By applying the wavelet tool, this study examines the effect of foreign direct investment (FDI) on pollution in China, for the period 1982 to 2016. Carbon dioxide and sulfur dioxide emissions are used as pollution variables. The results reveal that FDI positively affected pollution at high frequency (short term) during the 1980s and after 2000, and at low frequency (long term) but not at medium frequency (medium term) for the entire time period. It demonstrates that FDI increases pollution both in the short and long term, but not in the medium term. It indicates that FDI has created pollution havens in China. For robustness analysis, spectral causality test was applied. The results of this causality test indicate that FDI causes CO₂ emissions both in the short-run and long-run. This suggests that in China FDI predicts CO₂ emissions. Thus, stringent environmental rules are required to restrict the inflows of foreign dirty industries in China.

The paper examines the impact of terrorism on economic growth in Pakistan. Channel variables, such as foreign direct investment (FDI), domestic investment, and government spending, through which terrorism influences economic growth, are identified. For empirical analysis, annual data for the period 1972–2014 are used, and a structural model is estimated using the generalised method of moments (GMM) estimation approach. The results reveal that (1) the impact of terrorism on FDI and domestic investment is significantly negative, whereas the impact on government spending is significantly positive and (2) the net effect of terrorism on economic growth is negative. One per cent increase in terrorism reduces FDI by 0.104 per cent, domestic investment by 0.039 per cent and economic growth by 0.002 per cent. To increase economic growth more resources must be allocated to improve law and order. To attract foreign investment, complementary domestic investment must be increased.

The availability of consistent and cheap energy is key to a sustainable economy. The challenge of cheap, clean, and sustainable energy supply is faced by all countries. Pakistan is an energy starved country and is trying to overcome its energy woes by installing different types of energy plants under the massive investment of China Pakistan Economic Corridor (CPEC). This paper attempts to determine the suitability of existing power plants installed under the umbrella of CPEC in Pakistan. By considering four different types of power plants, i.e., Coal, Hydro, Solar, and wind, with four essential criteria of Technical, Economic, Life Quality, and Socioeconomic and 11 sub-criterias, the appropriate model has been formulated consisting of goals, criteria, sub-criteria, and alternatives. The analytical network process approach has been applied that uses the principle of multi-criteria decision making to rank and evaluate the four alternatives of electricity generation. The quantitative secondary data were collected from the governmental organizations and international research publications. The results show that hydro power plants are the best source of electricity generation followed by wind, solar, and coal. The proposed decision framework can be used for formulating policies aiming at low cost, clean, and secure energy generation.

The paper estimates solar radiation in the Southern areas of Pakistan using the climate data of thirty years (1981–2010) for 25 meteorological stations located in the three provinces of Pakistan, i.e., Baluchistan, Punjab, and Sindh. For this purpose, five different radiation models are designed: Sunshine hour-based model, Temperature-based model, Cloud-based model, Meteorological parameters-based model, and Meteorological and Geographical Parameters-based Model. The forecasting efficiency of these models is evaluated using mean predicted errors and Theil inequality coefficient. The results reveal that the Meteorological and Geographical parameters-based models are the most accurate methods for estimating solar radiation in Pakistan. Forecasting efficiency results show that the estimates of solar radiation of all the models is much better for Baluchistan as compared to Punjab and Sindh.

Pakistan and Malaysia have a significant bilateral economic relationship. The Pakistan–Malaysia Free Trade Agreement (FTA) was signed in 2007, and was implemented in 2008. Pakistan’s volatile exports to Malaysia never achieved a sustainable period of growth. Trade balance has not achieved significant changes even after 9 years of implementation of the agreement. With this backdrop, this study first quantifies the current FTA between Pakistan and Malaysia and then suggests changes that could be made to improve the outcome for Pakistan. A new global economic trade model is adapted to include more detailed information on Pakistan’s labor and household groups into the Global Trade Analysis Project (GTAP) database. This allows for a more detailed analysis of the impact of the FTA on Pakistan at the household level. The results show that there is win–win scenario for both Pakistan and Malaysia if both are able to renegotiate the current FTA to get the same tariff concession as awarded to each other’s trading partners.