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Informality remains a defining feature of Pakistan’s economy. It acts as an employment shock absorber. It however constrains fiscal growth and productivity levels. This study examines the scale, pattern, size, and structural implications of Pakistan’s informal economy. Based on data from the…
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Pakistan's real estate sector is the driver of economic development as it generates major contributions to GDP, jobs, and city and urban development. Despite expanding very quickly due to population growth, urbanisation, and foreign investments, the sector suffers from several important issues…
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Pakistan’s telecom sector, with over 200 million mobile subscribers and 150 million broadband users, contributes PKR 335 billion annually to the national exchequer in the form of direct taxation and PTA revenues. Despite high digital penetration, the industry struggles with reactive service…
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Pakistan faces one of the largest tax gaps in South Asia. Despite repeated tax reforms, the tax-to-GDP ratio has remained stagnant, undermining fiscal stability and limiting the country’s capacity to achieve its development goals. This study investigates how Pakistan can address its…
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Agriculture contributes 24 percent to Pakistan’s national economy and employs 37.4 percent of the workforce. Despite this strong agricultural base, the bioeconomy’s share in national output remains among the lowest globally. This shows a wide gap between the available bioeconomy resources and…
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Since 1776, Adam Smith’s theory of absolute advantage has remained central to modern economic thought on international trade. Over time, however, its universal validity has been increasingly contested due to recurring trade imbalances, asymmetrical distribution of trade gains across nations, and instances…
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Pakistan has secured its crude oil import deal with the United States, marking a significant shift in its energy procurement strategy. This policy brief assesses the strategic, economic, and geopolitical implications of the U.S. deal compared to oil imports from traditional suppliers.…
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This Brief conducts a systematic analysis of Pakistan’s federal budget documents from 2010 to 2024 using a text mining approach. Despite significant shifts in domestic and global economic conditions, the focus of these documents has remained on recurring economic challenges such as…
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Pakistan received USD7 billion in the Extended Fund Facility (EFF) in the 25th arrangement of the IMF. Since independence, Pakistan has received financial assistance from the IMF twenty-five times, resulting in temporary short-term stability. However, the austerity measures proposed by these programs…
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This Policy Brief explores the implications of a premature trade liberalisation in Pakistan. It highlights that Pakistan’s economy faces recurring balance of payments crises, foreign exchange shortages, limited export diversification, and weak domestic demand. Collectively, these structural vulnerabilities pose a significant risk…
