Journal of Economic Impact

Analysis of Green Energy on Environmental Sustainability Framework in Pakistan

Raja Kashif — 2025-10-26

The use of fossil fuels and the intense industrialization of Pakistan have led to the acceleration of environmental degradation, which increases the cost of health and climate susceptibility. The shift to renewable energy source, technological achievements, and evidence-based policy are necessary to ensure economic stability, forestry protection, and preserve human health. The paper examines the correlation between green energy and sustainability in Pakistan between the years 1990 and 2022 with the help of the ARDL estimation. The explanatory variables are the consumption of renewable energy, industrial output, the importation of technology, the involvement of labor, research and development, tourism, urbanization and non-renewable energy consumption. The dependent variables will be environmental degradation, growth in economy and population health. According to the results of the Model 1 (Environmental Sustainability Model), renewable energy, foreign direct investment, tourism, and technological innovation decrease the environmental degradation, and fossil fuel use and industrial activity increase it. According to Model 2 (Economic Sustainability Model), renewable energy, industrial production, investment, labor force participation, innovation, and tourism are the economic growth enablers, but non-renewable energy also plays a role in the short run. Model 3 (Social Sustainability Model) also shows that population health is enhanced by renewable energy, tourism, labor engagement, and innovation, and it is adversely affected by fossil fuels, investment, and industrial activity. The findings highlight why Pakistan needs to increase its solar, wind, and hydropower. The study is based on the 3Ps theory (People, Planet, Profit) and emphasizes that renewable energy could be adopted to improve the social well-being, decrease ecological stress, and stimulate the economic development in the long term.

Effects of IMF Financial Assistance on Economic Performance of Pakistan

Muhammad Imran Virk — 2025-10-25

Developing countries like Pakistan seek financial assistance in order to meet their deficits and economic habitual activities. IMF is one of the largest financial institutions for this purpose. This study is designed to assess “the role of IMF in the economic performance of Pakistan” over the time period from 1980 to 2020. The data has been taken from IFS, World Bank, and the State Bank of Pakistan. The Augmented Dickey-Fuller test has been used for unit root. The ARDL estimation technique has been used. Economic Performance Index used as dependent variable, whereas Foreign Direct Investment, Money Supply, Exchange Rate, Gross National Expenditure, and Terms of Trade have been taken as independent variables. IMF is treated as a dummy variable in this study. The result shows that the IMF has an adverse relation with the economic performance of Pakistan in both the short and long run. Foreign Direct Investment has positively influenced the economic performance in the short run but negatively in the long run. The exchange rate has negatively affected the economic performance in the short run but positively in the long run. The result also shows that money supply, gross national expenditure, and terms of trade are positively affected by the economic performance as well.

Towards Sensory Marketing: Impact of Multi-Sensory Cues on Consumer Buying Behavior Mediated by Emotional Response and Moderated by Store Environment Attributes

Mubashra Saman — 2025-10-27

The idea of how sensory cues impact consumers’ buying behavior towards bakery products has received little consideration in the past. However, there is little research related to how emotional state mediates the relationship between sensory cues and consumer buying behavior. This study aims to find out the impact of sensory cues on the buying behavior of consumers in retail settings. This study will help retail store managers make effective decisions related to choosing and applying sensory cues and selecting appropriate retail store attributes to create a unique shopping experience. To explain the relationship between the sensory cues and the buying behavior of consumers, the mediating variable Emotional State is used, and Store Environment Attributes is used as a moderating variable. Data is collected through a questionnaire from 200 bakery store customers using a convenience sampling technique from 2 cities: Faisalabad and Jhang, Punjab, Pakistan. For the analysis of the collected data, Partial Least Squares Structural Equation Modeling (PLS-SEM) is applied as the research is exploratory. Our findings provide a new understanding that both sensory cues and retail store attributes are necessary for positive buying behaviour of the customers. The study provides evidence to the retailers that to lead the customers toward positive buying behavior through sensory cues, they must put focus on their emotional state.

Fresh Eyes or Familiar Ties? Auditor Tenure and Its Impacts on Debt Markets

Zohair Farooq Malik — 2025-10-31

Investors rely of financial statements when making their investment decisions. Independent auditors are expected to enhance this trust by producing high-quality audits. The study examines the impact of auditor independence (measured through auditor tenure – categorized into short, medium, and long auditor tenures) on the cost of debt, with the moderating role of Big4 audit firms, using the data from non-financial companies listed at the Pakistan Stock Exchange. The Generalized Method of Moments (GMM) regression technique is applied as the data suffered from the issues of autocorrelation and heteroscedasticity. The results support the “fresh-eyes” argument by revealing a non-linear relationship between auditor tenure and cost of debt, as short and medium auditor tenures are associated with a lower cost of debt, reflecting enhanced auditor efficiency and improved audit quality; whereas, long auditor tenures increase the cost of debt, indicating a potential decline in auditor independence and objectivity over time. Moreover, the moderating effect of Big4 audit firms is significantly negative, suggesting that their reputation and audit quality mitigate information asymmetry and reduce financing costs. The findings provide valuable implications for regulators, policymakers, and firms regarding auditor rotation policies as well as the selection of reputable audit firms to ensure sustainable financial credibility and cost efficiency.

