Research suggests that politics plays a pivotal role in public service provision in contexts of scarce resources. However, there is limited evidence available on how dynastic politicians influence public service delivery. We examine this question in the context of the health sector in Punjab, Pakistan. By employing a representative sample of rural health clinics, we develop measures to capture doctors’ outcomes at the clinic level. These data are then matched with provincial constituency-level data to study the impact of having a dynastic member of the parliament (MP) on doctors’ assignment, attendance, and tenure in their respective constituencies. Our findings show that having a dynastic MP has no discernible impact on the assignment and attendance of doctors. However, clinics in constituencies with a dynastic MP have relatively experienced doctors. Furthermore, our suggestive evidence from the Pakistan Household and Living Measurement Survey (PSLM) shows that individuals living in districts with a higher proportion of dynastic MPs report lower improvements in clinic services and are less satisfied with those services. Our main findings remain robust to various alternative explanations.
KEYWORDS: Political Dynasties, Public Goods Provision, Pakistan, PSLM.
JEL: H51, H89.

The Government of Pakistan reimburses SAR 30 in Telegraphic Transfer Charges (TTC) for every USD 100 or more transferred by a foreign MTO into the country, as compensation for their transaction costs. In May 2020, the government removed this facility for KSA, citing zero transaction costs announced by the KSA authorities for digital money transfers from the kingdom. The inflow of workers’ remittances from KSA began to decrease once KSA eased the travel ban. This paper aims to estimate the impact of the withdrawal of TTC reimbursement on remittances flowing from KSA to Pakistan. The difference-indifference (DID) method is applied to data from July 2018 to September 2022. The estimates indicate that this policy caused an average monthly decline in remittances from KSA between US$ 31 million and US$ 76 million. The findings appear to be robust to various estimation adjustments.
KEYWORDS: Pakistan, remittance inflow, policy impact, Covid-19, panel data.
JEL: F24, F31.

This study examines the relationships among financial development, renewable energy, institutional quality, and carbon dioxide (CO2) emissions using dynamic panel data techniques from 1990 to 2020. The empirical results of the econometric analysis suggest that financial development does not necessarily reduce CO2 emissions unless institutional quality improves. Financial development exacerbates environmental deterioration by increasing CO2 emissions in all regions except Europe, whereas renewable energy consumption and institutional quality improve environmental quality. Thus, good institutional quality emerged as a mediating variable between financial development and environmental quality in curbing CO2 emissions and promoting sustainable development worldwide.
KEYWORDS: Carbon dioxide emissions; economic growth, financial development; institutional quality; renewable energy consumption, system GMM.
JEL: E31, Q41.

This paper explores the economics of environmental sustainability practices in the hospitality industry, focusing on the operational efficiency of hotels, cost-effectiveness, and return on investment (ROI), with a specific focus on the emerging market in Pakistan. Results indicate that green retrofits, including LED lighting and HVAC optimization, deliver average energy savings of 25-40 percent, payback periods of 1-5 years, and internal rate of return (IRR) of 18. Food-waste minimization systems, such as Winnow and Leanpath, have a 7:1 ROI in two years, and water recycling systems reduce consumption by 20-30 percent in less than four years. Hotels that operate sustainably worldwide show reduced operating costs by up to 30 percent and premium rates of 5-15 percent, based on customer willingness to pay higher rates in environmentally conscious hotels. The article presents a combination of comparative ROI modeling, policy SWOT analysis, and cross-regional benchmarking to assess the feasibility and scalability of green investments. By linking economic indicators to environmental performance, this research confirms that sustainability practices are not only environmentally advantageous but also economically strategic.
KEYWORDS: Pakistan, remittance inflow, policy impact, Covid-19, panel data.
JEL: E22, F64, O13.

It is widely believed that resources are becoming scarcer, and measuring their availability is crucial for efficient allocation. This study measures the availability and affordability of essential items in Pakistan before and after COVID-19. Time Price, Price Elasticity of Population (PEP), and Simon Abundance Index (SAI) are calculated to analyze thirty-nine items from Pakistan's CPI basket. The findings reveal that from 2006 to 2018, the Time Price decreased for almost all items, indicating increased affordability and resource abundance relative to population growth. However, the COVID-19 pandemic significantly increased the Time Prices of essential commodities, making them less affordable and less abundant. Policymakers are advised to adjust wages to maintain purchasing power and to adopt resilient strategies to ensure Pakistan is well prepared for such crises.
KEYWORDS: Resource abundance, time price, Simon abundance index, inflation measurement, COVID-19 impact, Pakistan.
JEL: E31, C43, J21, O47.

