Economics Commons^™

Good Governance Is Good Politics, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

Pakistan has been facing a unique and difficult dilemma for quite some time. Government leaders of the day are unhappy that they are unable to deliver upon the commitments they had made to the electorate at the time of the elections. The political leaders complain that the policy formulation is weak, Policy-Performance Gap is widening every day, and implementation of decisions almost non-existent. The bureaucrats are unhappy that they are not allowed to do their job because of interference by the politicians. The citizens and society are highly disenchanted and dissatisfied as they are unable to access basic services the …

How To Reform The Civil Services In Pakistan?, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

All Pakistan Services should consist of the National Executive Service, the Pakistan Administrative Service and Police Service of Pakistan. The Federal Services will comprise the Pakistan Foreign Service, Pakistan Audit and Accounts Service Pakistan Taxation Service and Pakistan Technical Services with sub cadres. Direct recruitment to other existing services through the Central Superior Services examination will be discontinued in a phased manner. The Provincial Services will include the Provincial Executive Service, Provincial Management Service, Provincial Technical Services and Provincial Judicial Service. All direct recruitment to positions in Grade 17 and above will be merit based with due representation to the …

Deliverable Democratic Governance, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I wish to thank Kazim Saeed for providing me this opportunity to pay tributes to Mumtaz Saeed and to share my thoughts about the book he has so ably authored. I knew Mumtaz Saeed in several different capacities. First, he was my consultant for the Change management of State Bank of Pakistan and his assistance was of immense help to me in the transformation of the Bank. Second, when I took over as the Dean & Director of IBA Karachi I drafted a consultative strategy document which I circulated for comments and the views of the stakeholders including IBA’s alumni. …

Pak-Afghan Economic Ties, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Several significant developments have taken place in Afghanistan in the past few months that require fresh thinking and a review of the relationship between Pakistan and Afghanistan. First, most of the Nato forces have withdrawn from Afghanistan while the presence of US forces has been considerably reduced and largely limited to support and training of the Afghan National Army. Second, the general elections in Afghanistan were successfully conducted with a large turnout and the majority of the population participated in this peaceful democratic transition. Third, the newly elected President Ashraf Ghani enjoys excellent credentials and is committed to the economic …

عوام الناس کو اپنی ذمے داریوں کا ادراک کرنا ھوگا, Shakeel Dehlvi

Faculty Research - Newspaper and Magazine Articles

No abstract provided.

Impact Of Board Characteristics And Audit Committee On Financial Performance: A Study Of Manufacturing Sector Of Pakistan, Arfan Ali, Saad Bin Nasir

Business Review

The research will examine the role of corporate governance (CG) practices on firm’s financial performance. Population of this research will be manufacture sector of Pakistan. For the purposes of measurement of impact of corporate governance practices such as board size, board independence, CEO/chairman duality and audit committee will take as independent variables and for the measurement of firm’s performance return on assets and return on equity will take as dependent variables. Panel data regression model will used to estimate the impact of CG on firm performance.

Book Review Of: Why Nations Fail, Ashutosh Mani Dixit

Business Review

The purpose of this article is to assess the contribution of Why Nations Fail about its forefront claim that institution is exclusive determinant of nation’s economic outcome. This paper will examine its findings and put forward arguments and claims of prominent studies about economic development. The paper has been organized in two more section. Immediate section presents chapter wise summary of the book highlighting strengths and key outcomes. While the third section, which is the purpose of the article, offers a critique, than sums up in final section providing some concluding comments.

Determinants Of Capital Structure Of Service And Manufacturing Sectors Of Pakistani Companies Listed In Karachi Stock Exchange, Zahid Ali Channar, Manisha Bai Maheshwari, Piribhat Abbasi

Business Review

Capital structure alludes to how an organization finances its operations whether through shareholders equity, debt or a blending of both. This study was aimed to find out the determinants of capital structure in Manufacturing and Service Sectors of Pakistan and examine which capital structure theory (Trade off theory or Pecking order theory) is relevant in Pakistani context. For study secondary data was collected from financial statements of 30 Companies and then data was analyzed through Correlation and Multi Regression analysis. Results showed that leverage has negative significant relationship with tangibility in both sectors which conformed Pecking order theory is followed …

