IDEAS home Printed from
   My bibliography  Save this paper

Income, Money and Prices in Pakistan: Trends and Interrelationship


  • Husain, Fazal
  • Abbas, Kalbe


This paper attempts to look at the trends in income, money, and prices in Pakistan over the years. In addition, we also look at the components of, as well as interrelationship among, these variables. Annual data from 1949-50 to 1998-99 are used and the period is further divided into five decades. The analyses show a greater expansion in these variables in the 1970s. However, these expansions can be attributed to phenomenal expansions in prices. Real income, on the other hand, improved marginally. Real income expanded significantly in the 1960s and remained stable till the 1980s but significantly declined in the 1990s. This is an alarming situation and requires suitable remedial measures. Similarly, the analyses show a significant decline in NFI in the 1990s. In fact, it has been negative for the last four years indicating capital outflow from the country which is also alarming. The analyses also indicate a significant difference between measures of money, M1 and M2, in the 1990s due to the opening of foreign currency deposits. The opening of foreign currency deposits has also affected the demand deposits and there seems to be shifting of funds between the two deposits. Finally, the correlation analyses indicate a little role of money in changing income as well as prices. On the other hand, money seems to be significantly affected by nominal income, particularly by three years back level of income. Regarding price, it seems to have a small association with money.

Suggested Citation

  • Husain, Fazal & Abbas, Kalbe, 2000. "Income, Money and Prices in Pakistan: Trends and Interrelationship," MPRA Paper 5033, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:5033

    Download full text from publisher

    File URL:
    File Function: original version
    Download Restriction: no

    Other versions of this item:

    More about this item


    Income; Money; Prices; Pakistan; Trends; Relationship;

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:5033. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.