This study assesses the impact of external shocks and exchange rate movements on prices. The main benefit of this granular analysis is its ability to capture heterogeneous impacts across different products and geographical areas, which is often overlooked in macro-level studies. The model includes four global shocks: global inflation, US industrial production, global food inflation, and global oil prices. Regarding domestic factors, exchange rate, inflation expectations, and inflation persistence are considered. The dependent variables are prices, including 356 items from the Urban Consumer Price Index (CPI), 244 items from the Rural CPI, and 110 items from the Wholesale Price Index (WPI), all measured monthly. The results show that global food prices have the most significant influence on both national CPI and WPI inflation, while global oil prices have the least impact on consumer and wholesale inflation in Pakistan. Domestically, the exchange rate shows the highest pass-through effect on inflation, with inflation expectations and persistence having comparatively lower impacts.
KEYWORDS: Exchange Rate; Global Shocks; Oil Price Shocks; Inflation; Prices; Pass-Through.
JEL: E31, Q41.

Foreign aid has been an essential source of external financing for developing countries, with the belief that it can foster growth in recipient nations. Specifically, the type of aid known as Program Aid is particularly important because it provides the funds needed to implement a reform agenda in the target area or sector. However, the literature shows that the relationship between foreign aid and economic growth is complex, and empirical findings are inconclusive, necessitating further research in this area. In this context, the present study employed an innovative triangular conceptual modeling (TCM) approach to assess the effectiveness of program aid for Pakistan. The goal is to analyze effectiveness both directly, through the reform process, and indirectly, through financing development spending or fiscal deficit. Results show that program aid has a significantly positive impact on economic growth. However, this positive effect becomes negative once the effect of fiscal deficit is taken into account, suggesting that program aid is mainly used to finance fiscal deficits rather than to improve efficiency in the country. Additionally, the findings reveal that the indirect effect of program aid on economic growth is substantially larger than the direct effect. The greater indirect effects imply that the primary objective of program aid is to meet budgetary requirements or to finance the government’s development spending.
KEYWORDS: Program Aid, Economic Growth, Triangular Conceptual Modeling Technique, IMF.
JEL: F35, O19, O40, F33.

Pakistan provides export financing schemes to support exports. This study examines two main schemes: one offered by the State Bank of Pakistan (SBP) through commercial banks, and the other by the Federal Bureau of Revenue (FBR). The study evaluates the performance of these schemes from the perspectives of commercial banks (as private entities) and exporters (as beneficiaries). While large exporters improve their export performance by utilizing these schemes, the lengthy process and the time lag between production and delivery can hinder exporters’ performance. The qualitative findings indicate that these export financing schemes mainly benefit large exporting firms, while medium and small enterprises are less likely to take advantage of them due to the complexities involved.
KEYWORDS: Export Financing, Export Facilitation, Rebate, Commercial Banks, Exporting Firms.
JEL: E31, Q41.

Sustainable development in the Global South faces a complex challenge, influenced by environmental, economic, and social factors, as well as issues like poor governance, political instability, and inequality. The literature emphasizes that institutions are crucial in shaping incentives and behaviors that drive development. Inclusive institutions foster sustainability by providing equitable opportunities, safeguarding property rights, and encouraging innovation, whereas extractive institutions—marked by unequal systems and a lack of basic liberties— hinder progress. This research examines how economic and political institutions affect sustainable development in 94 developing countries from 1990 to 2019. Sustainable development, defined as the ecological efficiency of human development, is measured using the Sustainable Development Index (SDI) introduced by Hickel (2020). Economic institutions are measured using two indicators: economic freedom and de jure economic globalization, while political institutions are evaluated via de jure political globalization, judicial independence, democracy, and civil liberties. The empirical analysis shows that all indicators of inclusive institutions positively influence sustainable development in the Global South. Moreover, democracy proved to be the most effective in promoting sustainability, while the effect of de jure political globalization was the weakest in terms of magnitude (though still statistically significant). These findings underscore the vital role of inclusive institutions in achieving sustainability, highlighting their capacity to balance development goals with environmental considerations. This study demonstrates that democracy enhances sustainable development more than economic liberalization in the Global South, challenging conventional policy priorities.
KEYWORDS: Economic and Political Institutions, Sustainable Development, Economic Freedom, Civil Liberties.
JEL: E02, Q01, O43.

The study examines the impact of foreign direct investment, human capital, and financial development on labor productivity, utilizing data from 2000 to 2019 and panel data from 180 economies. The estimation technique used in the study is GMM, which helps to solve the problems of endogeneity and unobserved heterogeneity. The findings indicate that foreign direct investment, human capital, and financial development have a positive and significant relationship with labor productivity. The square term of human capital also shows a positive relationship with labor productivity, indicating increasing returns. This study contributes to the literature by examining the roles of structural and financial factors using robust techniques. Furthermore, the study’s results offer important policy recommendations, suggesting that the government should invest in projects to develop education and financial infrastructure to achieve high productivity gains.
KEYWORDS: Foreign Direct Investment, Human Capital, Financial Development, Labor Productivity, Trade Openness, System GMM.
JEL: E02, Q01, O43.