HIGHER
EDUCATION
COM
MISSIO
N

2

3

Curriculum of a subject is said to be the throbbing pulse of a nation.
By looking at the curriculum one can judge the state of intellectual development and the state of progress of the nation. The world has turned into a global village; new ideas and information are pouring in like a stream. It is, therefore, imperative to update our curricula regularly by introducing the recent developments in the relevant fields of knowledge.
In exercise of the powers conferred by sub-section (1) of section 3 of the Federal Supervision of Curricula Textbooks and Maintenance of
Standards of Education Act 1976, the Federal Government vide notification no. D773/76-JEA (Cur.), dated December 4, 1976, appointed University Grants Commission as the competent authority to look after the curriculum revision work beyond class XII at bachelor level and onwards to all degrees, certificates and diplomas awarded by degree colleges, universities and other institutions of higher education.
In pursuance of the above decisions and directives, the Higher
Education Commission (HEC) is continually performing curriculum revision in collaboration with universities. According to the decision of the special meeting of Vice-Chancellors’ Committee, curriculum of a subject must be reviewed after every 3 years. For the purpose, various committees are constituted at the national level comprising senior teachers nominated by universities. Teachers from local degree colleges and experts from user organizations, where required, are also included in these committees. The National
Curriculum Revision Committee for Economics in its meeting held in
April 13-14, 2006 at the HEC Regional Centre, Karachi revised the curriculum after due consideration of the comments and suggestions received from universities and colleges where the subject under consideration is taught. The final draft prepared by the National
Curriculum Revision Committee duly approved by the Competent
Authority is being circulated for implementation by architectural institutions.
PROF. DR. SYED ALTAF HUSSAIN
Member (Acad/R&D)
August 2006
4

STAGE-I
STAGE-II STAGE-III STAGE-IV
CURRI. UNDER
CONSIDERATION
CURRI. IN DRAFT
STAGE
FINAL STAGE FOLLOW UP
STUDY
COLLECTION OF
REC
APPRAISAL OF 1
ST
DRAFT BY EXP. OF
COL./UNIV
PREP. OF FINAL
CURRI.
QUESTIONNAIRE
CONS. OF CRC. FINALIZATION OF
DRAFT BY CRC
INCORPORATION
OF REC. OF V.C.C.
COMMENTS
PREP. OF DRAFT
BY CRC
APPROVAL OF
CURRI. BY V.C.C.
PRINTING OF
CURRI.
REVIEW
Abbreviations Used:
EXP. Experts
COL. Colleges
UNI. Universities
PREP. Preparation
REC. Recommendations
5
IMPLE. OF
CURRI.
BACK TO
STAGE-I
ORIENTATION
COURSES

6

The Higher Education Commission (HEC) held several meetings to prepare curriculum for BS and MS in Economics. The Final meeting of
National Curriculum Revision Committee (NCRC) was held from 13-15
April 2006 at HEC Regional Centre, Karachi to prepare curriculum of
Economics for B.S. Honors (4 years) and MS Honors. (1
1/2
- 2 years) programmes. The following experts participated in the meeting:
1. Prof. Dr. M. Aslam Chaudhry,
Chairman,
Deptt. of Economics,
University of the Punjab, Lahore
2. Dr. Pervez Zamurrad Janjua,
HEC, Foreign Faculty Experts,
International Islamic University,
Islamabad
3. Dr. Imran Sharif Chaudhry,
Department of Economics,
Bahauddin Zakriya University,
Multan
Member
Member
4. Dr. Hafiz M. Yasin,
Associate Professor,
International Institute of Islamic Economics,
International Islamic University,
Islamabad
Member
Professor,
Institute of Development Studies,
NWFP Agricultural University,
Peshawar
Dr. Member
Professor,
Department of Management Sciences,
COMSATS Institute of Information Tech.
Lahore
7. Mr. Bashir Ahmed Khilji, Member
Department of Economics,
Government College University,
Faisalabad.
Assistant Professor,
Department of Economics,
Allama Iqbal Open University,
Islamabad
7

