Template-Type: ReDIF-Article 1.0
Author-Name: Hafiz A. Pasha
Author-X-Name-First: Hafiz A.
Author-X-Name-Last: Pasha
Author-Workplace-Name: Social Policy and Development Centre, Karachi.
Author-Name: Aisha Ghaus-pasha
Author-X-Name-First: Aisha Ghaus-
Author-X-Name-Last: pasha
Author-Workplace-Name: Social Policy and Development Centre, Karachi.
Author-Name: Naveed Aamir
Author-X-Name-First: Naveed
Author-X-Name-Last: Aamir
Author-Workplace-Name: Social Policy and Development Centre, Karachi.
Title: Hidden Subsidies
Abstract: Many governments use price subsidisation (total costs less total revenues from
user charges) to meet social protection objectives in lieu of, or in addition to, direct
income transfers. Such subsidies may be perceived as influencing behaviour to further
other socially desirable policies. For example, the price response induced by lowering
the price of schooling will both lower the cost of living for the beneficiaries and also
increase the investment in education more than a similar income transfer would achieve.
The incidences of benefits from a general price subsidy are proportional to
purchases and can be deduced from the pattern of expenditures. Some goods are
inappropriate vehicles for redistribution since subsidies on them will not only accrue
mainly to the rich they will actually increase inequality in welfare. It is therefore
important to ensure that commodities chosen for price subsidisation are largely
consumed by the lower income groups. Also, detailed data on such commodities should
be made public to make the extent of subsidy easily tractable.
In the case of Pakistan, the problem of lack of transparency of federal and
provincial budgets is vividly demonstrated by the inability of such budgets to readily
highlight the subsidy on the various economic and social services, which are essentially
in the nature of ‘private’ goods, provided by such governments. This is not only a
reflection of the problem of the nature of budgeting practices whereby, first, revenues
and expenditures on different heads are shown separately and no account is made either
of depreciation of assets or the costs of capital used to finance the acquisition of assets
which yield a stream of services. Second, to the extent that the subsidies largely benefit
the upper income groups, political compulsions dictate that such subsidies largely
remain hidden.
Journal: The Pakistan Development Review
Pages: 629-640
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/629-640.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:629-640
 
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Iqbal
Author-X-Name-First: Muhammad
Author-X-Name-Last: Iqbal
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Author-Name: M. Azeem Khan
Author-X-Name-First: M. Azeem
Author-X-Name-Last: Khan
Author-Workplace-Name: Sciences Institute, National Agriculture Research Center, Islamabad.
Author-Name: Munir Ahmad
Author-X-Name-First: Munir
Author-X-Name-Last: Ahmad
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Title: Adoption of Recommended Varieties: A Farm-level Analysis of Wheat Growers in Irrigated Punjab
Abstract: This study uses farm level data to analyse the determinants of adoption of
recommended wheat varieties in irrigated Punjab, Pakistan. A notable proportion of
wheat acreage is sown to non-recommended wheat varieties in the province. These
cultivars had either lost (overtime) or did not have resistance against yellow rust. Farm
size, education, and size of wheat enterprise on the farm are the important determinants
of adoption of recommended wheat varieties while tractor ownership and irrigation
source play a positive but insignificant role in the adoption decisions. Age and tenure
proved to be less of a constraint towards adoption of the recommended wheat varieties.
The likelihood of the adoption of recommended wheat varieties varied among tehsils,
with the highest probabilities of adoption in Melsi and Arifwala tehsils of cotton-wheat
zones I and II respectively.
Journal: The Pakistan Development Review
Pages: 29-48
Volume: 41
Issue: 1
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume1/29-48.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:1:p:29-48
 
Template-Type:ReDIF-Article 1.0
Author-Name: Ali Mohammad Mir
Author-X-Name-First: Ali Mohammad
Author-X-Name-Last: Mir
Author-Workplace-Name: Population Council, Islamabad.
Author-Name: Zeba A. Sathar
Author-X-Name-First: Zeba A.
Author-X-Name-Last: Sathar
Author-Workplace-Name: Population Council, Islamabad.
Author-Name: Gul Rasheeda Sheikh
Author-X-Name-First: Gul
Author-X-Name-Last: Rasheeda Sheikh
Author-Workplace-Name: Population Council, Islamabad.
Author-Name: Minaj Ul Haque
Author-X-Name-First: Minaj Ul
Author-X-Name-Last: Haque
Author-Workplace-Name: Population Council, Islamabad.
Title: Bringing About a Behavioural Change in Providers to Meet the Reproductive Health Needs of Clients
Abstract: The international conference on population and development held in Cairo in
1994 has became a historical turning point in the way population policies and
programmes are perceived and sexual and reproductive health services are
conceptualised and delivered.
Inherent in the ICPD plan of action is the concept of care that recommends
providing a range of reproductive health services to both men and women, that are
safe and effective, and that satisfy clients, needs and wants. Clients are far more
likely to use services that are of high quality. Achieving quality care requires
complying with high technical and ethical standards (such as freedom of choice,
informed consent, and freedom from coercion and abuse) and providing services at
costs that are affordable to both clients and health care system. The most common
barriers to quality are negative provider attitudes or behaviours, poor interactions
between clients and providers, a lack of essential drugs and supplies in facilities, and
delays in referrals to other necessary services.
Pakistan has among the worst reproductive health indicators in the developing
world. It has lagged behind many of its neighbours in terms of its social indicators.
Access to health and educational facilities, especially in the rural areas has remained
outstandingly weak. Maternal and infant mortality rates are unacceptably high at
above 500 per 100,000 and 80 per 1000 births, respectively. Malnutrition, anaemia
and reproductive tract infections are widely prevalent in women.
Journal:Pakistan Development Review
Pages: 839-856
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/839-856.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:839-856
 
Template-Type: ReDIF-Article 1.0
Author-Name: Naveed H. Naqvi
Author-X-Name-First: Naveed H.
Author-X-Name-Last: Naqvi
Author-Workplace-Name: Department of Economics and Finance, University of Durham, UK.
Title: Crowding-in or Crowding-out? Modelling the Relationship between Public and Private Fixed Capital Formation Using Co-integration Analysis: The Case of Pakistan 1964-2000
Abstract: This paper uses the Co-integrating VAR’s [Johansen (1988); Ericsson, et al.
(1998)] to examine the relationship between economic growth, public investment, and
private investment in the presence of unit roots. Exogeneity is not implicitly assumed
but explicitly tested for, and evidence of co-integration and feedback between public and
private investment leads to a model in the form of a parsimonious VAR. The analysis is
conducted using 37 years of annual data for Pakistan. The analysis suggests that public
investment has a positive impact on private investment, and that economic growth drives
both private and public investment as predicted by the accelerator-based models.
Journal: The Pakistan Development Review
Pages: 255-276
Volume: 41
Issue: 3
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume3/255-276.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:3:p:255-276
 
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Qayyum
Author-X-Name-First: Abdul
Author-X-Name-Last: Qayyum
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Title: Demand for Bank Lending by the Private Business Sector in Pakistan
Abstract: This study estimates the demand for bank lending by the private business sector in
Pakistan. For the purpose of analysis a three-step methodology is applied, that is,
univariate analysis, multivariate cointegration analysis, and error correction mechanism.
It is found that the individual series are difference stationary, and there is a long-run
stable relationship between the variables. The preferred model, obtained by the
application of the general-to-specific methodology is also found to be stable throughout
the study period. The study shows that the output of business sector is an important
determinant of the demand for bank credit in Pakistan, implying that to achieve the
objective of monetary policy the behaviour of the output of business sector must not be
ignored. Furthermore, the study shows that the rate of interest on bank advances is an
important determinant of the demand of credit by the business sector. It implies that
monetary authorities can move the flow of bank credit to the private sector while
changing the interest rate charged on bank lending. The analysis has important
implications a tight monetary policy implies a high rate of real interest; a high rate of
interest on bank lending negatively affects the demand for bank credit by the business
sector (and the investment), which in turn leads to low aggregate demand and lower
output. That is what has happened in Pakistan in the last decade.
Journal: The Pakistan Development Review
Pages: 149-159
Volume: 41
Issue: 2
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume2/149-159.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:2:p:149-159
 
Template-Type: ReDIF-Article 1.0
Author-Name: M. Arshad Mahmood
Author-X-Name-First: M. Arshad
Author-X-Name-Last: Mahmood
Author-Workplace-Name: Ministry of Population Welfare, Government of Pakistan, Islamabad.
Title: Determinants of Neonatal and Post-neonatal Mortality in Pakistan
Abstract: Ensuring the survival and well being of children is a concern of families,
communities and nations throughout the world. Since the turn of the 20th century
infant and child mortality in more developed countries has steadily declined and,
currently, has been reduced to almost minimal levels. In contrast, although infant
and child mortality has declined in the past three decades in most less developed
countries, the pace of change and the magnitude of improvement vary considerably
from one country to another.
The inverse relationship between socio-economic variables of the parents and
infant and child mortality is well established by several studies [Muhuri (1995);
Forste (1994); Hobcraft, et al. (1984); Caldwell (1979); Sathar (1985, 1987)] and it
holds true irrespective of the overall level of mortality in the national populations
[Ruzicka (1989)]. The influence of parental education on infant and child health and
mortality has proved to be universally significant [Bicego and Boerma (1993);
Caldwell, et al. (1990)]. The father’s education, mother’s education and their work
status each have independent effects upon child survival in developing countries
[Sandiford, et al. (1995); Forste (1994); Caldwell, et al. (1983)]. Economic
conditions of the household also help in explaining the variation in infant and child
mortality. The nature of housing, diet, access to and availability of water and sanitary
conditions as well as medical attention all depend on the economic conditions of the
household. For example, poor families may reside in crowded, unhygienic housing
and, thus, suffer from infectious disease associated with inadequate and
contaminated water supplies and with poor sanitation [Esrey and Habicht (1986)].
Maternal factors, which are biological attributes of birth, such as the age of
mother at the time of childbirth, birth order and birth interval [Forste (1994);
Rutstein (1984)], have significant effects on child survival.
Journal: The Pakistan Development Review
Pages: 723-744
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/723-744.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:723-744
 