Asset Price Bubbles With Specific Focus On Stock Prices In Pakistan, Nawaz Ahmad, Rizwan Raheem Ahmed, Yaseen Ahmed Meenai

Business Review

This research paper is an attempt to investigate Asset Price Bubbles (APB) with reference to Pakistan stock market. The analysis of time series graph shows a linear trend between Consumer Price Index (CPI) and Money Supply Index (M2I) whereas a nonlinear trend with stock prices. Moreover, the graph also shows an unequal spread with the stock prices, which indicate Heteroskedasticity. Then, descriptive statistics test shows high Standard Deviations for stock prices compared with CPI and M2I, which indicate a higher volatility in stock prices. Finally, the hypothesis test for equality of variance concluded the presence of Asset Price Bubbles by …

Revisiting Compensating Wage Differentials: The Evidence From Employer-Provided Health Insurance, Dan Qu

Business Review

This paper uses 1996 and 2001 Survey of Income and Program Participation to examine the evidence for compensating wage differentials associated with employer-provided health insurance (EHI) in the United States. The results provide no evidence of a tradeoff between wages and EHI coverage. On the other hand, the results do suggest that employees who work in states with income taxes are more likely to receive EHI than those in states without income taxes. Fixed effects, first differencing and instrumental variable estimation are used to address the potential ability bias and endogeneity problems in wage models with EHI as an independent …

What Lies At The Core Of Core Inflation? An Empirical Analysis To Identify The Determinants Of Core Inflation In Pakistan, Mehwish Ghulam Ali, Muhammad Ather Elahi, Qazi Masood Ahmed

Business Review

Core inflation leads to erosion of purchasing power and distorts income distribution in favor of the rich and the creditors. Further, it aggravates poverty due to its regressive effect. By targeting core inflation, the Central Bank attempts to reduce poverty and improve income distribution. The Central Bank does and should target core inflation for the aforementioned objectives, hence it becomes necessary to identify if factors apart from monetary policy affect core inflation. This paper aims to identify the determinants of core inflation in Pakistan. This study is motivated by the lack of work done in identifying the determinants of core …

Profiling Organizational Culture Of Different Sectors In Pakistan, Zaki Rashidi, Nadeem A. Syed, Sajida Zaki

Business Review

Organizational Culture is gaining importance in the modern organization theory and research. Mangers are more emphasizing to understand the culture and climate of their organization to enhance the effectiveness and productivity of the organization. Organizational development practitioners and change management flag bearers harmoniously favoring to comprehend the culture of any organization for any kind of change or transformation. Organizational Culture Profile (OCP) provides the basic tool to analyze and figure out the type and nature of cultural stream of any organization. The OCP helps to create the cultural-profile of the organization through a survey of the employees. This study encompasses …

The Ex-Dividend Day Stock Price Behavior: Evidence From Pakistan, Sana Tauseef, Mohammad Nishat

Business Review

The paper examines the ex-dividend day price behavior of the listed stocks in Karachi Stock Exchange for the period January 2009 to June 2010. During the examined period, there was no capital gain tax; however a 10% withholding tax applied on dividends. We use the standard event study methodology to examine the abnormal returns for days surrounding the exdividend day. The study reports a very low price drop ratios compared to their theoretical values. No significant excess returns are found on the exdividend day; however, significant positive abnormal returns are observed in the pre-event window and negative excess returns are …

A Roadmap For Governance Reforms, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

Pakistan has been facing a unique and difficult dilemma for quite some time. Government leaders of the day are unhappy that they are unable to deliver upon the commitments they had made to the electorate at the time of the elections. Policy-Performance Gap is widening every day, Decision making is slow and implementation of decisions almost non-existent. Credibility of each successive government is eroding rapidly among the public at large creating trust deficit in the political leadership. The citizens and society are highly disenchanted and dissatisfied as they are unable to access basic services the state has to provide to …

Pathways To Sustainable Development, Ishrat Husain Dr.