Professor,
University of Management & Technology,
Garden Town, Lahore
Chairman,
Department of Economics,
Gomal University, D.I. Khan
11. Prof. Dr. Muhammad Nawaz Chand,
Professor, Department of Economics,
Shah Abdul Latif University,
Khairpur
12. Prof. Dr. Marhab Qasmi,
Department of Economics,
Member
Member
University of Sindh,
Jamshoro
13. Syed Mohammad Arif,
Associate Professor,
Department of Economics,
University of Balochistan, Quetta
Member
14. Dr. Ahmed Nawaz Hakro, Member
Professor,
Quaid-i-Azam University,
Islamabad
15. Prof. Dr. Asandas Manwani,
Department of Management Sciences,
IBA, Sukkur
Naeem-ur-Rehman Member
Professor,
Department of Economics,
University of Peshawar, Peshawar
17. Dr. Heman D. Lohano,
18.
Associate Professor,
Department of Agriculture Economics
Sindh Agriculture University, Tandojam
Muhammad Nadeem Hanif,
Joint Director,
Research Department, State Bank of Pakistan,
Member
Karachi
8

19. Mr. Aneel Salman,
Lecturer,
Forman Christian College, Gulberg,
Lahore
Member
Deptt. of Agricultural Economics,
University of Arid Agriculture,
Murree Road, Rawalpind
21. Mr. Asim Iqbal,*
Lecturer,
National College of Business Admn.
& Economics, Lahore
22. Dr. Rauf A. Azhar,*
Head Department of Economics,
Member
Member
University of Central Punjab, Lahore
23. Prof. Muhammad Ashraf Janjua,*
Senior Fellow,
College of Business Management, Karachi
24. Dr. M. Siddique Javed,*
Department of Agricultural Economics,
University of Agriculture, Faisalabad
Member
Member
25. Dr. Abid Hamed,*
Senior Assistant Professor,
Member
Department of Economics,
Fatima Jinnah Women University, Rawalpindi
26. Prof. Dr. Shafiq-ur-Rehman,
Chairman,
Department of Economics,
University of Karachi, Karachi
Member/Secretary
The meeting started with recitation from the Holy Quran by Dr. Hafiz M.
Yasin. Prof. S. M. Iqbal, Director, HEC, Karachi, welcomed the participants. He informed the participants that Prof. Dr. S. Ali Sawar Rizvi,
Convener, preliminary NCRC meeting (for economics) was not feeling well, therefore, he could not participate in the final meeting. The house unanimously elected new Convener, Dr. Muhammad Aslam Chaudhry,
Professor and Chairman, Department of Economics, University of the
Punjab, Lahore. Thereafter, the participants introduced themselves.
The NCRC had a detailed discussion on various aspects pertaining to structure of programmes, contents of courses and outcomes of the new programmes. After deliberations, the committee unanimously approved
9

B.S. Honors (4-years) degree program and M.S. Honors program (1
1/2
- 2 years) in Economics.
The participants acknowledged the efforts of Dr. M. Aslam Chaudhry,
Convener and Dr. Shafiq-ur-Rehman, Secretary for coordination and developing consensus on different issues, upgrading and bringing the programmes to international standards. The committee also acknowledged the services of Prof. Dr. S. Ali Sarwar Rizvi for coordinating and formulating the first draft of the programmes. The committee also thanked Malik Ghulam Abbas for providing all facilities and good hospitality and conducive environment for the meeting. At the end, the committee approved that efforts should be made to implement new curriculum. The committee also recommended pre-requisites to implement the new programs, which are given at the end.
_____________________
10

The main purpose is to achieve the highest possible standards of education, teaching and research in economics. More specific goals are:
1. Encourage intellectual development and scholarship in economics.
2. Impart sound theoretical and applied knowledge of Economics.
3. Develop awareness in students to prepare themselves for national and international challenges.
4. Develop an ability in students to become effective independent researchers and learners.
5. Develop curriculum as per market needs and demand of institutions and society; considering the changing global and national requirements.
6. Prepare students to enhance knowledge and welfare of the society.
11