Template-Type: ReDIF-Article 1.0
Author-Name: Pervez Tahir
Author-X-Name-First: Pervez
Author-X-Name-Last: Tahir
Author-Workplace-Name: Planning Commission, Government of Pakistan, Islamabad.
Title: Development Priorities of the Founding Father of Pakistan
Abstract: A close reading of the speeches and statements of the founding father of
Pakistan, Quaid-i-Azam Muhammad Ali Jinnah, brings forth a striking consistency
of understanding and approach towards priorities that the nation must determine to
move steadily on the road to progress and development. These priorities were—in
that order—education, industrial development and defence. Political historians
generally present descriptive analyses of what appear to be radically different phases
of the Quaid’s passage to lead the nation to its destiny—freedom. But at no point in
any phase does one come across a weakening of resolve to advocate the priorities of
Education, Industry and Defence—EID, for short. No better acronym of happiness
would be possible for the Muslims of British India, EID being happiness and
progress for them literally as well as religiously. After the adoption of the Pakistan
Resolution in March 1940, the Quaid reiterated these priorities time and again. There
is a noticeable accent in his speeches to specify the ramifications of these three
pillars of progress.
The most succinct statement of priorities came in March 1941. While
addressing the Pakistan Session of Punjab Muslim Students Federation, the Quaid
said “There are at least three main pillars which go to make a nation worthy of
possessing a territory and running the government……..One is education. . . . Next,
no nation and no people can ever do anything very much without making themselves
economically powerful in commerce, trade and industry. And lastly, when you have
got that light of knowledge by means of education and when you have made
yourselves strong economically and industrially, then you have got to prepare
yourselves for your defence against external aggression and to maintain internal
security”.
Journal: The Pakistan Development Review
Pages: 991-1010
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/991-1010.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:991-1010
 
Template-Type: ReDIF-Article 1.0
Author-Name: M. Azeem Khan
Author-X-Name-First: M.
Author-X-Name-Last: Azeem Khan
Author-Workplace-Name: National Agricultural Research Centre, Islamabad.
Author-Name: Muhammad Iqbal
Author-X-Name-First: Muhammad
Author-X-Name-Last: Iqbal
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Author-Name: Iftikhar Ahmad
Author-X-Name-First: Iftikhar
Author-X-Name-Last: Ahmad
Author-Workplace-Name: National Agricultural Research Centre, Islamabad.
Author-Name: Manzoor H. Soomro
Author-X-Name-First: Manzoor
Author-X-Name-Last: H. Soomro
Author-Workplace-Name: National Agricultural Research Centre, Islamabad.
Title: Economic Evaluation of Pesticide Use Externalities in the Cotton Zones of Punjab, Pakistan
Abstract: At the inception of Pakistan in 1947, there was practically no plant protection
service in the country and economic soundness of plant protection measures was not
even realized for a long time. The use of chemicals as preventive measures to reduce
losses by insects and diseases was almost non-existent during 1960s. However, the
“grow more” pressure rendered the traditional methods insufficient, to control the ever
increasing pest problem from 1970s onwards. Consumption of pesticides in Pakistan
has increased from 665 metric tonnes (MT) in 1980 (when subsidy was withdrawn) to
69897 MT in 2002. This colossal increase in pesticide consumption has not led
necessarily to an increase in the yield of crops, as demonstrated by Poswal and
Williamson (1998) and Ahmad and Poswal (2000). This indiscriminate use of pesticides
has destroyed the bio-control agents in the agro-ecosystems and the populations of
natural enemies of the insects and pests have declined up to 90 percent during the last
decade (of the past century) especially, in cotton growing areas of the country [Hasnain
(1999)].
The farmers are mainly concerned about the private cost of pesticide they have to
incur to achieve desirable outputs and are least concerned about the undesirable byproducts
of their production processes. The pressure to maximize output is enormous
especially, on low-income resource-poor small farms and the tenants.
Journal: The Pakistan Development Review
Pages: 683-698
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/683-698.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:683-698
 
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammed Nishat
Author-X-Name-First: Mohammed
Author-X-Name-Last: Nishat
Author-Workplace-Name: Department of Finance and Economics, Institute of Business Administration, Karachi.
Title: Experience of Equity-based Islamic Shares in Pakistan
Abstract: Modarabah and leasing stocks, which are listed on the Karachi Stock
Exchange (KSE) since 1985, operate on the Islamic concept of financing under a
well defined contractual framework supervised by the State Bank of Pakistan (SBP).
The Islamic stocks had mushroom growth during the first sub-period of reforms1 and
were exempted from various taxes during the initial 3 years of their operation. For
investors these shares were a very attractive opportunity to build a quality portfolio
and earn high returns. Due to bureaucratic and non-professional approach of banks
in Pakistan these firms became popular alternatives lenders to medium and small
sized business borrowers. The turn around time and efficient handling of the
proposals made them more attractive.
Practically all these Islamic firms in Pakistan are undertaking financing
activities on a mark-up basis, rather than profit and loss sharing. Under the mark-up
system the return is predetermined and their risks are minimised. These Islamic
stocks are operated similar to other firms that do not work on Islamic principles. In
the case of Modarabah, the predetermined rate of return and even the agreed ratio of
profit shares when calculated, the market rate of interest with other characteristics of
party in contract are also taken into consideration [Khan (1987, 1989); Saeed
(1996)]. The flurry of interest in floating Modarabahs was in part explained by the
higher return to investors, and that when the provisions permitting tax exemptions
Journal: The Pakistan Development Review
Pages: 583-608
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/583-608.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:583-608
 
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmood Ul Hassan
Author-X-Name-First: Mehmood Ul
Author-X-Name-Last: Hassan
Author-Workplace-Name: Central Asia Sub-Office of the International Water Management Institute (IWMI), Lahore.
Title: Financial Capacity and Willingness of Farmers to pay for Irrigation Services in the Post-reform Scenario in Pakistan: Two Case Studies
Abstract: To eliminate the subsidy on the canal irrigation system, the Government of Pakistan
has decided to reform the management, intending to make it more efficient, equitable,
transparent, and able to take care of the sustainability of the world’s largest contiguous
irrigation network. The water users are being entrusted with greater role in the
management through the formation of Farmers’ Organisations (FOs) to operate and
maintain secondary canals and pay for full cost of water delivery. Ultimate payer will be
the farmer. The economic viability of the reforms, therefore, much depends on farmers’
ability and willingness to pay for the cost of irrigation water delivery, which is expected
to rise. This paper estimates financial liabilities of the farmers in the post-reform
scenario, and assesses their capacity and willingness to pay for liabilities in the provinces
of Punjab and Sindh. One distributary in each of the two provinces is studied as the
reference distributary, where FOs have already been formed. The cost of desired level of
operation and maintenance levels are worked out using secondary data for 1997-98. With
these costs, the water users in the Punjab and Sindh provinces need to pay Rs 333 and Rs
373 per ha for their water service, respectively. The estimated O&M costs form about
5.4 and 3 percent of production costs and 3.8 and 3.5 percent of the net income in the
Punjab and Sindh provinces respectively. The farmers’ net income from crop enterprise is
higher than the cost of water. Thus, an average farmer has the potential to pay for water.
Recent experience of Hakra 4-R Distributary FO suggests that the farmers are also
willing to pay for water service, if they are organised properly.
Journal: The Pakistan Development Review
Pages: 49-67
Volume: 41
Issue: 1
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume1/49-67.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:1:p:49-67
 
Template-Type:ReDIF-Article 1.0
Author-Name: Mohsin Hasnain Ahmad
Author-X-Name-First: Mohsin
Author-X-Name-Last: Hasnain Ahmad
Author-Workplace-Name: Applied Economics Research Centre, University of Karachi.
Author-Name: Qazi Masood Ahmed
Author-X-Name-First: Qazi Masood
Author-X-Name-Last: Ahmed
Author-Workplace-Name: Institute of Business Administration, Karachi and Social Policy and Development Centre, Karachi.
Title: Foreign Capital Inflows and Domestic Savings in Pakistan: Cointegration Techniques and Error Correction Modelling
Abstract: The various form of inflow of foreign capital (loans, FDI, grant and portfolio)
was welcome in developing countries to bridge the gap between domestic saving and
domestic investment and therefore, to accelerate growth [Chenery and Strout
(1966)]. Some other have been challenged the traditional view that foreign aid
impedes domestic savings growth and mobilisation and have economic growth.1
Much attention have been paid in past 30 years, relationship between foreign
capital flows and domestic saving, the main purpose of these studies have been
determined whether in less developed countries foreign capital inflow and domestic
saving are complementary or substitute. However, there is a controversy at
theoretical and empirical levels, over the effects of foreign capital on both economic
growth and national saving.
A number of studies in Pakistan have been conducted during the early 1990s
to examine the relationship between saving and foreign capital inflow.2
All studies shows the inverse relationship between foreign capital inflows3
(aggregate level) and saving rate, but the impact of FCI at disaggregate levels (loans,
grants, FDI) on saving rate show different magnitude and signs, similarly impact of
FCI on decomposition of saving rate (Public, private, household, corporate) also
have different magnitude and sign.
However, the most important problem associated with previous studies is that
these are based on the assumption that the time series data that are being used are
stationary.
Journal: The Pakistan Development Review
Pages: 825-836
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/825-836.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:825-836
 
