Moral Economy

Challenge to the ‘moral economy’

Mr. Zafar Masud (Chairman – Pakistan Banks Association and President & CEO – BOP) and Mr. Sultan Ali Allana (Chairman – HBL) emphasize the importance of the ‘moral economy,’ where societal norms influence economic behavior. Aligning economic practices with ethical standards is essential for improving Pakistan’s socioeconomic landscape.


Innovation for Pakistan’s Agriculture

Pakistan’s agriculture sector is not just a segment of the economy; it is the lifeblood that sustains the country’s populace and fuels its economic engine. With over 37 per cent of the labour force employed in it and its contribution of approximately 46pc to GDP — both directly and indirectly estimated by employing backward and forward linkages between agriculture and other sectors of the economy — agriculture’s significance cannot be overstated. It is a pivotal source of foreign exchange earnings, with a substantial delta as high as $15 billion in our current account, underscoring its role as a cornerstone of Pakistan’s financial stability.

Victims of our own narrative

Fix Fiscal Account to Tame Inflation

Contrary to the belief that inflationary pressures can be addressed through monetary policy alone, the role of fiscal account policy in managing inflation is being increasingly discussed. Global inflation has remained stubborn, despite unprecedented action by central banks, leading to a debate on the underlying causes of inflation and the effectiveness of conventional tools to tackle it. I believe fiscal policy is the main driver of inflation in Pakistan. Addressing the structural deficits in fiscal policy is critical for inflation to come down.

Victims of our own narrative

Victims of Our Own Narrative

Victims of Our Own Narrative – “Market knows everything best” is considered the most cogent of arguments by free-market supporters. This may be true in some instances but in most cases it’s unfounded, given the inherent imperfection of markets. While Chicago School orthodoxy says markets produce the best outcomes for society, behavioural economists insist that it’s humans who make markets. This means that humans can strive to improve their functioning.

Pakistan's Agriculture / Sustainable Agriculture

Sustainable Agriculture — Part II

Pakistan needs to look at possible actions which can help the country achieve sustainable agriculture and food security. All our actions should have the sole objective of lifting our productivity levels. Some suggested actions are as follows: First, solutions should be home-grown. Agriculture is the most dynamic of all the sectors in the country. But it is laced with more uncharted territories than any other sectors. It is also quite vulnerable to climate change.

Sustainable Agriculture Part I

Sustainable Agriculture — Part I

Pakistan is an agricultural economy, and it is important to reinforce the real contribution of agriculture to Pakistan’s GDP. While its direct weightage is approximately 23 per cent, its indirect contributions are in the north of 45 per cent. This is based on backward and forward links determined by the ADB between agriculture and other sectors of the economy, as calculated by the Bank of Punjab (BOP) research team in a joint project with PIDE and the Planning Commission.

Transforming small & medium businesses

Transforming the Lives of SMEs

The Small and Medium Businesses (SMEs) in Pakistan plays a pivotal role in the country’s economy. They are part of essential building blocks of any economy, which significantly contributes towards employment generation through entrepreneurship resulting into greater social good. With a diverse range of businesses such as Manufacturing, Services, and Agriculture, SMEs are the backbone of Pakistan’s entrepreneurial landscape. Small businesses are undoubtedly significant in terms of their ability to strengthen local communities.