Faculty Research - Talks, Speeches, & Discourse

I would venture to broaden the scope of sustainable Development to include shared growth. After innumerable debates and discussions among the academic, practitioners and civil society Organizations, it has now been established that the concept of economic growth synonymous with increases in per capita income is too narrow and limiting. Various alternative conventional concepts such as Quality of Growth, Pattern of Growth, Growth with Redistribution, and Inclusive Growth have entered the vocabulary at several periods of time. One of the lessons we have learnt from the experience of the past few decades is that rapid economic growth has led to …

A Talk By Dr Ishrat Hussain, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

No abstract provided.

Deregulating The Economy, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

As in most debates in Pakistan there are sharply polarised views on the regulation and deregulation of private-sector activities. Some advocate re-gulation by the state as an effective tool to curb the market’s excesses. Others think markets should be left to themselves and the state should have few regulations. The argument put forward by the advocates of regulation has got much traction since the 2008-09 financial crisis. The global response has been to enact legislation to enhance the regulators’ powers or set up new regulatory agencies. Europe, for example, has several new institutions that have appeared on the scene in …

Delinking From Global Economy, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Pakistanis may not be aware but the nefarious designs of extremists who wish to isolate Pakistan from the rest of the world seem to be working. Unknown to us, the creeping delinking of Pakistan from the global economy has intensified in the last few years. Evidence corroborating this finding is quite strong and is discussed below.

Pakistan is widely perceived and projected in the Western world as “the most dangerous country in the world” or as “the epicentre of global terrorism”. More recently, Karachi has been described as the “world’s most violent megacity” where the state seems to have “ceded …

Defense Expenditures And Economic Growth In Pakistan And India: An Augmented Feder-Type Model, Muhammad Ramzan Sheikh

Business Review

To discover defense-growth nexus, this study has used Feder type model to capture the supply-side impacts for Pakistan and India. In Feder-type model, this study has used four sectors to find out total effects of defense spending on growth by using OLS technique. The findings of the study show that there is positive association between the total effect of defense and growth in all the sectors for both the countries. In augmented Feder type model, the total effects along with externality effects and productivity differential have been re-estimated. The sign of the total effects of defense sector remain the same …

Strategic Management Research: The Missing Linchpin In Developing Economy’S Context, Irfan Saleem

Business Review

Research is conducted to identify impact of adopting Strategic HRM on HR outcomes (i.e. job satisfaction and organizational commitment) and performance measures (i.e. organizational and, individual performance) in order to the fill empirical gap in developing economy’s context. Cased based survey approach has been adopted to retrieve the evidence from companies. Three organizations are studied in depth to identify the evidence about strategic role of HRM. Objectivism has been adopted to test ontological assumption whereas positivism has been incorporated to test the epistemological assumption to prove the nature of reality about Strategic HRM. Results depict that effective Strategic HRM adoption …

The Puzzle Of Mainstream And Deviant Globalization, Jawed Ahmed Qureshi, Amanat Ali Jalbani

Business Review

This probe examines the puzzles or challenges of globalization to developing as well as developed countries. Indeed this study is undertaken in nexus with another enquiry of the authors about the challenges confronted and strategically tackled to globally operating and expanding companies based in Pakistan. Globalization offers both opportunities and threats and embodies merits and demerits for people of the world. Mainstream globalization is recognized as acceptable or idealistic part of it, whereas deviant globalization is recognized as unacceptable or dark part of it. The investigation isqualitative in type and nature. From the extant literature, it extracts various theories and …

Provincial Finances, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

Most analysts still focus on the federal budget not realising that there has been a significant shift in the allocation of fiscal resources towards the provinces. This is what should have happened in the first place. After all, most interactions take place between citizens and the government and almost all basic services are delivered by the provincial governments. The question that needs to be examined is whether or not this shift has proved beneficial for the citizens and if the annual provincial budgets ought to be examined in this light.

These budgets have raised a number of issues that need …

Till Debt Do Us Part, Ishrat Husain Dr

Faculty Research - Newspaper and Magazine Articles

In 1950, when it was proposed that the economies of Europe be tied so closely together that war becomes impossible, this vision was not taken seriously. But step by step, integration happened. It started with the iron and steel industries, reduction in tariffs, slashing of subsidies, and dismantling of cartels.