Template-Type: ReDIF-Article 1.0
Author-Name: Muhammad Sabir
Author-X-Name-First: Muhammad
Author-X-Name-Last: Sabir
Author-Workplace-Name: Social Policy and Development Centre (SPDC).
Title: Gender and Public Spending on Education in Pakistan: A Case Study of Disaggregated Benefit Incidence
Abstract: It is generally believed that education is one of the basic rights of every human
being, irrespective of sex, age, creed, religion, etc. Moreover, the target of universal
primary education cannot be achieved without female access to educational
opportunities, which contains several external benefits. In addition, access to
educational opportunities assumes prime importance for empowerment of women.
However, inequalities in access to education between males and females can be found
in many countries across the world including Pakistan. According to conventional
wisdom, a combination of cultural, social, and economic factors are responsible for
placing young girls and women at a serious disadvantage vis-a-vis access to school
and the prospect of completing their education. This disadvantage can be altered
through public policies including gender sensitive public spending on education.
The above assertion about the role of public policy is based on the theory of
public finance1, which demonstrates that public expenditure on education can affect
the population in a number of ways, which has significant gender dimensions. For
example, government spending on primary education is likely to generate more
income for women than spending on universities, for the simple reason that there are
relatively more women primary school teachers than women university lecturers.
Moreover, these expenditures provide subsidized educational services, which is a
form of “in kind transfers”. These “in-kind transfers” improve the current well-being
of the recipients, and enhance their longer-run income-earning potential. They can be
considered as both current and capital transfers to the recipients, and therefore can be
termed as the “benefit incidence” of public spending. The main concern of this paper
is to assess the gender dimension of the benefitincidence”. The tudy has two basic
objectives. First and foremost, it aims to investigate which income group actually
benefits from the government’s subsidized.
Journal: The Pakistan Development Review
Pages: 477-493
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/477-493.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:477-493
 
Template-Type: ReDIF-Article 1.0
Author-Name: Zareen F. Naqvi
Author-X-Name-First: Zareen
Author-X-Name-Last: F. Naqvi
Author-Workplace-Name: World Bank, Islamabad.
Author-Name: Lubna Shahnaz
Author-X-Name-First: Lubna
Author-X-Name-Last: Shahnaz
Author-Workplace-Name: Economics Department at Quaid-i-Azam University, Islamabad.
Title: How Do Women Decide to Work in Pakistan?
Abstract: The incidence of women labour force participation is very low in Pakistan.
According to the Labour Force Survey, 1999-2000 female participation rate was
merely 14 percent of the total labour force. Even though average annual growth rate
of female labour force participation has been increasing slightly in Pakistan; it was 4
percent in 1980-99 and has gone up to 5.1 percent during 1995-98,1 however, this rate
is still very low as compared to the other South Asian countries—42 percent in
Bangladesh, 41 percent in Nepal, 32 percent in India and Bhutan, 37 percent in Sri
Lanka [World Bank (2002)].
This paper is an attempt to identify household related factors that lead to
women participation in the economic activities. This issue has been taken up in a
number of other studies.2 The innovative aspect of this paper is that it relates women’s
decision to participate in economic activities with their empowerment—who makes
the decision to participate in the labour force—whether it is the women themselves or
others. We would like to state at the very onset that this paper is a first cut to explore
the issues of women’s participation in economic activities and their and empowerment.
We hope to get feedback in the conference to improve the technical aspects of this
paper and explore other aspects of this issue.
Some key empirical findings of this paper are that the women economic
participation is significantly influenced by factors such as their age, education and marital
status. The employment status of the head of the household (generally a male), presence
of male member, and children of ages 0–5 are also important variables that significantly
affect women’s participation in economic activities. We identified marital status,
education level, family size, household’s financial status and area of residence as the main
causal factors behind women making their own decisions about paid employment.
Journal: The Pakistan Development Review
Pages: 495-513
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/495-513.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:495-513
 
Template-Type: ReDIF-Article 1.0
Author-Name: Bushra Hamid
Author-X-Name-First: Bushra
Author-X-Name-Last: Hamid
Author-Workplace-Name: Institute of Management Studies, University of Peshawar.
Title: Institutional Approach to E-commerce: An Integrated Framework for Pakistan
Abstract: Pakistan needs to knit itself into global information economy in order to ensure
economic development. E-commerce is the essential tool through which this objective
can be met. Currently, the economy is in a transition, the span of which needs to be
shortened in order to meet the global challenges in the coming years. An institutional
approach is essential to develop e-commerce. An appropriate institutional framework
will shorten the time span of the transition period and will ensure a smooth transition to
information economy. It will provide an effective and efficient use of the existing
institutional infrastructure and development of new institutions. It calls for close
coordination between the government, industry, and international organisations.
Journal: The Pakistan Development Review
Pages: 179-192
Volume: 41
Issue: 2
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume2/179-192.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:2:p:179-192
 
Template-Type: ReDIF-Article 1.0
Author-Name: Chaudhary Mohammad Irfan
Author-X-Name-First: Chaudhary Mohammad
Author-X-Name-Last: Irfan
Author-Workplace-Name: Applied Economics Research Centre, University of Karachi.
Author-Name: Mohammed Nishat
Author-X-Name-First: Mohammed
Author-X-Name-Last: Nishat
Author-Workplace-Name: Department of Economics and Finance, Institute of Business Administration, Karachi.
Title: Key Fundamental Factors and Long-run Price Changes in an Emerging Market-A Case Study of Karachi Stock Exchange (KSE)
Abstract: Share prices are the most important indicator readily available to the investors
for their decision to invest or not in a particular share. Theories suggest that share
price changes are associated with changes in fundamental variables which are
relevant for share valuation like payout ratio, dividend yield, capital structure,
earnings size of the firm and its growth, [Wilcox (1984); Rappoport (1986); Downs
(1991)]. Linter (1956) linked dividend changes to earnings while Shapiro valuation
model (1962) showed dividend streams discounted by the difference in discount rate
and growth in dividend should be equal to share price. This predicts direct relation
between pay out ratio and the price-earning multiple. Conversely it means that there
is an inverse relation between pay out ratio and share price changes. Several eventbased
studies established direct relation between share price changes and either
earnings or dividend changes [Ball and Brown (1968); Baskin (1989)]. Sharpe
(1964) and Hamada (1972) suggested direct relation between share price changes
and capital structure. Beaver, Kettler and Sholes (1970) showed that firms appear to
pay less of their earnings if they have higher earning volatility. This suggests payout
ratio as relevant factor for share price changes. Investigations of share price changes
appear to yield evidence that changes in fundamental variable(s) should jointly bring
about changes in share prices both in developed and emerging markets. However, the
actual fundamental factors found to be relevant may vary from market to market. For
example, changes in asset growth of firms are significant in the case of Japanese
shares while earnings appear to be universally a relevant factor [Ariff, et al. (1994)].
However, it is widely agreed that a set of fundamental variables as suggested by
individual theories is no doubt relevant as possible factors affecting share price
changes in the short and the long-run.
Journal: The Pakistan Development Review
Pages: 517-533
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/517-533.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:517-533
 
Template-Type:ReDIF-Article 1.0
Author-Name: G. M. Arif
Author-X-Name-First: G. M.
Author-X-Name-Last: Arif
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Author-Name: M. F. Kiani
Author-X-Name-First: M. F.
Author-X-Name-Last: Kiani
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Author-Name: Khalid H. Sheikh
Author-X-Name-First: Khalid
Author-X-Name-Last: H. Sheikh
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Title: Labour Market Dynamics in Pakistan: Evidence from the Longitudinal Data
Abstract: The bulk of research on labour market conditions in Pakistan has concentrated
on the economic activity rate, the number of employed persons, or the
unemployment rate at a particular point in time. These stock measures of labour
market situation are useful from a policy viewpoint as they give a broad indication of
the dimension of the problem. For example, the recent labour force surveys show an
increase in the level of open unemployment from 5.9 percent in 1997-98 to 7.8
percent in 1999-2000 [Pakistan (2001)]. There is also an emerging consensus that
during the 1990s poverty has increased at the national as well as for rural and urban
areas of the country [Qureshi and Arif (2001)]. Labour market is considered as the
main route for establishing the link between macro policies, the resulting GDP
growth and poverty alleviation [Rahman (2002)]. Interim Poverty Reduction
Strategy Paper (IPRSP) and other development plans have suggested various targets
of employment creation for poverty reduction.
The stock measures of labour market conditions, such as unemployment rate,
are considered to be inadequate from the viewpoint of developing appropriate policy
responses. There is a need to gain further insights by examining the structure of
labour market in terms of its dynamic components: these being the turnover of
persons into and out of the labour force and turnover into and out of employment
and unemployment pools
Journal: The Pakistan Development Review
Pages: 701-720
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/701-720.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:701-720
 
Template-Type: ReDIF-Article 1.0
Author-Name: Noriyuki Suzuki
Author-X-Name-First: Noriyuki
Author-X-Name-Last: Suzuki
Author-Workplace-Name: Institutional and External Relations, International Confederation of free Trade Unions-Asian and Pacific Regional Organization (ICFTU-APRO), Singapore.
Author-Name: Sabur Ghayur
Author-X-Name-First: Sabur
Author-X-Name-Last: Ghayur
Author-Workplace-Name: Institutional and External Relations, International Confederation of free Trade Unions-Asian and Pacific Regional Organization (ICFTU-APRO), Singapore.
Title:Making Globalisation Inclusive of People: A Trade Union Prespective
Abstract: The greatest tragedy is to treat the unequal as equal”, says Aristotle. In a different
perspective, similar concerns have found an echo centuries later—” the free play of
market forces between unequal trading partners would only punish poorer commodity
exporters at the same time as it brings advantages to the rich industrial countries”.1 New
modalities of participation for developing countries in the trading system were suggested
decades ago to attack the persistent trade imbalance and to create essential external
conditions for accelerating the rate of economic growth. These included: (1) guaranteeing
price stabilisation and improving market access for primary exports; (2) allowing greater
policy space to develop local industries and reducing barriers to their exports; (3)
establishing more appropriate terms of accession to the multilateral system, and (4)
reducing the burden of debt-servicing. The developments as unfolded over the years, and
more so since 1990s, are found as largely drifting away from these assertions of yester
years. Market access to the agricultural products still has to materialise. Greater policy
space to developing countries almost stands abandoned. Debt burden of the developing
poor countries, the HIPC initiative notwithstanding, remains at volatile level.
Journal: The Pakistan Development Review
Pages: 357-387
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/357-387.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:357-387
 