1. The programme will be of eight (8) semester’s duration with 130 credit hours. However, a student must take 63 compulsory credit hours in economics.
2. There will be two entry points. First, students will be admitted after
F.A/F.Sc. in semester-I. Second, in semester-V the students with a
B.A/B.Sc. will be enrolled with deficiency courses. Special courses will be offered for these students to make up their deficiencies.
3. 1
1/2
– 2 years (3 to 4 semesters) programme of MS (Honors) equivalent to M.Phil. in Economics, which will be offered after passing 4 years BS programme.
st
Course
No.
ECON 101 English-I
ECON 102 Fundamentals of
Economics
ECON 103 Islamic Studies
Hours
3
No
Subject Credit
Hours
ECON 106 English-II
ECON 107 Pakistan Studies
4
3
ECON 104 Mathematics-I
ECON 105 Optional (Non economics)
3
3
3
ECON 108 Principles of
Microeconomics
ECON 109 Mathematics –II
ECON 110 Optional (Non economics)
nd
3
3
3
ECON 201 English-III
ECON 202 Principles of
Macroeconomics
ECON 203 Introduction to Computer
System
ECON 204 Statistics-I
Hours
3
Hours
ECON 206 English-IV 3
3
Pakistan
208 3
3 Optional (Non economics)
3
3 3 economics) economics)
12

rd
ECON 301 Intermediate
Microeconomics
ECON 308 Development
Economics
ECON 303 Mathematical
Economics
ECON 304 Public Finance
Hours
3 ECON 306 Basic Econometrics
3
3
ECON 307 Monetary Economics
Macroeconomics
Optional( nonecon/Business)
Hours
3
3
3
3
(economics) econ.)
th
Course
No.
ECON 403 International Trade theory
ECON 309 Research Methodology
ECON 402 Basic Econometrics II
ECON 470 Islamic Economics*
(Opt). / Econ. (Optional)
Hours
3
3
3
3
3
No.
Subject Credit
Hours
6 ECON 410 Research Project or
Internship Report or
Seminar in Applied
Econ. Or Research
Paper.
Optional (non-econ.)
ECON 409 Financial Institutions &
Markets
(Optional)
3
3
Optional; may be made compulsory on availability of faculty.
•
All the above courses are compulsory, unless mentioned therein .
Total Credit Hours for BS Economics = 130
Total Credits in Economics = 63
13

Sociology
General Equilibrium and Welfare
Economics
Geography Advanced Mathematical Economics
International Relations
Political Science
Advanced Econometrics
Comparative Economic Systems
Applied Economics and Computer
Application Computer Applications
Journalism Agricultural Economics
Health & Physical Education Project Appraisal and Investment Analysis
Mathematics Islamic Economics* (May be made compulsory; subject to availability of faculty)
Business Management
Business Law
Environmental Economics
Operations Research
Business Finance Advanced Econometrics
Statistics
14

(Four Years Program)
Nature, scope and importance of Economics, Microeconomics vs.
Macroeconomics, Scarcity and choice, Opportunity cost, Factors of production, Production possibility frontier.
Concepts of demand and supply, Laws of demand and supply, Market equilibrium, Shifts in demand and supply curves, and market equilibrium.
Concept of elasticity, Price elasticity of demand, Income elasticity of demand, Cross Elasticity of Demand, Price elasticity of supply, Application of elasticity.
Consumer behavior, Preferences, Utility function, Laws of Increasing and diminishing marginal utility, Law of Equi-marginal utility.
Factors of production and their rewards, Total, average, and marginal products, Laws of returns, Cost of production, Total, average, and marginal costs, Total, average, and marginal revenue. Concept of profit maximization/Cost minimization.
Perfect competition & imperfect competition: assumptions and
Price/Output determination.
Concepts of national income, GDP & GNP, Real vs. nominal GNP, NNP,
NI, PDY, Saving and Personal Consumption.
Concept of inflation, unemployment, Balance of payment, Exchange rate and Business cycles. Monetary Policy and Fiscal Policy and their role in the economy.
15

