage sampling process. A standardized questionnaire was used to collect data throughout five stages. The findings demonstrate that non-farm activities increase the rural household's income and employment. The income of the household is positively and significantly influenced by education and experience. The results also shows that non-farm activities as well as non-farm participants augments rural income. From the policy prospective, it is recommended that in rural areas non-farm activities should be promoted.

Nexus of renewable energy, green financing, and sustainable development goals: an empirical investigation.

Achieving the sustainable development goals (SDG) agenda, proposed by the United Nations by 2030, has become the main concern around the globe. The continuing ecological crises and energy sustainability issues can only be dealt with using sustainable solutions such as green finance. Green finance has become a pioneer in economic green transformation resulting in the collective development of both the economy and the environment. Therefore, this study aims to examine the influence of green finance on the achievement of the five major sustainable development goals in the context of the economy of Pakistan. The renewable energy scheme proposed by the State Bank of Pakistan in 2016 serves as a basis for this study. We innovate our research by studying the impact of green finance on five SDGs simultaneously. The association between the variables is checked using random effect modeling. The findings reveal that green finance supports SDG 3, 12, and 13 while having little effect on SDG 1 and SDG 2. Moreover, green finance is a suitable reform for the sustainable development of the economy and the environment. The study has robust policy implications for Pakistan.

Assessing the Environmental Impact of Energy Efficiency and Renewable Energy: Evidence from Pakistan

Decreased environmental degradation has come to the forefront of policy debates and academic investigations. Using data from the Pakistan economy, which accounts for a substantial amount of global carbon emissions, investigate the effects of energy efficiency, human capital, renewable energy, and economic growth on the environment from 1990 to 2020. We reveal the influence of human capital by focusing on education investment to provide an understanding of the necessity of policy-making in Pakistan to prevent environmental deterioration. According to the findings, human capital expansion is substantially associated with lower CO2 emissions. Using the autoregressive distributed lag model (ARDL) estimate method, we present a complete analysis of the energy efficiency-environmental deterioration nexus. Energy efficiency, renewable energy, and human capital all are adversely associated and considerable influence on the environment. To attain a green environment, the study recommends strategies to boost energy efficiency, renewable energy, and human capital.

The Prevalence of Gastrointestinal Nematodes in Livestock and their Health Hazards: A Review

Livestock plays an important role in the national economy and has a significant share in the gross domestic product of Pakistan. Parasitic diseases and worm infestations negatively affect their health, production, and reproductive performance. In addition, parasitic infestation in livestock reduces gross production values and renders huge economic losses globally. Among the parasites, the most important are nematodes. They are distributed worldwide and affect all kinds of livestock. This review aimed to elaborate on the main gastrointestinal nematodes, their mode of action, impacts on livestock and their control (physical, chemical or biological) strategies. Common examples of nematode worms infesting the livestock are Ascaris, Hemonchus, Strongyloids, Trichostrongyliods, Ostertagia, Trichuris, Dictyocaulus, Trichnellia, Enterobius, Cooperia, Gunagylonema, Chabertia, and Oesphagostomum. The gastrointestinal nematodes are detrimental to the animals’ health. Nematodes primarily affect animals’ feed consumption and efficiency, and severe ailments result in the death of the affected animals. The production and health losses primarily depend on the age of the animals, the degree of severity of worm infestation, epidemiology pattern of the parasites, management strategies of the flocks, and ecoclimatic conditions which are favorable for the worm’s infestation. To minimize these issues, farmers should be educated on the importance of intensive livestock management and environmental sanitation, as well as strategic deworming of cattle using efficient broad-spectrum anthelmintics, biological control of the parasites, and breaking their life cycle and intermediate hosts.

Riding the Waves of Fluctuating Oil Prices: Decoding the Impact on Economic Growth

Oil price fluctuations have always been controversial and remain significant in how a country's economy develops. It is especially easy for the worldwide price of natural resources to fluctuate, putting developing nations at risk of economic instability. Consider Pakistan's economy, which is very sensitive to changes in oil prices due to its reliance on the commodity. This research analyses the effects of oil prices on several macroeconomic indicators, including inflation, imports, gross savings, domestic lending to the private sector (DCPS), and industrial value-added in Pakistan. The study uses an error-correcting framework known as autoregressive distributed lag (ARDL) modelling to examine long-term connections between variables and their short-term implications. Additionally, data acquired between 1970 and 2020 was analyzed using Granger causality tests, impulse response functions (IRFs), and variance decomposition analyses (VDAs). The study found that inflation and domestic loans to the private sector hampered economic development in the near run. Conversely, imports, gross savings, industrial value added, and oil rents have a positive effect. A long-term connection between these variables was verified using the boundaries test. A unidirectional link was found in the causality tests between economic growth and imports, inflation and economic growth, and gross saving and domestic credit. An inverse link between domestic credit and inflation was found. The effect of oil rents on economic development in Pakistan is expected to rise during the next four years, according to the forecasts, before levelling out. According to the VDA results, the most critical factor influencing Pakistan's economic development over the next decade would be domestic lending to the private sector. Following these empirical results, the study proposes policy adjustments that might help Pakistan's economy expand more quickly and sustainably.