Template-Type: ReDIF-Article 1.0
Author-Name: Zahir Shah
Author-X-Name-First: Zahir
Author-X-Name-Last: Shah
Author-Workplace-Name: Government College of Commerce, Mansehra, N.W.F.P.
Author-Name: Qazi Masood Ahmed
Author-X-Name-First: Qazi Masood
Author-X-Name-Last: Ahmed
Author-Workplace-Name: Institute of Business Administration, Karachi. and Social Policy and Development Centre (SPDC), Karachi.
Title: Measurement of Cost of Capital for Foreign Direct Investment in Pakistan: A Neoclassical Approach
Abstract: Capital can move inside and outside the boundaries of a country in search of
the highest financial return and greatest security for its operation in the host regions.
High return from investment is linked with the incentive mechanism offered by the
host country in attracting FDI to fill the investment gap and diffusion of other skills.
To attract the foreign investors, the successive governments in Pakistan,
offered various investment incentives in the form of tax concessions (tax
expenditure) and direct expenditure on infrastructural provisions. The taxation policy
of Pakistan has great relevance for Transnational Corporation’s (TNC) involvement
in production activities. It is perceived to be a significantly influential factor in
determining the inflow of foreign investment through the cost of capital and the
resulting after tax return.
Stimulating foreign investment, mainly through the large TNCs, requires cost
minimising devices, which are reflected in fixed cost of a long-term investment
project. The cost of fixed assets in such projects depends upon the rate of return, the
price of capital goods and, most importantly, the tax treatment of generated income.
Foreign investors are generally pursuing two sets of objectives that are related to
their decision to invest. First, they prefer for locational advantages like market size,
access to raw material and the availability of skilled labour. Secondly, they have
their concern with the incentives offered by the host countries through their fiscal
policies. These policies attract the investment considerations of the foreign investors.
TNCs search the second set of objectives only if the first set is fulfilled.
This paper uses the Jorgenson’s (1963, 1967) Neoclassical Investment
Model to explore the cost implications that are concerned with the importing
capital and the return after being treated for fiscal provisions.
Journal: The Pakistan Development Review
Pages: 807-823
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/807-823.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:807-823
 
Template-Type: ReDIF-Article 1.0
Author-Name: Herbert Schui
Author-X-Name-First: Herbert
Author-X-Name-Last: Schui
Author-Workplace-Name: Department of Economics, University of Economics and Politics, Hamburg, Germany.
Title: Missing Basic Issues on Credit Money: On the Role of Money in Removing World-wide Growth Barriers
Abstract: Kalecki identifies demand restraint in industrialised and capital restraint in
developing countries as the decisive barriers of world-wide growth. Thus, beyond others,
it is a matter of financing to foster employment in both types of countries: a rational use
of credit money on the international scale could finance additional imports of capital
goods by developing countries, whereas industrialised countries could increase their
output by trade balance surpluses. This question has been largely debated under various
aspects, from the Stamp plan (1958) to the programme of the Commission on
International Development Issues (1980). Even if this debate has been superseded by
questions of the process and the institutions by which capital is allocated, of the
appropriate business management and screening and monitoring, declining growth rates
in the last twenty years show that the basic issue of production and distribution of
additional real capital remains at stake. Besides institutional obstacles, capital restraint
still remains the main bottleneck for development. Basic questions as how to create and
use world-wide credit money has to be reconsidered instead of taking backfiring actions
to manage actual financial crises. Additional international money supply by planned trade
balance deficits of developing countries contributes to world-wide growth, whereas trade
balance deficits of the United States are likely to prepare the next financial crises by an
excessively increasing dollar supply. A revival of the debate of how to link SDR’s and
development financing surely requires to tackle a great number of additional questions,
such as how to allocate trade balance deficits and surpluses and how to ensure the
acceptance of this world credit money. All in all, it would be a serious attempt to break
the money away from the handing down tradition and to transform it into a rationale by
abstract reasons and well-founded instrument for economic development.
Journal: The Pakistan Development Review
Pages: 423-442
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/423-442.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:423-442
 
Template-Type: ReDIF-Article 1.0
Author-Name: Abdul Qayyum
Author-X-Name-First: Abdul
Author-X-Name-Last: Qayyum
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Title: Monetary Conditions Index: A Composite Measure of Monetary Policy in Pakistan
Abstract: Accurate measures of the size and direction of changes in monetary policy are
very important. A number of variables/indicators have been used as a measure of the
stance of monetary policy the world over. These include growth rates of monetary
aggregates and credit aggregates, short-term interest rate as used by Sims (1992),
index of minutes of Federal Open Market Committee (FOMC), as suggested by
Friedman and Schwartz (1963) and reintroduced by Romer and Romer (1989),
monetary policy index constructed by employing Vector Autoregression (VAR)
estimation technique with prior information from Central Bank such as Bernanke
and Blinder (1992) and Bernanke and Mihov (1998), and Monetary Conditions
Index (MCI)—which is the focus of this paper—constructed by and used by Bank of
Canada [Freedman (1995)], taking into consideration the interest rate and exchange
rate channel of monetary policy transmission mechanism in a small open economy.
In case of open economy it is assumed that the monetary policy affects the
economy and the prime objective of monetary policy, rate of inflation, through two
important transmission mechanisms. These transmission channels are; interest rate
channel and exchange rate channel. The working of the first channel is that the
interest rate influences the level of expenditures, investment and subsequently
domestic demand. The change in official interest rate effects the market rates of
interest both short term as well as long term interest rates. This change in market
rates of interest is transmitted to the bank lending rates and saving rates. The change
in saving rate effects the spending behaviour of individuals (consumption) whereas
the change in bank lending rate effects the investment behaviour of firms
(investment). The change in aggregate consumption and investment has direct link to
the gross domestic product (GDP).
Journal: The Pakistan Development Review
Pages: 551-566
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/551-566.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:551-566
 
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsin S. Khan
Author-X-Name-First: Mohsin
Author-X-Name-Last: S. Khan
Author-Workplace-Name: IMF Institute, International Monetary Fund, Washington, D. C.
Title: New Issues in Bank Regulation
Abstract: Deregulation, technology, and financial innovation are transforming banking.
Indeed, banking is no longer the business it was even a few decades ago. The way
banking services are provided has changed dramatically, and in many countries they are
even offered by institutions that are quite different from traditional banks. As the old
institutional demarcations become increasingly irrelevant, increased competition from
other intermediaries has led to a decline in traditional banking in which banks took
deposits and made loans that stayed on their books to maturity. Banks thus have been
moving rapidly into new areas of business.
In this evolving financial environment, the international banking community and
the Basel Committee on Banking Supervision of the Bank for International Settlements
(BIS) are currently wrestling with pinning down an appropriate regulatory framework.
The regulatory response to these changes has been a move away from the increasingly
ineffective command-and-control regulations to greater reliance on assessing the internal
risk-management systems, the supervision of banks, and more effective market
discipline. In the language of the New Basel Accord, this represents a shift in emphasis
away from capital-adequacy rules toward supervision and market discipline.
This paper provides an overview of the profound and rapid changes brought about
by technology and deregulation, and discusses the hurdles that will have to be negotiated
for putting in place a suitable regulatory framework. On the one hand, inadequate
resolution of these challenges will create the wrong incentives and lead to banking
fragility. On the other hand, overregulation carries the danger that it will retard the
development of national financial systems, hinder the best use of available domestic
savings, prevent countries from accessing international capital, and ultimately lead to
slower growth. Developed financial systems are being challenged by the shift in
regulatory focus, and the definition and implementation of appropriate regulatory
standards is encountering substantial difficulties. Finding the right balance between
regulation, supervision, and reliance on market discipline is likely to be even more
difficult in developing and transition countries.
Journal: The Pakistan Development Review
Pages: 333-356
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/333-356.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:333-356
 
Template-Type: ReDIF-Article 1.0
Author-Name: Aisha Ghaus Pasha
Author-X-Name-First: Aisha
Author-X-Name-Last: Ghaus Pasha
Author-Workplace-Name: Social Policy and Development Centre, Karachi.
Author-Name: Muhammad Asif Iqbal
Author-X-Name-First: Muhammad Asif
Author-X-Name-Last: Iqbal
Author-Workplace-Name: Social Policy and Development Centre, Karachi.
Title: Non-profit Sector in Pakistan: Government Policy and Future Issues
Abstract: The non-profit sector remains relatively small and underdeveloped in
Pakistan. During the decade of the 1990s, it has demonstrated some nascent growth
resulting from a number of favourable factors like the return to democracy, the
growing push towards deregulation and privatisation, the process of globalisation
and the emergence of international coalitions of civil society and the deterioration in
the financial position of governments which has limited the public provision of
social services. The objective of this paper is to examine the role played by
government policy in fostering this process of growth of the non-profit sector of
Pakistan and to review the key issues faced by the sector at this time.
Of particular concern are, first, the overall posture of the government towards
the non-profit sector, the types of policies in place, and the underlying philosophy or
principles that guide policy-making. Second, the forms of support to the non-profit
sector by different levels of government. Third, the posture of international
organisations and supranational governments towards local non-profit organisations
and, forth, the major issues facing the non-profit sector at the present time.
The objective of this paper is to analyse government policy towards the nonprofit
sector in Pakistan over the last two decades and review some major issues
facing the sector at the present time. It is important to note that analysis presented
here does not cover the period of current government.
Journal: The Pakistan Development Review
Pages: 879-908
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/879-908.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:879-908
 
Template-Type: ReDIF-Article 1.0
Author-Name: R. I. Udegbunam
Author-X-Name-First: R. I.
Author-X-Name-Last: Udegbunam
Author-Workplace-Name: Department of Economics and Statistics, Faculty of Social Sciences, University of Benin, Nigeria.
Title: Openness, Stock Market Development, and Industrial Growth in Nigeria
Abstract: In recent years the Nigerian economy has been moving towards increased
liberalisation, greater openness, and greater financial development. This paper examines the
implications of these developments for industrial growth in Nigeria. A simple model, which
relates industrial output growth to openness, stock market development, and a battery of
control variables, is specified and estimated, using annual data covering the period 1970–
1997. The empirical evidence strongly suggests that openness to world trade and stock
market development are among the key determinants of industrial output growth in Nigeria.
The other important factors are human capital input, non-military expenditure, gross
domestic product (GDP), which reflects the size of physical capital, and inflation.
Journal: The Pakistan Development Review
Pages: 69-92
Volume: 41
Issue: 1
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume1/69-92.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:1:p:69-92
 
