This paper examines the temporal interdependence between gross domestic product and health expenditure per capita for Pakistan in an augmented Solow growth model suggested by Mankiw, Romer and Weil (1992) for the period of 1973-2001. This paper is an extension of the MRW model by incorporating health capital proxied by health expenditure to the augmented Solow model. Moreover, an openness variable is also included in the model in order to capture the effect of technological changes on growth. The paper employs co-integration, ECM methodology and several diagnostic and specification tests. The empirical findings show a significant and positive relationship between GDP and Health Expenditure, both in the long- and short-run.
KEYWORDS: Pakistan, GDP, health expenditure, income, spending, modelling.
JEL: N/A.

Pakistan as a multilingual country faces numerous problems in language planning in higher education. As educational standards in higher education decline, there are concerns about student difficulties in English and lack of required materials in Urdu, The research reported here is a nation wide survey of 2136 students, 121 Subject and English teachers of public and private sector colleges and universities from all the capital cities of Pakistan, as well as 63 parents who responded to the questionnaire. The survey examines the learner's background, attitudes to languages and motivational orientation, availability and quality of materials in different mediums, learner difficulties in English, provision of English support programmes, and language outcomes. Results point to the significant differences between private sector and public sector students in terms of socio-economic status, and other variables. The study recommends that public sector students be provided more state support by adopting an 'English for all policy', and strengthening the English programmes through a revision of courses, development of materials, and training of teachers so as to meet the students' learning and target needs.
KEYWORDS: Pakistan, language, higher education, access, English language teaching, Urdu, educationists.
JEL: N/A.

In the traditional sense, governments have predominantly funded social sectors. But in the face of limited financial resources and other constraints, governments have found it easier to formulate policies rather than to implement them. Thus the private sector has begun to play an increasingly important role both in the financing and in the provision of social services. However, neither sector can be relied upon completely to deliver comprehensive results independently. It seems apparent, therefore, that a public private mix of financing and provision will be the most sensible approach to achieve economic efficiency and equity in the provision of social services. Governance structures and degrees of progress towards governance goals vary widely and appear to be systematically related to the organisation, composition, location, and activity of each partnership. This paper highlights how a successful partnership can be evolved in the presence of synergy between partners; strong leadership; shared objectives; success in coalition building; appropriate change in governance structure; a proper legal framework; and building in of safeguards and outside patronage. It examines successful interventions of the public private partnership in the health sector between a private medical college in Abbottabad and a public hospital in Mansehra, both within the province of NWFP, Pakistan. This paper has seven sections: An overview; The Partners; The Process of Building a Partnership; The Model of the Partnership; Workings of the Partnership; Evaluation of the Partnership and finally, some conclusions.
KEYWORDS: Pakistan, health sector, PPP, nationalised institutions, private sector participation.
JEL: N/A.

The health sector in Pakistan is replete with multifarious problems. It is not responding to the needs of the masses in a way that would provide high-quality care to all in need. Despite the announcements our governments make about health care each year, it limits people’s life chances. That international financial institutions claim that state subsidies to health care create undesirable ‘ market distortions’ that benefit the rich is another contradiction faced by the health sector. In the name of greater equity and efficiency, they argue that users of primary health care services should pay user fees, even if they are from the impoverished class. These institutions have provided structural adjustment loans to remove short-term problems. This lending has not contributed to the improvement of health facilities. The state has significantly withdrawn itself from health matters: it only spent 0.7 % of GDP in 2000. According to the 1995-96 PIHS the private sector controls 80% of the health care provisions in Pakistan. Ongoing privatisation of hospitals is likely to strengthen the private sector further. In sum, the neo liberal medicine is not having the desired effect on the health status of the population
KEYWORDS: Pakistan, healthcare, adjustment, overall expenditure, health expenditures, household incomes.
JEL: N/A.

This paper examines the trends in marginal rates of return to various levels of education for paid employees and how rewards for additional investments at a particular level of education has changed over time. Although the findings are indicative of increasing returns at different educational levels (excluding Graduation) over the years, we find no evidence that additional investments at successive levels bring consistently higher returns as highlighted by certain previous studies in Pakistan. The changes in returns at the primary and pre secondary levels have been found to be miniscule, taking the time span into consideration. The paper has also examined the returns to education between males and females and across urban and rural areas in view of the large disparities that exist by gender and region. Our findings indicate that although the wage structure may be biased in favour of males, additional investments made in female education accrue higher returns in comparison to males. Moreover, higher education is better rewarded in the urban areas whereas medium of instruction is a significant indicator of earning differentials in the labour market.
KEYWORDS: Pakistan, education, labour market, investment, schools, educational profile.
JEL: N/A.