The Myth of Missing Women: A Case Study of Pakistan

In the contemporary era, women's empowerment promises enormous gains ensuring a vigorous socio-economic boost for the economy. Further, the persistently changing world demands equity for both men and women as restrictions to women’s rights and opportunities cost an economy in terms of income losses. Hence, overcoming gender discrimination and inequality remains a challenge for developing economies. The idea of “missing women” is linked to the appalling absence of women in substantial parts of an economy. The prime objective of the study is to evaluate the myth of missing women for the economy of Pakistan. The study investigates whether the missing women problem exists in the economy or not. For this purpose, a multidimensional approach would be utilized to figure out various gender inequalities considered in the missing women paradigm. Given the available data and statistics opacity, the study would employ both time series (tentatively for the era of 1990-2020) and cross-sectional data of the Pakistan Social and Living Standards Measurement (PSLM) survey of 2019-20. The former would be collected from the websites of World Bank indicators while the latter would be gathered from the Pakistan Bureau of Statistics. Using a mixed approach, the study qualitatively investigates the aggregate indicators associated with the concept of missing women including the sex ratio, fertility rate, and population dividend of Pakistan with a comprehensive regional comparison. Whereas a quantitative analysis would be performed to examine different gender inequalities through the novel context of missing women. The authorities of Pakistan have made strides in reducing the gender gap through better educational enrolment rates and access to health care services. However, these improvements have not been well transmuted into an enhancement of equity and quality of women’s life. There is a dire need to broaden the horizon of gender equality and hence this study views gender inequality with the dimension of “missing women”.

Diversity of Shari’ah supervisory board and the performance of Islamic banks: evidence from an emerging economy of Pakistan

PurposeGiven the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’ performance from the stakeholders’ perspective in the context of Pakistan.Design/methodology/approachRandom-effects model and generalized method of moment are used to investigate the impact of SSB diversity on IBs’ performance across a panel data of 22 Islamic banks in Pakistan from 2005 to 2020 inclusive.FindingsThe findings of this study show that SSB size, SSB relevant educational background diversity, bank’s size and bank’s stability have a positive impact on IBs’ performance. In contrast, SSB age, nationality and cross-membership diversities have a negative impact on IBs’ performance. Moreover, SSB gender, tenure and general educational diversities have no significant impact on IBs’ performance.Research limitations/implicationsSSB diversity and IBs practices are different across different jurisdictions. This study is conducted on IBs in Pakistan because of data constraints; thus, the results of this study may not be generalizable to other countries' IBs.Practical implicationsIn structuring the SSBs’ framework, the regulatory authorities and policymakers should consider mandating an ideal SSB size and hiring relevant qualified members with low cross-membership to improve IBs' performance. Thus, the structure potentially attracts Muslim stakeholders, enhances their satisfaction and improves IBs' performance.Social implicationsHaving diversified members in the SSB, IBs equally benefit both individual and group stakeholders in society. Diversity in SSB members enhances IBs' performance and the social welfare of various stakeholders in society.Originality/valueTo the best of the authors' knowledge, this is the first empirical research that examines comprehensively the impact of SSB structural and demographic diversities on IBs' performance in the context of Pakistan. This paper contributes to the unique Shari’ah governance structure in the context of Pakistan. Additionally, this study may serve to assist IBs’ stakeholders in better comprehending the SSB practices of IBs in Pakistan.

The Importance of Renewable Energy Consumption and Human Capital in Attracting Foreign Direct Investment in Pakistan

This research looks at the connections between FDI, renewable and nonrenewable energy, human capital, and the environment in Pakistan. Using data collected from 1998 to 2020, this study uses the autoregressive distributed lag (ARDL) method to quantify the interdependencies between various conceptual frameworks. All variables tested had a significant impact on FDI in the long run. The environment coefficient is significantly negative. In addition, there is a positive indication of significance for the coefficients of renewable energy, non-renewable energy, and human capital acquired through formal education. Based on the findings of this research, it is recommended that national governments take steps to attract more FDI.