Reference
1. Michel Parkin. 2004. Economics, 5 th
Ed., Addison Wesley.
2. Paul A. Samualson and W.D. Nordhaus. 2004. Economics, 18 th
Ed.,
McGraw Hills, Inc.
3. John Sloman, Economics (Latest edition).
4. Miller. Microeconomic Theory (Latest edition).
5. Lipsey and Crystal. Economics (Latest edition).
Overview of microeconomics, Consumer, firm, and market, Laws of demand and supply, Market equilibrium, Shifts in demand and supply curves, and market equilibrium. Price elasticity of demand, Income elasticity of demand, Price elasticity of supply, Application of elasticity.
Consumer’s problem, Utility theory, Laws of diminishing marginal utility and equi-marginal utilities, Indifference curves, Budget constraint.
Law of diminishing returns, Increasing, decreasing, and constant returns to scale, Forms of business organization.
Production function. Revenue function, Cost function, Profit maximization,
Cost minimization. Demand function for factors of production, Supply function of output. Short-run and long-run cost function.
Market structure, Perfect and imperfect competition, Monopoly, duopoly,
Oligopoly, Monopsony, duopoly, Oligopoly, Monopolistic competition.
Introduction of factor pricing. Marginal productivity theory.
General Equilibrium and welfare, edge worth box diagram, Preto-optimility etc.
Books Recommended
1. Gragory Mankiv. 2001. Principles of Economics. Dryden Press.
2. Samulson and Nordrons. 2004. Economics. McGraw Hill. Inc.
3. McConnel and Bruce, Principles of Economics. Latest edition.
4. Lipsey and Goerant, Principles of Economics. Latest edition.
16

Definition of macroeconomics, Brief account of the development of macroeconomics after the World War-II, Concept of business cycles: Boom and
Depression, Concepts of Inflation and Unemployment, Macroeconomic variables and their mutual relationship, real and nominal variables.
Definition and concept of national income, Measures of national income:
Gross Domestic Product (GDP) and Gross National Product (GNP), GDP at factor cost and at market prices, concept of depreciation and NNP,
Personal Income and Disposable Income etc., Different methods of computation of national income: Product, Income and Expenditure approaches, Circular flow of income, Real versus Nominal income, GNP deflator, Per capita income and standard of living, Study of Pakistan
Economic Survey (latest).
The concept of models as abstract representation of the real economy, closed and open economy models, Concept of aggregate markets:
Product, Money, Labor and Capital markets, Components of aggregate demand: Consumption, Saving and Investment (to be explained with simple linear functions), Government expenditure.
The Keynesian model for a simple two-sector economy, injections into and leakages from the economy, inflationary and deflationary gaps, Equilibrium of aggregate demand and supply: the concept of multiplier and accelerator, concepts of full-employment and under employment.
Definition, forms, functions of money, Central Bank and its functions, the role of State Bank of Pakistan, Commercial banking, Demand for money: the Quantity Theory of money, Inflation: measurement and impacts, causes of inflation and remedies, Monetary policy: brief introduction.
Sources of public revenue and various forms of taxes, Major heads of public expenditure, Concept of budget deficits and sources of filling the gaps, deficit financing, study of the Federal budget of Pakistan (latest) and
Provincial/ Local government budgets (relevant areas). Fiscal policy: meaning and objectives.
Concept of imports and exports, Theory of absolute and comparative advantage, custom duties, Currency exchange rates, and Balance of
Payments: causes of deficits in BOP of Pakistan and remedial measures, the problem of external debt.
17