The twin problems of low school enrolment and high gender disparity have widely been addressed in the literature. In this paper we investigate the determinants of schooling of children overall and separately for boys and girls using primary data of rural households. The contribution of this paper lies in integrating the child schooling decisions of the households by rigorous econometric analysis. The empirical estimates based on the model point to certain findings. The first enrolment of children in schools is delayed and it is more severe for girls. There exists gender disparity in children’s schooling. The head of the household education significantly increases the probability of overall children’s schooling. It has a greater effect on boy’s schooling and does not matter in girl’s schooling. The head of household income has a slight impact on overall children’s enrolment but for girls it is significantly higher than boys. Parental education also significantly increases the probability of child’s schooling. Mother’s education exerts a much stronger effect of increasing school enrolment. The estimates of the gender specific determinants suggest that maternal education increases the likelihood of girl’s schooling enrolment than of boys. Higher per capita income of households and ownership of assets by households increases the probability of school attendance. Family size and household composition also plays a significant role. Children from large families are more likely to go to school but children from households with a large number of children (up to 15 years) are less likely to go to school. Similarly, children from households with larger number of children (in the age group of 5-15) are less likely to go to school. It is sibling size (in both age groups) which hinders the schooling of children, not the family size.
KEYWORDS: Pakistan, gender disparity, education, enrolment, human resources, agricultural productivity, poverty alleviation.
JEL: N/A.

Based on the Pakistan Integrated Household Survey (PIHS) 1998-99 the paper highlights the factors that influence the decision of married women in their participation/economic activities in rural Pakistan. Employing the probit model on 9427 observations it is found that married women in Sindh and Punjab are more likely to engage in economic activities than their counterparts in Balochistan and NWFP. Women’s age, family size and husbands working in agriculture have a significant positive effect on the involvement of rural women in economic activities. Household annual income, nuclear family system, number of children and husbands' literacy level and age have a strong negative effect. No significant relationships of education, migration status and the female being head of the household have been found.
KEYWORDS: Pakistan, rural, employment, gender, women, household, unemployment.
JEL: N/A.

Gordon de Brouwer (ed)., Financial Markets and Policies in East Asia, London: Routledge, 2002, ISBN 0-415-27388-9 When Thailand was forced to devalue its currency in July 1997, no one predicted the financial turmoil that would follow. Over the next two years, financial crises took a heavy toll on the economies of Indonesia, South Korea, Malaysia, the Philippines, Hong Kong, Russia and Brazil. Indeed, few developing countries emerged unscathed. Thus, it is hardly surprising that no event of the past fifty years has generated more calls for a reexamination of the institutions, structures and policies aimed at crisis prevention and resolution than the Asian financial crisis of 1997. This excellent volume moves beyond providing the now familiar story of the origins and impact of the crisis. Rather, the fourteen wellorganised chapters competently address three critically interrelated issues. Chapters 2 to 4 provide a concise discussion about the changing patterns of finance in East Asia. Chapters 5 to 7 document and assess the financial restructuring and liberalisation with particular focus on the five worst affected economies, including China. Chapters 8 to14 provide wide-ranging analyses of financial policies in the region, with special emphasis on monetary and exchange rate policy, including how they are related.
KEYWORDS: Book review, Asian finance markets, Asian financial crisis, 1997.
JEL: N/A.

M. Ashraf Janjua, History of the Slate Bank of Pakistan, Volume 111 (1977-88), Karachi, State Bank of Pakistan, 2003, pp. 790, Price: Rs.750 (US$30). If ever a history of development of institutions in Pakistan is written, the State Bank of Pakistan will occupy a central place in it. Of course the State Bank has a pivotal position in economic policy formulation and implementation in the country. Furthermore, the institution was founded and its basic processes laid down by men of integrity and vision and despite attempts at some stages of its evolution to denude and make it serve lesser purposes, the State Bank has managed to retain the dynamism and professionalism of its original wisdom. It is also worthwhile to note that the State Bank is probably the only institution to compile a well documented and comprehensive study of its evolution and performance "in the context of the changing political, institutional and economic milieu", as the State Bank governor points out in the foreword of the volume under review. The future historian of institutional development in Pakistan could not have asked for more from the premier institution of the country.
KEYWORDS: Book review, State Bank of Pakistan, financial sector, Pakistan, ministry, government, state.
JEL: N/A.

In an underdeveloped country, the state regulates not only the short- term performance of the economy but also its path of development. Such an overwhelming role of the state derives its justification from the very nature of underdevelopment itself. Economics and economists are usually concerned with policy, with a view to determining as to what policies are appropriate in a given economic situation to attain policy objectives such as economic growth, full employment, price stability, redistribution of income and wealth. But adopted policies are often not the policies that economists recommend as the best or even the second best. It is generally observed that vested interests and pressure groups compete for a greater share in the resources and only those policies have to be put into practice in a society which are adopted by all or a significant majority. The basis of decision-making is not economic factors alone and the influence of non-economic factors has been found more important in terms of compromising the interest of transparency as well as the system in almost all developing countries as against the developed countries1. Pakistan is no exception.
KEYWORDS: Pakistan, economy, political economy, fiscal policy making, theoretical framework.
JEL: N/A.