This paper aims to construct a bi-directional, financial liberalization index for Pakistan by considering various financial policy indicators (reforms). This study, by employing the principal component analysis method over a period of 1980–2018 (39 years), aims to determine the composite outcome in the case of developing a financial index. This study uses 14 financial policy indicators to investigate the degree of financial liberalization over a specified time period. The present study suggests a financial liberalization index for Pakistan considering the real-time change in the implementation process. The formulated index revealed that the recorded profitability of financial reforms was consistently high until 1998. Meanwhile, in the period from 1997 to 2003, the outcomes of financial reforms were surprisingly strong. Beyond 2004 and for the rest of the remaining years until 2018, the liberalization process recorded was comparatively slow. Thus, it was witnessed that all the key indicators, in the sense of regulation and liberalization, included determining the degree of financial liberalization. The consistency track of a liberalization index is a major focus of attention for policy makers, in order to capture the efficiency outcomes from various financial policy indicators, which were implemented beyond 2004. Furthermore, corporate risk in terms of better access to finance is also raised as a consequence of financial liberalization. Financial liberalization also resulted in a decrease in the cost of capital and improved the corporate governance.

| One of the fundamental postulates of economic development in developing and emerging economies is the alleviation of poverty through agricultural led growth. Pakistan being an agrarian in nature is striving its best to fight against poverty, unemployment and unequal income distribution. Although, Agricultural growth is considered an important instrument for alleviation in poverty, but still its proper measurement is scarce in studies. To examine and analyze the nexus between agricultural growth and poverty in Pakistan, the present study has been organized. Data on key variables including agricultural growth and poverty head count ratio are taken from different authentic sources, such as: Pakistan Economic Survey (PES), International Financial Statistics (IFS) and World Development Indicators (WDI). Ordinary least square (OLS) method is used to estimate the model. Empirical results of the study reveal that agricultural growth and other important variables of the study such as cash crops, livestock, fisheries and forestry are significantly affecting poverty head count rate in Pakistan. Thus, long-run agriculture growth programme in line with overall economic development targets of the country needs to be planned on operational grounds with strict implementation mechanism. It will enhance the tempo of agricultural growth towards poverty alleviation which will ultimately increase the speed of economic development in Pakistan. Furthermore, sub sectors of agriculture may be properly analyzed to find the potential of these sectors for income generation activities which will provide a solution to the key economic issues in the country to meet the sustainable development targets of United Nations.

It is common practice that central banks around the world must adopt an inflation targeting framework; based on the assumption that inflation could be reduced by increasing interest rates. On contrary, the theoretical literature and data-based evidences differ remarkably. The arduous attached in finding the true association and causation is the existence of multiple monetary transmission channels. Theoretical literature lists both monetary and non-monetary channels linking interest rate and inflation. However, most of the existing studies are focused on single equation model ignoring other parallel channels. This study is first of its kind where we have developed modified Peter and Clark (PC) algorithm of the Graph-Theoretic approach taking all the monetary and non-monetary channels to determine the causal nexus between monetary policy and inflation. The results show that, causality is running from interest rate towards inflation; suggesting a positive and significant long run relationship of interest rate with inflation in case of Pakistan. Furthermore, monetary policy have cost-side effects on inflation; however, the monetary policy becomes counterproductive whenever high interest rate is used to decrease cost push inflation. Therefore, there is need of serious rethinking about current monetary policy regime.JEL Codes - E4; E5; E42; E52

| Apart- from providing food to the massive population, agriculture sector contributes a big share to South Asian GDP and it also provides employment to the fast-growing population. Examining the sources of agriculture productivity has not attained much importance related to SAARC countries. Moreover, the studies on the role of agriculture productivity in case of the South Asian region are limited to individual countries. Due to the important role of agriculture productivity in the world’s economy, it is imperative to analyze the sources of agriculture productivity of the SAARC countries. This endeavor examines the impact of financial development on agricultural productivity in case of SAARC countries for the period of 1996 to 2019. Moreover, this study introduces trade openness, human capital, and income as important control variables of agriculture value-added. To serve this purpose, this study utilizes CS-ARDL approach. The results of long-run estimates show that financial development, income, trade openness and human capital are important factors explaining agricultural productivity. Moreover, the study finds an inverted-U shaped nexus between financial development and agriculture productivity. The results of this study have great policy implications for SAARC countries.