Pakistan's Macroeconomic Adjustment and Resumption of Growth, 1999-2004 (original) (raw)

Economic Growth and Its Determinants in Pakistan

The Pakistan Development Review, 2008

This study explores some of the causal factors for sustained economic growth in the country after the Structural Adjustment Programme (SAP). This programme was initiated as part of a massive world-wide policy measures under the directive of IMF. It aimed to improve the balance of payments through devaluation of local currency, cutting the fiscal deficit and reducing subsidies, decreasing government size and liberalising trade. Empirical psychology reveals that ARDL bounds testing approach employed to find out the cointegration among running macroeconomic variables. ARDL F-statistic confirmed about the existence of long run association. Financial sector’s development seems to stimulate economic activity and hence increases economic growth in long span of time but in short run. Remittances are positively correlated with economic growth in the country. Trade-openness erodes economic growth while financial openness promotes it. Domestic investment activities generate employment opportunities and in resulting contribute to improve economic growth. Finally, increased inflation and economic growth correlated inversely in the country. The findings show that structural adjustment program adopted by government was totally failed to fill its objectives. This study could not incorporate other important macroeconomic variables for economic growth due unavailability of data (quarterly). There is a need to make comprehensive study to find out impact of other macroeconomic variables in the country. Further research on this particular topic will provide inclusive policy implications to enhance growth rate in the country.

Macroeconomic determinants of economic growth in Pakistan.(Report)

The Pakistan Development Review, 1998

The main purpose of this paper has been to examine the effects of some of the key macroeconomic variables on Pakistan's economic growth. Multiple regression framework is used to separate out the effects of key macroeconomic factors on growth over the period 1959-60 to 1996-97. The quantitative evidence shows that primary education to be an important prerequisite for accelerating growth. Similarly, increasing the stock of physical capital would help to contribute to growth. The empirical results also suggest that openness of Pakistan's economy promotes economic growth. Alternatively, the budget deficit is negatively related to both output growth variables. The external debt is also negatively related to growth, suggesting that relying on domestic resources is the best alternative to finance growth. However, the results presented in this study reinforce the importance of sensible long-run growth-oriented policies to obtain sustainable growth.

Pakistan: Breaking out of stagflation into sustained growth

2011

This paper proposes that the underlying cause of the macroeconomic problems facing Pakistan today are a series of supply shocks which have constrained output growth. It is argued that while the current debate has solely focused on government expenditures and revenues, it is critical to also address the acute energy shortages which is constraining supply. The paper goes on to present four recommendations for breaking out of the present stagflation: (i) prudent macroeconomic management, (ii) reviving the role of the government in development while restoring fiscal balance, (iii) loosening monetary policy in order to spur the private sector, and (iv) improving social safety nets.

Pakistan: Growth Set Back by Structural Rigidities (The Quaid-i-Azam Memorial Lecture)

The Pakistan Development Review

This article has five parts. The first provides an overview of major structural weaknesses in the Pakistani economy—I call them faultlines. The following three parts describe the programme of stabilisation and structural reform introduced by the caretaker administration of Prime Minister Meraj Khalid. This government was in office for 104 days, from November 5, 1996 to February 17, 1997. On February 17, the government headed by Prime Minister Mian Nawaz Sharif took office. The fifth part provides a brief assessment of what lies in Pakistan’s future if the problems created by delayed structural reforms are not addressed adequately and on time.

Is Pakistan's Growth Rate Balance-of-Payments Constrained? Policies and Implications for Development and Growth

Oxford Development Studies, 2010

The views expressed in this paper are those of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank. The ADB Economics Working Paper Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness. The ADB Economics Working Paper Series is a quick-disseminating, informal publication whose titles could subsequently be revised for publication as articles in professional journals or chapters in books. The series is maintained by the Economics and Research Department.

Pakistan’s Growth Spurts and Reversals: A Historical Perspective

Lahore Journal of Economics, 2014

This paper takes a historical perspective to search for the major causes of Pakistan's stop-go growth cycles and come to the conclusion that, to varying degrees, the foreign exchange constraint provides a major explanation for these cycles of irregular economic growth in the country, particularly since the 1990s.