Template-Type: ReDIF-Article 1.0
Author-Name: Mehmood Ul Hassan
Author-X-Name-First: Mehmood Ul
Author-X-Name-Last: Hassan
Author-Workplace-Name: International Water Management Institute's Regional Office for Pakistan, Central Asia, and the Middle East.
Author-Name: Nazim Ali
Author-X-Name-First: Nazim
Author-X-Name-Last: Ali
Author-Workplace-Name: International Water Management Institute's Regional Office for Pakistan, Central Asia, and the Middle East.
Title: Potential for Blue-Gray Water Trade-offs for Irrigation in Small Towns of Pakistan: A Case Study of Farmers' Costs and Benefits in Haroonabad
Abstract: The growing demand and the competition for fresh water in various sectors suggest
that the irrigated agriculture will have to release freshwater for more important and
valuable uses. This implies that other options would need to be identified to meet water
demands for agriculture. Meeting irrigation requirements through non-conventional water
sources is one of the options for agricultural uses. Gray water use for irrigation, a
pervasive practice in urban and peri-urban areas of many developing countries, could be
one of the solutions. The debate on wastewater irrigation from an environmental point of
view is already on, focussing more on human and environmental “safety” aspects. The
“value” aspect of the wastewater irrigation remains neglected, however. The irrigation
users of untreated wastewater in many parts of the world had already traded off and
revealed their preference for gray over blue water decades ago, when the water supply
systems in towns and cities were set up. Why they would do it despite the high
environmental and health risks associated with its use needs an answer. The paper
documents the costs and benefits of wastewater irrigation from users’ point of view, and
assesses the potential for real blue water savings in a small town setting in the southern
Punjab, Pakistan. The data presented in the paper suggest that wastewater irrigation does
lead to blue water savings, and it is profitable for farmers. While its potential is not fully
exploited, more focus on appropriate approaches to physical and institutional aspects of
wastewater disposal planning and management could make wastewater irrigation more
productive, profitable, and safe for individuals as well as for the society as a whole.
Journal: The Pakistan Development Review
Pages: 161-177
Volume: 41
Issue: 2
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume2/161-177.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:2:p:161-177
 
Template-Type: ReDIF-Article 1.0
Author-Name: Pervez Tahir
Author-X-Name-First: Pervez
Author-X-Name-Last: Tahir
Author-Workplace-Name: Planning Commission, Government of Pakistan, Islamabad.
Title: Poverty, Feudalism, and Land Reform—The Continued Relevance of Iqbal
Abstract: After half a century of development experience, one-third of the population of
Pakistan today is condemned to struggle below the poverty line, howsoever defined.
In absolute terms, this size of the population of the poor is larger than the total
population of [West] Pakistan at the time of independence in 1947. The incidence of
rural poverty is greater than in urban areas.
Iqbal died nine years before the state of Pakistan was established in 1947 and
2 years before the adoption of the Lahore Resolution in 1940. Territorially, the
present-day Pakistan is closer to Iqbal’s idea of the Muslim State presented in his
famous presidential address at the annual session of the Muslim League held at
Allahabad in 1930: “I would like to see the Punjab, North-West Frontier Province,
Sindh and Balochistan amalgamated into a single State” [Brelvi (1977), p. 63]. The
same, however, would be hard to say in regard to his vision of economy and society.
Poverty as a problem, feudalism as the cause and land reform as a solution formed
the most important part of this vision.
Why did the Muslims of India require a state of their own? Iqbal elaborated
this point later in a letter written to the Quaid-i-Azam in May 1937. He wrote: “The
problem of bread is becoming more and more acute. The Muslim has begun to feel
that he has been going down and down during the last 200 years. Ordinarily he
believes that his poverty is due to Hindu money-lending or capitalism. The
perception that it is equally due to foreign rule has not yet fully come to him. But it is
bound to come. The atheistic socialism of Jawaharlal is not likely to receive much
response from the Muslims. The question therefore is: how is it possible to solve the
problem of Muslim poverty? And the whole future of the League depends on the
League’s activity to solve this question. If the League can give no such promises I
am sure that Muslim masses will remain indifferent to it as before. Happily there is a
solution in the enforcement of the Law of Islam and its further development in the
light of modern ideas.
Journal: The Pakistan Development Review
Pages: 967-972
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/967-972.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:967-972
 
Template-Type: ReDIF-Article 1.0
Author-Name: Shamim A. Sahibzada
Author-X-Name-First: Shamim A.
Author-X-Name-Last: Sahibzada
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Title: Pricing Irrigation Water in Pakistan: An Evaluation of Available Options
Abstract: Irrigation water shortages have lately been a main area of concern for policymakers
and planners in Pakistan. Current literature on the country’s water resources
predicts an alarming situation regarding the availability of irrigation water in the future
due to declining water tables and serious financial, environmental, and social constraints
of developing big storage reservoirs. Since there is little room to augment water supplies
by building new dams, the existing supply-driven surface irrigation system needs to be
replaced by a demand-based system with special focus on water use efficiency through
the introduction of an appropriate water pricing system. The present study aims to
evaluate several alternative water pricing systems in the search for choosing one that will
ensure efficient use of irrigation water in Pakistan. A related objective is to test the extent
of sensitivity of the demand for irrigation water to a change in alternative water prices. A
major conclusion that emerges from this research is that irrigation water shortages are the
result of the inflexibility of the present irrigation water supply system for agricultural use
and have little to do with the existing water pricing practice in the country. Furthermore,
the results of our water price simulations exercise confirm the general perception that
demand for irrigation water is less sensitive to changes in alternative irrigation water
prices. Two findings from the pricing policy perspective are: (i) irrigation water is not
available in adequate quantity to farmers in the nine sub-districts surveyed at almost all of
the alternative prices in Pakistan’s irrigated agriculture sector since the predicted water
usage at all prices is greater than the actual usage for all districts; and (ii) our empirical
analysis indicates significant inefficiency of resource allocation in respect of irrigation
water as shown by its positively large marginal value product to opportunity cost ratio.
Journal: The Pakistan Development Review
Pages: 209-241
Volume: 41
Issue: 3
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume3/209-241.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:3:p:209-241
 
Template-Type: ReDIF-Article 1.0
Author-Name: T. N. Srinivasan
Author-X-Name-First: T. N.
Author-X-Name-Last: Srinivasan
Author-Workplace-Name: Yale University, USA.
Title: Privatisation, Regulation, and Competition in South Asia
Abstract: Privatisation has begun to accelerate in India and Pakistan. However, it is not clear
that a change in ownership per se will contribute significantly to a more rapid, efficient,
and equitable growth unless policies that ensure competition for these enterprises and
remove distortions in factor markets also are undertaken at the same time or prior to
privatisation. After a brief discussion of the transition from state-led development to more
market-oriented policies and gradual opening to world markets, this paper reviews some
of the analytical literature on privatisation and regulation. The translation of these
theories into concrete policy suggestions is difficult for countries such as Pakistan and
India, where many of the assumptions behind the theories do not hold. However, the
results of empirical studies on past privatisations around the world do hold lessons for
South Asia. Similarly, theories of regulation offer only broad recommendations, most
notably (for South Asia) that regulation is not the best way to redistribute resources. The
final section of the paper reviews India’s and Pakistan’s experience with privatisation
thus far. Attempted privatisation of electricity in India serves as an example of the need
for more attention to regulation, while the transfer of ownership has led to better service
at lower cost in the telecommunications sector. Pakistan’s privatisation programme
appears to have had similarly mixed results, though it is difficult to come to firm
conclusions with the evidence at hand.
Journal: The Pakistan Development Review
Pages: 389-422
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/389-422.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:389-422
 
Template-Type: ReDIF-Article 1.0
Author-Name: Mian Muhammad Javed
Author-X-Name-First: Mian Muhammad
Author-X-Name-Last: Javed
Author-Workplace-Name: Pakistan Electronic Media Regulatory Authority (PEMRA), Islamabad.
Title: Regulation, Competition, and Information
Abstract: You know it is very hard after the Governor, State Bank, to make a
presentation but I will try to do it in a very mundane way. You know the Regulatory
Bodies specially in the Economic Sector in recent times. There has been a sort of
resurgence, leaving aside the regulation of the financial sector, which has been doing
very well. Our old memory of regulation is not so pleasant. Long ago, there used to
be a transport Authority which used to dole out “Route Permits” as political favours,
and there was you know fixation of Bus Fares not always based on economic
considerations but based on arbitrariness. But luckily we have learnt a lot. First, we
learnt that it is good to deregulate and I think the primary purpose of the present
resurgence is to deregulate. You have a regulatory body to deregulate. Secondly as
the finance Minister said yesterday himself that this is a new paradigm. The
regulation now has a major ingredient of a development role and in Pakistan with the
combination of licencing as necessary part of regulation, you are very effective in
that role and it also genuinely provides an opportunity for a one window type of
operation where you give a permission and you facilitate the type approvals and then
you help them dealing with the local agencies. Although you have brief period for
evaluation but the preliminary perception is that they are fairing better than our
Industrial Development Corporations which were given the role to promote the
Private Sector.
Now in this regulatory field, the new entrant is the Pakistan Electronic Media
Regulatory Authority. I will present you some salient features how it works. I am not
raising any issues as such like an economist would do but my presentation will be
more informatic and tell you that in the new Regulatory regime in Pakistan, where is
the stress now. Focus on professionalism, transparency and community participation.
I will use the slides.
Journal: The Pakistan Development Review
Pages: 911-913
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/911-913.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:911-913
 