Interview: Dr. Ishrat Hussain, Asif Jehangir Raja

Faculty Research - Newspaper and Magazine Articles

We should realize that when we got Pakistan in 1947, the regions/ areas comprising Pakistan were quite backward and not developed by the British Government. Except growing crops, there was not much of economic activity. But since then, we are one of the few developing countries which maintained 5% annual growth rate for over sixty years. Very few countries have this achievement to their credit. In the start, we used to be we now produce 25 million tons of wheat. We are the 4th largest producer of milk in the world

Policy Direction For The Budget, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The contours of the upcoming budget in terms of size, outlays, revenue collection targets, fiscal deficit etc. have been spelled out by the finance minister at various fora and by the IMF in its reports. So, it is not very interesting to speculate on whether the tax targets are ambitious, expenditures understated and subsidies underplayed.

The purpose here is to suggest that budgetary estimates and projections should be formulated in the context of a medium-term policy framework. The objectives of such a framework should be: to accelerate the rate of economic growth and job creation; to keep inflationary expectations under …

Economic Governance Wins In India, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The landslide victory of the BJP and the terrible beating of the Congress party in the recent Indian elections are likely to elicit different interpretations. Most observers and analysts, however, believe that the single most factor responsible for this startling outcome was the candidature of Mr Narendera Modi as the prime minister. His track record as the chief minister of Gujarat as a decisive economic reformer, a doer, and result-oriented leader is widely acclaimed and acknowledged even by his worst enemies and critics. The Indian business community, irrespective of differences within it, was unanimous in endorsing him as the most …

Parallel Sessions (Consumer Behavior & Culture): The Emerging Middle Class In Pakistan: How It Consumes, Earns, And Saves, Jawaid Abdul Ghani

International Conference on Marketing

During the first decade of the twenty first century, and for the first time in the history of Pakistan, over half of the households in the country belonged to the middle class (M-class). During this period (2002-2011) the M-class, defined as households with daily per capita expenditures of $2-$10 in 2005 purchasing power parity dollars1 , grew from 32 percent to 55 percent of all households in the country, and the number of people in this class doubled from 38 million to 84 million. Real aggregate national consumption increased by about $60 billion, of which $55 billion was accounted for …

Parallel Sessions (Consumer Behavior & Culture): An Investigation Of The Selection Criteria Of Islamic Banking In Pakistan: Customers’ Perspective, Zargham Ullah Khan

International Conference on Marketing

Banking system was firstly introduce in the era of Jews where large bankers use to do financial practices in the open market. In the past few decades‟ capitalistic economy gained momentum. Islamic banking was firstly introduced in Malaysia with the establishment of Islamic banks laid on the basis of SHARIAH compliance, during 1970-90 (Henry & Wilson, 2004; Iqbal &Mirakhor, 2007; Dusuki& Abdullah, 2007). Banking is as old as civilization found its way from barter economies towards market economy and price mechanism. At present the banks have an immense role in deciding the economic fate of any state. Strong banking system …

Promoting Islamic Finance, Ishrat Husain Dr.

Faculty Research - Newspaper and Magazine Articles

The government recently formed a high-powered committee to examine the current state of Islamic finance and suggest measures for future development.

The share of Islamic banks, introduced in Pakistan in parallel to the conventional banking system in 2001, has risen to 10pc of the banking assets in the country.

This achievement is not at all unimpressive considering that the growth rate of Islamic banking here is twice that of conventional banking.

Why is Islamic finance becoming popular worldwide and not only in Muslim countries? Muslims may be shifting towards it for reasons of faith but it is also receiving attention …

The Path To Excellence, Sara Agha

Faculty Research - Newspaper and Magazine Articles

I am extremely happy because the quality of the students who are attending IBA is superb. It can be compared with any other institution in the world. We keep on hearing that the standards of education have gone down in Pakistan but as far as I am concerned in my five years at IBA, I have come across very smart boys and girls who are capable of getting an admission anywhere in the world. They choose IBA and get jobs right away, in fact even before they graduate they get job offers. They are sought after by employers both locally …