Kalbe Abbas

Money, Income and Prices in Pakistan

This paper re-examines the causal relationship between money and income and between money and prices in Pakistan. Using an annual data set for Fiscal Years 1959/60 to 2003/04 and employing Co-integration and Error Correction Models as well as the standard Granger Causality analysis we investigate the Bi-variate and Tri-variate causal relationships. The Co-integration analysis indicates, in general, the long run relationship among money, income, and prices. The Error Correction and Granger Causality framework suggest a one way causation from income to money in the long run implying that probably real factors rather than money supply has played a major role in increasing Pakistan’s national income. Regarding the causal relationship between money and prices, the causality framework provides the evidence of bi-variate causality indicating that monetary expansion increases, and is also increased by inflation in Pakistan. However, Money supply seems to be the leader in this case.

Additional evidence on inflation variability: The experience of asian countries

Abstract The relationship between inflation and its variability has been examined by using time series data for eight Asian Countries. It is found that this relationship also holds for countries which have enjoyed a period of long price stability. Furthermore, this relationship also holds for highly industrialized countries.

The Uruguay Round Agreement and Pakistan's Trade in Textiles and Clothing

The textile and clothing sector is of strategic importance to Pakistan, accounting for more than 50 percent of its manufactured exports. The phasing-out of MFA type restrictions and other trade barriers is generally expected to have positive effects on Pakistans exports of textiles and clothing in the long run. At the same time, However, the eroson of preferencial treatment embodied in the Multi-Fiber Agreements poses many challenges to textile and clothing industry in Pakistan. The emerging scenario of freer trade in textiles and clothing highlights the need to enhance competitiveness in this sector by improving product quality, efficiency of resource use, and productivity. Also, there is a need to advance in the reforms and liberalization of the economy, and to focus public policy towards addressing the structural problems of the textiles and clothing with a view to enabling it to compete better in the more competitive international market.

S. Akbar Zaidi. Issues in Pakistan’s Economy. Second Edition Revised and Expanded. Karachi: Oxford University Press, 2005. xii+530 Pages. Paperback. Pak. Rs 595.00.

“Issues in Pakistan’s Economy” by S. Akbar Zaidi was first published in 1999. The book provided comprehensive information on different aspects of the economy in Pakistan since independence. The idea of writing this book originated from Oxford University Press as there was no book on the economy of Pakistan to benefit the graduate students, researchers, scholars, academicians, and the general public. The book was prescribed as a standard text book in the area of issues in Pakistan’s economy. It is also used as a standard book on the courses on South Asia’s development, economic history, and political economy of the region. The book became a best seller due to its subject matter. That is why a great need was felt to update the book that forced the author to expand, update, and revise the book and improve the shortcomings left in the previous edition. The Second edition includes a large amount of new research material. Also, the most recent available data have been included in the tables of the text throughout the book. Three new chapters have been added, some of the chapters have been reformulated, and the new arrivals in theory and empirical research have also been incorporated, accordingly. The book under review presents the important issues in the form of boxed text, appendices, chapter summaries, and provides suggested readings to further enhance the knowledge in specific areas. The efforts and the pains of the author in completing this book are highly laudable in producing such a valuable piece of research on economic development in Pakistan over the fifty-seven years to benefit the end users in completing their studies, research work, and policy-oriented assignments.