Template-Type: ReDIF-Article 1.0
Author-Name: A. R. Kemal
Author-X-Name-First: A. R.
Author-X-Name-Last: Kemal
Author-Workplace-Name: Pakistan Society of Development Economists
Title: Regulatory Framework in Pakistan
Abstract: Until the mid-1970s, governments all over the world (especially in the
developing economies), intervened in markets on the pretext of market failure arising
from externalities, decreasing cost industries, and equity considerations for
maximising social welfare. In Pakistan, where the private sector has played a
dominant role, except probably for the 1970s,1 private sector activities have all along
been regulated through various types of controls and regulations on entry and exit,
prices, credit, foreign exchange, imports, investments, etc. These regulations were
imposed with a view to ensuring that private sector allocations were in accordance
with the national priorities [see Pakistan (1983-84)]. However, the objectives were
rarely realised and, in fact, these regulations have been responsible for red-tapism
and corruption.
On the grounds of government failure, privatisation and deregulation policies
are being practised almost everywhere in the hope that they would help in efficient
allocation of resources and higher levels of productivity. Considerable regulatory
reforms have also been effected in Pakistan over the last two decades. Investment
and import licensing have been withdrawn, most of the foreign exchange restrictions
have been removed, capital market regulations have been simplified, price controls
have been lifted, and interest rates have been deregulated. However, there is
considerable room for further regulatory reforms. Similarly, various public
enterprises in the manufacturing and financial sectors have been privatised,
telecommunication, airlines, and energy firms have been partially divested, and the
government has an ambitious privatisation programme of divestiture in various other
fields. The main force behind the process of privatisation is the need to address the
problems of mismanagement of resources, overstaffing, inappropriate and costly
investments, poor quality of services, and heavy losses of various public enterprises.
Journal: The Pakistan Development Review
Pages: 319-332
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/319-332.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:319-332
 
Template-Type: ReDIF-Article 1.0
Author-Name: Boris E. Bravo-ureta
Author-X-Name-First: Boris E.
Author-X-Name-Last: Bravo-ureta
Author-Workplace-Name: Office of International Affairs, and University of Connecticut in Storrs.
Title:Research, Extension, and Information: Key Inputs in Agricultural Productivity Growth
Abstract: The objective of this paper is to examine how economists have perceived the
contributions of agriculture to the economic development process and then to present the
case for the critical role that research, extension, and information can play in agricultural
productivity growth and thus in economic development, particularly in low income
countries. After a brief presentation of the framework commonly used to examine
productivity growth, a distinction is made between technological change and technical
efficiency. This distinction is crucial for policy purposes because the major impetus
behind technological change are research and development, while education and
experience are critical to improving managerial capabilities to make efficient use of a
given technology. Empirical findings concerning the returns on agricultural research,
with special attention to studies that have focused on Pakistan, are discussed. The paper
then offers an overview of alternative methodologies available to measure technical
efficiency, summarises the empirical literature, and finally focuses on studies dealing
with Pakistani agriculture.
Once it is established that improvements in technical efficiency could contribute
significantly to increases in farm output and income, the discussion moves to some issues
that have implications for the measurement and potential improvement of farm
efficiency. An overview of a model of privatised extension services, currently being
applied in some Latin American countries and which could have some relevance to
conditions in Pakistan and elsewhere, is provided. The paper ends with the contention
that significant improvements are needed in the collection and organisation of farm
production data if we are to advance our understanding of the drivers of productivity
growth at the farm level
Journal: The Pakistan Development Review
Pages: 443-473
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/443-473.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:443-473
 
Template-Type: ReDIF-Article 1.0
Author-Name: Zafar Mueen Nasir
Author-X-Name-First: Zafar Mueen
Author-X-Name-Last: Nasir
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Title: Returns to Human Capital in Pakistan: A Gender Disaggregated Analysis
Abstract: The impact of human capital variables on the earnings of regular wage employees is
explored in this paper. Besides education and experience, literacy index, technical training,
and school quality are included in the earning functions estimated for individuals. The
credentialist view that education does not improve productivity—that it rather provides
positive signals about productivity—is also tested. The results are based on the Pakistan
Integrated Household Survey 1995-96 data, which provides information on many aspects of
the individual’s characteristics missing in other surveys. The results of the study provide
ample evidence in favour of human capital as a productivity-enhancing device for both male
and female workers. All human capital variables are found to be statistically significant,
having positive magnitude. The diploma effect is not very important for Pakistani workers,
as only a few diploma dummies are statistically significant.
Journal: The Pakistan Development Review
Pages: 1-28
Volume: 41
Issue: 1
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume1/1-28.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:1:p:1-28
 
Template-Type: ReDIF-Article 1.0
Author-Name: Naeem Muhammad
Author-X-Name-First: Naeem
Author-X-Name-Last: Muhammad
Author-Workplace-Name: Department of Economics and Finance, Institute of Business Administration, Karachi University Campus, Karachi.
Author-Name: Abdul Rasheed
Author-X-Name-First: Abdul
Author-X-Name-Last: Rasheed
Author-Workplace-Name: Applied Economics Research Centre, Karachi University, Karachi.
Title: Stock Prices and Exchange Rates: Are they Related? Evidence from South Asian Countries
Abstract: The issue of whether stock prices and exchange rates are related or not has
received considerable attention after the East Asian crisis. During the crisis the
countries affected saw turmoil in both currency and stock markets. If stock prices
and exchange rates are related and the causation runs from exchange rates to stock
prices, then the crisis in the stock markets can be prevented by controlling the
exchange rates. Moreover, developing countries can exploit such a link to
attract/stimulate foreign portfolio investment in their own countries. Similarly, if the
causation runs from stock prices to exchange rates then authorities can focus on
domestic economic policies to stabilise the stock market. If the two markets/prices
are related then investors can use this information to predict the behaviour of one
market using the information on other market.1
Most of the empirical literature that has examined the stock prices-exchange
rate relationship has focused on examining this relationship for the developed
countries with very little attention on the developing countries. The results of these
studies are, however, inconclusive. Some studies have found a significant positive
relationship between stock prices and exchange rates [for instance Smith (1992);
Solnik (1987) and Aggarwal (1981)] while others have reported a significant
negative relationship between the two [e.g., Soenen and Hennigar (1998)]. On the
other hand, there are some studies that have found very weak or no association
between stock prices and exchange rates [for instance, Franck and Young (1972);
Bartov and Bodnor (1994)].
On the issue of causation, the evidence is also mixed. Some studies [for
instance, Abdalla and Murinde (1997)] have found causation runs from exchange
rates to stock prices while other reported a reverse causation [e.g., Ajayi and
Journal: The Pakistan Development Review
Pages: 535-550
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/535-550.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:535-550
 
Template-Type: ReDIF-Article 1.0
Author-Name: Haroon Sharif
Author-X-Name-First: Haroon
Author-X-Name-Last: Sharif
Author-Workplace-Name: Securities and Exchange Commission of Pakistan, Islamabad.
Title: Structural Issues and Reforms in Financial (non-bank) Market in Pakistan
Abstract: A large body of research now links financial sector development, including
the depth of the banking system, liquidity in capital market, and financial
liberalisation to long-run growth and poverty reduction. According to a recent World
Bank report,1 “As the dust settles from the great financial crises of 1997-98, the
potentially disastrous consequences of weak financial markets are apparent”. The
report further states that the importance of getting financial policy making right has
become one of the most critical development issues in this century. In the past, there
have been two extreme approaches concerning financial market regulation. One
clearly supports the central role of state in the financial markets, whereas, the other
sees state intervention more of a problem than as the solution. Of these two rather
diverging ideologies, the International Financial Institutions (IFIs) advocate the
development of market institutions, more liberalisation and lesser role of state.
Pakistan has been following IFI advice in this regard. However, after the East Asian
Crisis, a strong point of view has emerged that believes that in developing countries,
ruling out state’s role from financial markets is unrealistic. But, the state has to play
a developmental role. According to Stiglitz (1991), “governments have played a
central role—whether good or ill may be debated—in the development of most of
those countries which today belong among the more developed”.
The financial policy focus in developing countries is quite often donor
directed and is tilted towards the provision of diversified financial services. Capital
market development is an important element of this policy, as it is considered as a
flexible alternative to bank financing and useful in diversifying ownership of assets.
Journal: The Pakistan Development Review
Pages: 915-928
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/915-928.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:915-928
 
Template-Type: ReDIF-Article 1.0
Author-Name: Krishna Rao Akkina
Author-X-Name-First: Krishna Rao
Author-X-Name-Last: Akkina
Author-Workplace-Name: Department of Economics, Kansas State University, Manhattan, Kansas, USA.
Author-Name: Mehmet Ali Celebi
Author-X-Name-First: Mehmet Ali
Author-X-Name-Last: Celebi
Author-Workplace-Name: Department of Economics, Kansas State University, Manhattan, Kansas, USA.
Title: The Determinants of Private Fixed Investment and the Relationship between Public and Private Capital Accumulation in Turkey
Abstract: The purpose of this study is to analyse the determinants of private fixed investment
spending in Turkey over the period 1970–96, which covers years of both financial
repression and financial liberalisation. A reformulated neoclassical investment model and
a reformulated flexible accelerator investment model have been tested for the Turkish
economy. The results obtained support the accelerator principle and the crowding out
hypothesis, that is, public and private sector investments have been found to be
substitutes. Furthermore, the hypothesis that the volume of funds is as important as the
cost of funds used in financing private fixed investment has been verified. On the other
hand, the so-called McKinnon-Shaw hypothesis has not been completely verified because
the effect of the medium-term real lending rate on private fixed investment has been found
to be negative but statistically insignificant. Finally, the financial and liberalisation
programmes that have been implemented since 1983 have not yet shown any noticeable
positive effects on private investment.
Journal: The Pakistan Development Review
Pages: 243-254
Volume: 41
Issue: 3
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume3/243-254.pdf
File-Format:Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:3:p:243-254
 
