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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 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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This study examines the underlying factors driving the persistence of Undocumented Oil Trade (UOT) in Pakistan, with a particular focus on the Pakistan-Iran border region. It argues that, despite a series of policy interventions by the Government of Pakistan, UOT remains a…
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Proponents of a free-floating or market-driven ER regime have argued that distortionary CB interventions in the foreign exchange (FX) market alter the ER trajectory. Historically, evidence shows such interventions result in ER misalignment, eventually leading to the widening of the trade deficits…
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Pakistan’s move to allocate 2,000 MW for AI data centers represents a major step forward to drive digital growth and foreign investment. However, this expansion may significantly strain the already stressed water resources. The issue persists due to over-dependence on groundwater, climate…
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Exchange Rate Pass-Through (ERPT) refers to the degree to which changes in the exchange rate (ER) affect domestic prices of an economy. Since Pakistan’s economy has a considerable level of openness to international trade, the domestic price level is sensitive to external…
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This study examines the increasing impact of automation and artificial intelligence (AI) on employment patterns in Pakistan's major economic sectors, such as manufacturing, agriculture, logistics, energy, construction, and services. As labour-intensive sectors make up the backbone of Pakistan's economy, AI adoption presents…
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Using a sectorally disaggregated Computable General Equilibrium (CGE) model, inclusive of direct cost estimates for military assets, infrastructure damage, disrupted trade and service sector impacts, this study estimates that India's economy incurred at least $88.712 billion in realized losses over the four-day…
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This Paper explores the significance of industrial structural output for Pakistan’s economy focusing on GDP analysis. This may be about the mixed fortunes of the industrial sector, where sub-sectors like small-scale manufacturing and construction are relatively healthy whereas Large-scale manufacturing and…
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Tariff rationalisation is crucial for Pakistan's economic transformation, promoting export competitiveness, industrial efficiency, and trade integration. Pakistan's overdependence on high tariffs as a source of revenue has resulted in an anti-export bias, increasing the cost of production, deterring foreign investment, and…
