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Pakistan is one of the growing countries that relies a lot on debt because of less tax revenue and more spending. Government debt is a significant economic issue in Pakistan. To solve this situation, we must look at the reasons behind Pakistan's huge government debt. Studies in the past have mostly looked at the connections between government debt and economic growth, the debt-to-GDP ratio and economic growth, and a few other general debt-related problems. Time series data techniques are used in this paper to look at how macroeconomic factors affect government debt from 1980 to 2021. The ARDL approach results show that fiscal deficit, balance of trade, government spending, debt service, and currency exchange rate all have a strong positive link with government debt. However, the relationship between fiscal deficit, debt service, and currency exchange rate to government debt is positive and significant in both long and short terms, whenever government spending has only a short-term effect and balance of trade has a long-term on the government debt. [ABSTRACT FROM AUTHOR]

Present research investigates about the effectiveness of a board of directors affect a company's performance. The data set comprises of non-financial firms trading on PSX spans from 2011 to 2021. The study utilized Return on assets (ROA) and return on equities (ROE) as a measure of performance. Board size, board independence, CEO duality, frequency of board meetings, and board skills are independent variables. Data were analyzed using two-step dynamic panel systems (Sys-GMM), correlation analysis, and multicollinearity diagnostic tests. The study's empirical findings showed that the firms' performance is significantly impacted by Board Size, Board Independence, and CEO Duality. The detrimental effects of BS, BIND, and CEO duality on the performance of companies are reported. Results on the frequency of Board meetings, however, indicate a negligible effect on both performance indicators. Firm age and leverage had a large impact on the performance. Although the size of the firm does not affect on firm performance. The Agency theory, stewardship theory, stakeholder theory, and resources dependency theory were taken into account for testing the hypothesis. The study provides insight into how corporate governance practices affect firm performance from the perspective of Pakistani non-financial firms for academics and policymakers. The study's conclusions have some ramifications for Pakistan and other emerging nations. The same study can be repeated by taking Pakistan's financial sector into account and comparing the performance of financial and non-financial enterprises. [ABSTRACT FROM AUTHOR]

This study investigates the capital structure decisions in presence of asymmetric information. It attempts to capture the effect of asymmetric information on capital structure by utilizing the equity data of 280 firms listed at Pakistan Stock Exchange (PSX), comprising of 155 firms from agriculture-allied sectors and 125 firms from other non-financial sectors for 19 years from 2000 to 2018. This research finds that asymmetric information shows a significant impact on capital structure decisions of the firms and plays a significant but highly negative role in agriculture-allied firms as compared to those of other non-financial firms. The study concludes that asymmetric information prevails in manufacturing firms working in Pakistan. It further suggests that managers of the firms prefer debt instead of equity financing to mitigate the effect of asymmetric information [ABSTRACT FROM AUTHOR]

The main purpose of the study is to check the influence of cash holding and corporate governance on firm's performance, while taking corruption as a moderator. Moreover, leverage (Debt to Equity), firm size and tangibility have been incorporated as control variables. To check the empirical status of the relationship, the data of 70 nonfinancial firms and for 12 years (2008-2019) have been gathered. After fulfilling, the required assumptions, the descriptive statistics and inferential statistics have been applied. As panel data has been used, so pooled regression has been run to check the empirical status of the hypotheses. The results are depicting that cash hold and corporate governance influence the firm's performance significantly and positively. Corruption also affects the firm's performance. Moreover, the corruption is showing moderating impact in relationship of cash holding and corporate governance with firm's performance. The results of the study are useful for the concerned laws enforce institutions to focus on corruption so that the effect of corporate governance and cash holding on firm performance may be enhanced. Limitations and future directions of the study have also been discussed. [ABSTRACT FROM AUTHOR]

This study utilized the OLS and Quantile regression approach to investigate the relationship between stock prices and exchange rate. Monthly data of exchange rate and stock market of Pakistan, China, Russia and Turkey from March, 2003 to July, 2017 have been used. For data of stock market major stock indices are used and currency exchange rate of country with respect to US dollar are used. The paper checked the stationarity of the series through ADF test as well as PP test and Engle & Granger to check the long run relationship. It is observed that none of the country exhibit long run equilibrium between exchange rate and stock prices. Results are same under two different methods of ordinary least square and Quantile regression. Both models show that coefficient of China is negative, which support the presence of portfolio balance effect in China. Results demonstrate that stock prices (SP) and exchange rate (EX) have asymmetric relationship as coefficients vary under different quantiles. [ABSTRACT FROM AUTHOR]

The purpose of this research is to evaluate the role of the Executive Risk Management Committees (ERMCs) in the risk management framework for the banking industry of Pakistan. Qualitative approach was used to address the research question of this study. In depth interviews were conducted from the CROs/Heads of Risk, Heads of Market Risk and Heads of Credit Risk of commercial banks of Pakistan. The results of the study show that the involvement of Asset-Liability Committee and Credit Risk Committee is very crucial in each phase of the risk management process. Moreover, the results show that the critical oversight of the market & Liquidity risk management process stages e.g. identification, assessment, monitoring & controlling is done by the ALCO. The study recommends that the ERMCs (ALCO and CRC) should analyze the projects using a holistic view of risk rather a silo view so that each committee can incorporate the effects of all kind of risks inherent in the projects and can give a better evaluation of the proposals to the BRMC. [ABSTRACT FROM AUTHOR]

Previous studies at macro level resultantly favor the financial liberalization and growth of a country. On the other side the studies conducted at the micro level show mixed results and there is a dearth of literature for accepting/rejecting the notion of financial liberalization at the micro level. The present study examines the impact of Financial Sector Reforms on the Investment of Manufacturing Sector listed at Pakistan Stock Exchange. A unique index for measuring the Financial Liberalization is developed obtaining the data from Financial Sector Assessment Progress Review Report (1991-2004) and Economic Survey of Pakistan (2005-2014). The data for manufacturing firms is extracted from Balance Sheet Analysis published by State Bank of Pakistan. The sample includes the companies that remained listed at Pakistan Stock Exchange from 1993 to 2014 in sample. Separate analyses were made on different manufacturing sectors that includes Textiles, Food, Chemicals, Other manufacturing, Motor Vehicle, Fuel & Energy, Communication, Refined Petroleum, Paperboard, and Electrical Machinery. The study utilized descriptive analysis and fixed effect model on the panel data of two hundred and ninety four (294) firms in GRATEL. Amongst different industries the investment level of textile sector is increased whereas, food and non metallic minerals do not improve much. Furthermore, upon the basis of results the communication and transport sector require attention towards liquidity, risk, and growth to achieve benefits for improving their investment function. [ABSTRACT FROM AUTHOR]

Financial liberalization is a process that involves the adoption and implementation of various reforms in the financial sector of the country and it is imperative to measure the level of liberalization at different time period. The aim of this study is to construct a financial liberalization index (FLI) for Pakistan employing principal component method over a period of 24 years from 1991 to 2014. The present study is an attempt to improve the financial liberalization index formation by considering the real time change in implementation process. However previous studies Chowdhury (2006) and Amaira and Amaira (2014) considered single entry for one reform. The index prefigures the degree of financial liberalization over a given time period. The formulated index reveals that the process of financial liberalization accelerated from 1998-2003, for rest of the years the pace remained sluggish. [ABSTRACT FROM AUTHOR]