Capital flight from Pakistan has remained one of the major concerns of policy makers, mainly because of the nature of private capital outflows; that is, whereas private citizens hold a large amount of foreign assets, the country’s burden of foreign debt continues to grow. Capital flight over...

This paper analyses country-specific and industry-specific determinants of intra-industry trade (IIT) between Pakistan and other SAARC countries using panel data techniques. This paper also disentangles total IIT into horizontal and vertical IIT. The Vertical IIT is further divided into...

In recent years the gap between real exchange rate (RER) and nominal exchange rate (NER) has widened in Pakistan. A proper understanding of the determinants of real exchange rate can be extremely useful for the management of current account deficit. The results of this study show that the...

Historically, Pakistan’s economic growth record, especially of the manufacturing sector, has been quite satisfactory. However, since the late 1980s Pakistan has been facing a slow growth of manufacturing industries, particularly of the large-scale manufacturing units. This has led some...

Whereas the policy incentives were designed to promote exports from Pakistan, the incentive system instead led to illicit export practices, i.e., export overinvoicing due to the weaknesses of implementation. Such practices resulted in a significant financial loss to the country and undermined...

Irrigation plays a crucial role in improving agricultural productivity, it has resulted in waterlogging and salinity problems in Pakistan due to both water seepage from canals and overdoses of water encouraged by inappropriate water pricing practices. As many as 2.2 million hectares of land...

From its inception the GATT had guided international trade most successfully until the early 1970s. However, afterwards the developed countries (DCs) increasingly recurred to new forms of trade restrictions not covered by the GATT rules. Ironically, these “grey measures” were mostly against...

This paper examines the impact of labour emigration on the wages of both the skilled and unskilled workers. The paper is based on a 3 X 3 trade-theoretic model, where a subset of the goods produced are traded at internationally fixed prices. The results of the model hinge crucially on the...