Template-Type: ReDIF-Article 1.0
Author-Name: Naushin Mahmood
Author-X-Name-First: Naushin
Author-X-Name-Last: Mahmood
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Author-Name: Syed Mubashir Ali
Author-X-Name-First: Syed Mubashir
Author-X-Name-Last: Ali
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Title: The Disease Pattern and Utilisation of Health Care Services in Pakistan
Abstract: Health is an important aspect of human life. In general terms, better health
status of individuals reflects reduced illnesses, low level of morbidity, and less
burden of disease in a given population. It is widely recognised that improved health
not only lowers mortality, morbidity and level of fertility, but also contributes to
increased productivity and regular school attendance of children as a result of fewer
work days lost due to illness, which in turn have implications for economic and
social well-being of the population at large. Hence investing in health is vital for
promoting human resource development and economic growth in a country [World
Bank (1993)].
A view of Pakistan’s health profile indicates that the sector has expanded
considerably in terms of physical infrastructure and its manpower in both the public
and private sector. This has contributed to some improvement in selected health status
indicators over the years. However, the public health care delivery system has been
inadequate in meeting the needs of the fast growing population and in filtering down its
benefits to the gross-root level. As such, Pakistan still has one of the highest rates of
infant and child mortality, total fertility and maternal mortality when compared with
many other countries in the Asian region [UNDP (2000)]. Due to low priority given to
social sector development in the past and low budgetary allocations made to the health
sector, the evidence shows that mortality and morbidity indices have not reduced to the
desired level and large gaps remain in the quality of care indicators, especially in rural
areas [Federal Bureau of Statistics (2000)].
High levels of infant and child mortality and fertility in Pakistan point towards
the fact that health and illness problems are severe for young children and mothers.
Journal: The Pakistan Development Review
Pages: 745-757
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/745-757.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:745-757
 
Template-Type: ReDIF-Article 1.0
Author-Name: Ehsan U. Choudhri
Author-X-Name-First: Ehsan U.
Author-X-Name-Last: Choudhri
Author-Workplace-Name: Carleton University, Canada.
Author-Name: Mohsin S. Khan
Author-X-Name-First: Mohsin S.
Author-X-Name-Last: Khan
Author-Workplace-Name: International Monetary Fund, Washington, D.c.
Title: The Exchange Rate and Consumer Prices in Pakistan: Is Rupee Devaluation In Inflationary?
Abstract: This paper challenges the popular view that devaluation of the rupee is inflationary.
Recent developments in the theoretical literature are reviewed to explain why consumer
prices would be unresponsive to exchange rate changes in the short run. Then empirical
tests are conducted for Pakistan during the period 1982 to 2001 to examine whether
inflation is systematically related to changes in the exchange rate. The empirical analysis
finds no association between rupee devaluations and inflation in Pakistan. It appears,
therefore, that concerns about the inflationary consequences of rupee devaluation are
unsupported by the facts
Journal: The Pakistan Development Review
Pages: 107-120
Volume: 41
Issue: 2
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume2/107-120.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:2:p:107-120
 
Template-Type: ReDIF-Article 1.0
Author-Name: Rukhsana Kalim
Author-X-Name-First: Rukhsana
Author-X-Name-Last: Kalim
Author-Workplace-Name: Institute of Leadership and Management, Lahore.
Author-Name: Suleman Aziz Lodhi
Author-X-Name-First: Suleman
Author-X-Name-Last: Aziz Lodhi
Author-Workplace-Name: All-Pakistan Textile Mills Association (APTMA), Lahore.
Title: The Knowledge-based Economy: Trends and Implications for Pakistan
Abstract: Economic history has witnessed transformation from Agriculture based to
Manufacturing based economies over the time. This transformation had its effects
on social structure of the communities, as new types of jobs were created in the
manufacturing industries, and new life styles of metropolitan culture evolved. A
similar transformation is now taking place as; business has grown global over the last
years, making the present business atmosphere further competitive, fast and fluid.
Technological and political events taking place across the world affect us as strongly
as something happening in our neighbourhood.
The two most recent and prominent developments of present times that have
changed our economic activities are:
(1) Globalisation;
(2) Increase in Information and Communication Technologies (ICT).
Globalisation is most obvious, as the volume of global trade and products has
expanded manyfold. The world economies are opening up to new world horizons.
Developments in Information Technology has increased the pace of the events,
bringing new products to markets from all over the world, increasing the global
watch and reach of the organisations. As a result of this, the companies are forced to
reduce the costs and product development time of their products.
Second prominent development taking place during this time is the increase in
ICT. These ICTs (particularly Intranets/Internet) have provided new channels and
means of acquiring knowledge and opened new doors of promising opportunities like
e-business. Sharp decrease in cost of computer hardware and software, plus
improvement in software development has been responsible for increasing number of
firms using computers in their business processes. Computer has proved itself to be
a revolutionary tool for management, its data and information processing capabilities
has improved management in all domains.
Journal: The Pakistan Development Review
Pages: 787-804
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/787-804.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:787-804
 
Template-Type: ReDIF-Article 1.0
Author-Name: Zehra Aftab
Author-X-Name-First: Zehra
Author-X-Name-Last: Aftab
Author-Workplace-Name: Social Policy Development Centre, Karachi.
Author-Name: Aurangzeb
Author-X-Name-First: Aurangzeb
Author-Workplace-Name: Social Policy Development Centre, Karachi.
Title: The Long-run and Short-run Impact of Exchange Rate Devaluation on Pakistan's Trade Performance
Abstract: In estimating trade elasticities for Pakistan, most previous researchers have
employed non-stationary data and OLS or 2SLS techniques. In this paper we use
Johansen’s cointegration methodology to re-investigate the long-run trade elasticities and
existence of the Marshall-Lerner condition. Using quarterly data, the trade performance
with Pakistan’s ten major trading partners is empirically tested. Moreover, we also
investigate the short-run exchange rate dynamics by constructing an error-corrrection
model to trace the j-curve.
Journal: The Pakistan Development Review
Pages: 277-286
Volume: 41
Issue: 3
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume3/277-286.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:3:p:277-286
 
Template-Type: ReDIF-Article 1.0
Author-Name: Syed Nisar Hussain Hamdani
Author-X-Name-First: Syed Nisar
Author-X-Name-Last: Hussain Hamdani
Author-Workplace-Name: University of Azad Jammu and Kashmir, Muzaffarabad.
Author-Name: Eatzaz Ahmad
Author-X-Name-First: Eatzaz
Author-X-Name-Last: Ahmad
Author-Workplace-Name: Depart of Economics, Quaid-i-Azam University, Islamabad.
Title: Towards Divine Economics: Some Testable Propositions
Abstract: Throughout the human history, the religion has remained a fundamental
feature of social construct and human behaviour. Religious orientation plays
important role in shaping human perceptions about economic and non-economic
activities. With few exceptions, religion has remained an un-explored area in
economics. For most economists, narrative and metaphor have no place in a rational
choice theory, which is a wrong belief. In fact, any approach that considers
behavioural laws satisfying the criteria of objectivity, reproducibility, and refutability
is scientific and falls in purview of rational choice framework. A few studies,
however, do exist on economics of religion under rational choice concerning to
households, groups, and entire “religious markets”. [Becker (1976); Iannaccone
(1988, 1990, 1992, 1993); Mack and Leigland (1992)].
Rosenberg (1985) presents discussion of the limitations of neoclassical
economic theory due to its reliance on exogenous differences in taste and preference.
It is argued that these limitations cannot be circumvented by findings and theories in
other disciplines (e.g., psychology), because any measurement of preferences must
begin with neoclassical assumptions about rationality. The alternative to tasteendogeniety
advanced by [Becker (1976)] is found to only circumvent the usual
difficulties if “stable preferences” notion is interpreted as needs. Further
advancement is not taking place because of the important heterogeneous variables,
which have yet received little attention from economists. Such variables may be
found in attitudes and values acquired by consumers in variety of social and religious
environments.
Journal: The Pakistan Development Review
Pages: 609-626
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/609-626.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:609-626
 
Template-Type: ReDIF-Article 1.0
Author-Name: Toseef Azid
Author-X-Name-First: Toseef
Author-X-Name-Last: Azid
Author-Workplace-Name: Bahauddin Zakariya University, Multan.
Author-Name: Mohammad Aslam
Author-X-Name-First: Mohammad
Author-X-Name-Last: Aslam
Author-Workplace-Name: District Officer, Planning, Bahawalpur.
Author-Name: Mohammad Omer Chaudhry
Author-X-Name-First: Mohammad
Author-X-Name-Last: Omer Chaudhry
Author-Workplace-Name: Department of Economics, Bahauddin Zakariya University, Multan.
Title: Transfer of Technology: Competition or Cooperation
Abstract: Looking at an economy as consisting of several layers of techniques gives us a
way to spell out the implications of macroeconomic situations to micro levels. For
instance, if macroeconomic consideration point to reducing total employment, a map
of the layers of techniques of the economy should be able to pinpoint the firms of
different regions that are likely to be effected.
In such cases, to be able to delineate the effects of extra final demand of the
new investment on the production and employment in the economy, we require best
input-output and labour coefficients instead of the average ones that are at present
computed worldwide. Similarly, for capacities going out of production either
because of the lack of demand, or obsolescence, we want to have the knowledge of
the least efficient techniques of production for finding out their economic
implications [Azid (2002)].
This will not only would be necessary for predicting the effects of changes in
the final demand but will also through a significant light on the international
competitiveness. There is a view that one of the reason for the competitive advantage
of Japan and West Germany after the war was that while the price structure in the
rest of the countries was determined in such a way that the even the least efficient
producer may be able to produce without losses, the new industries in these countries
were producing with the latest techniques transferred to them by allies, giving them
sufficient cost advantage. Similarly, current developing countries are not able to
become exporters of manufacturers, as the technological transfer coming their way is
of the techniques on the verge of obsolescence in the developed countries.
Journal: The Pakistan Development Review
Pages: 761-786
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/761-786.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:761-786
 