The Total Cost of Natural Resources, Depletion of Natural Resources, Alternative Energy, Agricultural Raw Materials, and CO2 Emissions

Muhammad Irfan Latif — 2025-11-03

Mineral resources are essential to our everyday lives, but are finite and can be depleted if not managed responsibly. Unfortunately, many natural resources have been exploited and depleted due to unsustainable mining practices and over-consumption. In order to alleviate such problems to achieve long-term sustainability, the importance of an equal distribution of resource rents, responsible management, and an ecologically friendly extraction approach should be applied. The paper presents the interaction between the segmentation of resources and the discharge of carbon dioxide in China since 1971 and 2020, where the moderating attribute is the consumption of alternative energy resources, importation of agricultural raw materials, and exports of goods and services. The various economic motives that are influential in the country are the total natural resource rents, dependence on other forms of energy, imports of raw material, natural resource depletion, trends in international trade, and general environmental degradation. This is because the outcomes of the results reflected unfavorable correlations of rents on natural resources, the adoption of alternative energy, agricultural imports, and emissions, which indicates that the enhancement of these regions would contribute greatly to the diminishing carbon emissions. On the other hand, the identified positive linkages between the depletion of resources, trade practices, and carbon emission reflect the fact that Warren-wide and combined policy actions are necessary to support sustainable development trajectories within China.

Informal Labor Market in Pakistan: Evaluating the Effectiveness of Government Relief Programs using Econometrics and Machine Learning Approach

Muhammad Ali — 2025-11-03

This paper provides a comprehensive empirical analysis of the efficacy of social safety nets within Pakistan's labor market, with a specific focus on periods of significant economic shock. Utilizing a mixed-methods approach, we combine household-level microdata from the Pakistan Social and Living Standards Measurement (PSLM) surveys with administrative data on major relief programs, such as the Benazir Income Support Program (BISP). Our research assesses the targeting efficiency, coverage, and welfare impact of these transfers on key outcomes, including poverty headcount, consumption smoothing, and labor force participation. The findings reveal a critical paradox: while these programs provide essential relief to documented segments of the population, a significant efficacy gap exists due to Pakistan's vast informal sector. A substantial proportion of the most vulnerable, informal workers, remain systematically excluded from formal relief mechanisms, severely limiting the programs' overall protective capacity. The study concludes that the structural constraints of informality are a primary determinant of relief program effectiveness. We therefore recommend policy reforms aimed at integrating informal workers into the social protection framework through innovative targeting and delivery mechanisms to enhance resilience against future economic crises.

Red Chili Consumers in Pakistan: Identifying Segments and Preferences as a Precursor of Competitiveness and Stakeholders’ Performance in Value Chains

Muhammad Talha Azeem — 2025-11-03

Pakistan's Red Chili value chains hold significant potential for driving socio-economic growth. However, this potential cannot be realized without addressing the challenges relating to competitiveness and stakeholder performance. A major obstacle is the lack of insight into consumer preferences for red chilies. By understanding these preferences, value chain actors can enhance their competitiveness and performance, ultimately boosting the sector's growth. Thus, this study aimed to reveal the value preferences of different segments of red chili consumers in Pakistan. Data were collected through an intercept survey of 180 red chili consumers in three major cities of Pakistan, including Karachi, Lahore, and Faisalabad. Collected data were analyzed using descriptive statistics, hierarchical cluster analysis, Mean ANOVA, and post-hoc tests for identifying consumer segments and their value preferences. Using preferences for various attributes of red chilies, the study identified three consumer segments labeled as traditionalists (45.6%), quality seekers (38.6%), and safety and marketing-conscious (15.8%). The identified consumer segments differed significantly in their desired quality attributes, consumption and purchase preferences, and socioeconomic composition. To improve competitiveness and stakeholders' performance, the study findings urge private and public stakeholders to understand and respond to the preferences of different consumer segments. The Red Chili value chain actors are needed to upgrade and align their practices with consumer requirements. To this end, the related public sector institutions can facilitate the red chili value chain actors in accessing the technical and financial resources needed.

Farmers’ Decisions on Sustainable Crop Residue Management: A Case Study from Punjab Province, Pakistan

Shoaib Akhtar — 2025-11-12

The sustainable management of crop residue is termed a win-win strategy for sustainable agriculture production and the abatement of carbon emissions from the agriculture sector. Therefore, it is essential to propose future policies on the promotion of sustainable crop residue management to contribute to a more bio-based circular economy. Nevertheless, there is a lack of understanding about the decision-making processes underlying the use of sustainable crop residue management at the farm level by farmers. The objective of this study is to understand the farmers’ decisions in terms of adopting sustainable and alternative crop residue management practices. For this purpose, a survey was conducted from three agro-ecological zones of Punjab, Pakistan, and a multivariate probit approach was employed to analyze factors affecting farmers’ decisions on the use of different practices. The results revealed that farmers were becoming more interested in using sustainable crop residue management practices despite a number of challenges. The majority of farmers are currently using crop residue for their animal feed and are willing to use it as a bio-fertilizer, also for energy purposes in bio-gas plants. These results hold true for a wide range of countries with notable spatial variations in livestock density, particularly for those with ambitions to use crop waste more sustainably and effectively. The findings of the study recommend that improving crop residue on-farm use requires a combination of appropriate crop residue management practices, such as a clean energy source, accurate and easily accessible information about the efficacy of crop residue management practices, and proper regulations and enforcement. To improve farmer participation, adequate extension services, training, and credit facilities are necessary to enhance the farmers’ capacity in reusing crop residues.