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.