Template-Type: ReDIF-Article 1.0
Author-Name: Talat Anwar
Author-X-Name-First: Talat
Author-X-Name-Last: Anwar
Author-Workplace-Name: UNDP/Centre for Research on Poverty Reduction and Income Distribution, Islamabad.
Author-Name: Sarfraz K. Qureshi
Author-X-Name-First: Sarfraz K.
Author-X-Name-Last: Qureshi
Author-Workplace-Name: UNDP/Centre for Research on Poverty Reduction and Income Distribution, Islamabad.
Title: Trends in Absolute Poverty in Pakistan: 1990-91 and 2001
Abstract: Poverty, defined comprehensively as absence of options to shape one’s life
according to one’s own preferences, comes closer to the concept of human
development as presented in UNDP’s Human Development Reports. Absolute
poverty, on the contrary, defines poverty in terms of satisfaction of minimum
physical needs of food and non-food items to enable people at the lower end of
income distribution to engage in economic activity. From the vantage point of the
policy-maker concerned with alleviation of poverty, it is crucial to know the
magnitude of the existing level of poverty and identify the policy determinants of
poverty as well as constraints standing in the way of an effective attack on the worst
forms of absolute poverty.
In Pakistan, like many other developing countries, poverty has emerged as a
core issue on the policy agenda. The traditional measures of poverty—headcount,
severity and poverty gap indicate that the incidence of poverty during the previous
decade have shown no sign of poverty abatement despite numerous policy and
institutional initiatives undertaken by the government. The debate on trends in
poverty during the 1990s—an era of stabilisation and structural adjustment has been
wide-ranging in Pakistan. However, there is no consensus on the poverty outcomes
from the policy and institutional reforms. Primarily due to non-availability of basic
data, the last year for which poverty estimates are available is 1998-99.
In view of the need to monitor poverty trends and continuously evaluate the
efficacy of policies adopted by the government under the poverty reduction
strategy, it is important to evolve a consensus on the use of a consistent poverty
line, sources of data and data adjustments for measuring poverty. It is this policy
context that has guided us to use a consistent definition of poverty line.
Journal:The Pakistan Development Review
Pages: 859-878
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/859-878.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:859-878
 
Template-Type: ReDIF-Article 1.0
Author-Name: Munir Ahmad
Author-X-Name-First: Munir
Author-X-Name-Last: Ahmad
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Author-Name: Ghulam Mustafa Chaudhry
Author-X-Name-First: Ghulam Mustafa 
Author-X-Name-Last: Chaudhry
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Author-Name: Mohammad Iqbal
Author-X-Name-First: Mohammad
Author-X-Name-Last: Iqbal
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Title: Wheat Productivity, Efficiency, and Sustainability: A Stochastic Production Frontier Analysis
Abstract: The agriculture sector plays a crucial role in the overall development of the
country. The sector shares about 24 percent of the GDP and employs about 44
percent of the workforce in the country. Crops sub-sector is the major contributor
towards agriculture, sharing more than 53 percent of the value-added. Wheat, being
the staple food of Pakistanis, carries immense importance: it contributes about 12
percent of sector value-added, is sown on about 37 percent of the total cropped area,
and shares 80 percent in consumption of food grains, while its share in food grain
production is around 70 percent. As primary diet, wheat alone shares about 50
percent of the total calories’ and proteins intake in Pakistan, and contributes about 8
percent of the total fat consumed [FAO (Various Issues]. Consequently, overall
dietary well being of our people especially the urban and rural poor is largely
dependent on the performance of wheat economy.
Despite serious efforts made by the wheat breeders in developing new highyielding
varieties during the past three decades, wheat production in Pakistan
remained short of demand and thus import has been the only alternative to fill the
gap. The present wheat requirement of the country is more than 20 million tonnes. It
has been estimated that by the year 2020 wheat import would rise up to 15 million
tones costing 2 billion US dollars [PARC (1996)]. The situation could worsen further
if Pakistan fails to achieve a higher level of growth rate in wheat production and
sustain it.
Journal: The Pakistan Development Review
Pages: 643-663
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/643-663.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:643-663
 
Template-Type: ReDIF-Article 1.0
Author-Name: Naushin Mahmood
Author-X-Name-First: Naushin
Author-X-Name-Last: Mahmood
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad
Title: Women’s Role In Domestic Decisionmaking In Pakistan: Implications for Reproductive Behaviour
Abstract: Women’s involvement in domestic decision-making is recognized as a distinct aspect of her
autonomy that has its implications for reproductive behaviour. Using data from the Pakistan
Fertility and Family Planning Survey 1996-97, this study examines the extent of Pakistani
women’s participation in household decision-making relative to their husbands and other family
members, and determines its effects on the demand for children and higher contraceptive use in
both urban and rural settings. The findings reveal that women’s decision-making authority is
clearly related to the context in which they live as urban women have an almost equal say in
household matters, as their husbands, whereas most rural women report that their husbands and
other family members have a predominant role in household decisions with regard to seeking
medical treatment for a sick child or to make purchases of household items. The results also
indicate that women with greater freedom to go outside home alone are also more likely to
participate in domestic decisions, and the linkage is stronger for rural than urban women. The
multivariate analysis reveals that the effect of decision-making variables on measures of
reproductive behaviour is strongly conditioned by socio-economic and demographic factors,
implying that measures of women empowerment give only a partial explanation of women’s
likelihood to desire fewer children and increase contraceptive use. The results in all suggest that
Pakistani women’s enhanced role in household decision-making has its effects relevant to
achieving gender equality and fertility reduction outcomes – the goals that are central to
population and development policy.
Journal: The Pakistan Development Review
Pages: 121-148
Volume: 41
Issue: 2
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume2/121-148.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:2:p:121-148
 
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Hanif Akhtar
Author-X-Name-First: Mohammad Hanif
Author-X-Name-Last: Akhtar
Author-Workplace-Name: International Business at the Department of Commerce, B.Z. University, Multan.
Title: X-efficiency Analysis of Commercial Banks in Pakistan: A Preliminary Investigation
Abstract: The emergence of a fast-paced dynamic environment in the business world in
general, and in the financial services sector in particular, has highlighted the
significance of competition and efficiency. The need for deregulation has become a
touchstone of success in fostering both competition and efficiency especially in the
economies, which are exposed to structural reforms. In addition to that, intense
competition both among domestic and foreign banks, rapid speed of innovations and
introduction of new financial instruments, changing consumer’s demands and desire
for product augmentation have changed the way a bank conducts business and
services its customers. Larger the degree of competition, it is perceived that the firms
would become more efficient. However, when the structure of an industry is product
of the government regulations, the degree of competition is impaired markedly
implying that the efficiency suffers negatively.
Banking industry acts as life-blood of modern trade and commerce acting as a
bridge to provide a major source of financial intermediation. Thus, appraisal of its
efficiency is vital in context of an efficient and competitive financial system. Study
of x-efficiency is believed to be important in particular as Berger, et al. (1993) found
that x-inefficiencies account for around 20 percent or more of banking costs.
Similarly, recent drive among banks towards downsizing, rightsizing and
rationalisation of banking costs also implicates for the assessment of x-efficiency
analysis of banks. It becomes vital in Pakistani context as there appears to be no
study in literature on efficiency or x-efficiency analysis of banks in Pakistan. “A
great deal more work is needed on x-efficiency research in banking. Managerial
efficiency, the concept of x-efficiency, appears to be a much more important
strategic and policy consideration” [Molyneux, et al. (1960), p. 273]. Given
Journal: The Pakistan Development Review
Pages: 567-580
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/567-580.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:567-580
 
Template-Type: ReDIF-Article 1.0
Author-Name: Mohammad Iqbal
Author-X-Name-First: Mohammad
Author-X-Name-Last: Iqbal
Author-Workplace-Name: Pakistan Institute of Development Economics, Islamabad.
Author-Name: M. Azeem Khan
Author-X-Name-First: M.
Author-X-Name-Last: Azeem Khan
Author-Workplace-Name: Social Sciences Institute, National Agriculture Research Center, Islamabad.
Author-Name: M. Zubair Anwar
Author-X-Name-First: M. Zubair
Author-X-Name-Last: Anwar
Author-Workplace-Name: Social Sciences Institute, National Agriculture Research Center, Islamabad.
Title: Zero-tillage Technology and Farm Profits: A Case Study of Wheat Growers in the Rice Zone of Punjab
Abstract: The rice-wheat cropping zone of Punjab is the main producer of high-valued
and fine quality basmati rice in Pakistan. The rice produced in this area is famous
for its grain length and aromatic characteristics. Being an important export item, rice
contributes significantly to the national foreign exchange earnings. Wheat is the
other major crop of the rice-wheat system and being the staple food is central to
national agricultural policies. Rice is grown on a vast area in this zone during Kharif
mostly followed by wheat in the Rabi season. Studies have shown that a large gap
exists between the potential and yields actually realised by the wheat growers of the
area [Byerlee, et al. (1984); Hobbs (1985) and Sheikh, et al. (2000)]. Farmers’
practices regarding land preparation for paddy, wheat planting time, and other
conflicts endogenous to the rice-wheat based cropping system were identified as the
major factors limiting wheat yield in the area. The flooded and puddled soils that are
well suited for paddy production as compared to well-drained conditions required for
wheat is such an example of the system conflicts.
The farmers in the rice-wheat zone of the Punjab predominantly grow basmati
varieties, which are late maturing as compared to coarse varieties of rice. Therefore,
paddy harvest is generally delayed at most of the farms in this zone. The late paddy
harvest coupled with poor soil structure and loose plant residues create problems for
preparation of a good seedbed and planting of wheat often gets late [Byerlee, et al.
(1984)]. The farmers also had to resort to the broadcast method for wheat sowing
which results in poor and patchy plant stands.
Journal: The Pakistan Development Review
Pages: 665-682
Volume: 41
Issue: 4
Year: 2002
File-URL: http://www.pide.org.pk/pdf/PDR/2002/Volume4/665-682.pdf
File-Format: Application/pdf
Handle: RePEc:pid:journl:v:41:y:2002:i:4:p:665-682