Books Recommended
1. Mankiw, Gregory – Principles of Economics, 2 nd
Edition, South-West
Publishers (2001).
2. Parkin, Michael - Macroeconomics, 7 th
Edition, Prentice Hall (2004).
3. Miller, R.L. – Economics Today: The Macro View, Addison Wesley
(2005).
4. Pakistan Economic Survey (current issue), Economic Advisor Wing,
M/o Finance, Govt. of Pakistan.
Economic Development vs. economic Growth, Trickle down effect.
Characteristics of developing countries. Methods to measure economic development: Human Development Index, the importance of saving, investment and technological progress in economic development, the state of Pakistan economy viz-a-viz developed economies.
Role of natural, human, capital resources and infrastructure in economic development, Role of social factors: health, education and training in accelerating economic growth.
Importance and problems of agriculture, industry, human capital, transport and communications sectors, the role of public policies in solving problem of inflation and unemployment.
Role of commercial and central banks in resource mobilization, growth of banking sector, nationalization and privatization of banks, role of monetary policy in promoting economic growth, Inflation in Pakistan: causes and remedies, Islamic banking in the Pakistan: issues and prospects.
Public revenues and expenditure, budget formulation and fiscal policy, management of public debt in Pakistan.
Role of foreign trade in economic growth, Export-promotion and Import substitution policies, terms of trade, BOP problems, role of remittances and foreign assistance in Economic Development of Pakistan.
Books Recommended
1. Kh. Amjad Saeed, (latest), ”The Economy of Pakistan”. S.A. Salman
Publications.
18

2. Vaqar Ahmad & Rashid Amjad, The Management of Pakistan’s
Economy. Oxford University Press, Karachi.
3. Pakistan Economic Surveys, Published by Government of Pakistan.
(Latest issues).
4. Latest Annual Report of State Bank of Pakistan, and CBR year books.
5. Chaudhary M. Aslam, Human Resource Development.
Microeconomics: Comparison with other Branches of Economics. An
Overview of Microeconomics Topics, Consumer’s Decision, Markets,
Economic Models. Development of the Economic Theory of value.
Production, Cost and Welfare. Cost Minimization, Introduction to
Maximization of a functions. Functions of several variables & their optimization. Implicit functions. Derived Demand. Game Theory.
Axioms of Rational Choice. The utility function, Arguments of utility function. Indifference curves and Marginal Rate of substitution (MRS).
Indifference curves and Transitivity. Convexity of Indifference curve. An alternative derivation: Marginal utility, MRS. Concepts of Perfect substitutes and perfect complements. Non-homothetic Preference.
Consumer’s equilibrium. Income & Substitution effects: Hicksian
Framework and Slutsky equation.
Revealed Preference and the Substitution effect. Indirect utility function & its derivation.
Market demand curves. Types of demand curves. Short Run and Long
Run analysis: Elasticity and relationships among elasticities of demand.
Theoretical issues in Market demand analysis. Implication of Elasticities and Problem Solving Approach. Identification of Inferior goods, Giffin goods and normal goods.
The Concept of Production Function; how to Choose Variables. Variation in one input. Isoquant Maps and the rate of technical substitution. Returns to scale. The elasticity of substitution. Some common production functions. Technical progress. Equilibrium of the firm. Cobb Douglas
Production function. CES Production Function. Translog Function.
Definition of costs. Cost functions. Traditional Vs Modern theory of cost.
Changes in input prices. Short Run, Long Run distinction. Input substitutability. Input Cost and Demand for Factors of Production.
Derived Demand. Cost Minimization. Decreasing and Increasing Cost
Industry and Price Determination.
19

The nature & behavior of firms. Profit maximization. Marginal Revenue.
Short Run supply by a Price taking firm. Profit maximization and input demand. The controversy over the profit maximization hypothesis. Cost minimization. relationship between cost and production curves.
Perfect competition: The Perfectly competitive market:
The assumptions of the Model: Short run equilibrium of the price taker firm: Long run equilibrium of the price taker firm.
Equilibrium of the industry: Mathematical Derivation of Equilibrium Prices and Quantity: Difference between Perfect and Pure Competition; Price and
Output Decision. Mathematical derivation of Price and Quantity.
Monopoly & its Basics:
The negatively sloping demand curve: Short run equilibrium, Long Run
Equilibrium:
Price discrimination: Bi-lateral Monopoly: Multiplant Monopoly:
Comparison with perfect competition: Monopoly and Price Distribution.
Monopoly and Price Discrimination. Mathematically Price and Quality
Solution.
The historical setting of the theory of monopolistic competition,
Characteristics of Monopolistically competitive firms. The concepts of industry & group:
The basic Chamberlain theory of Monopolistic competition. Comparison with pure competition & monopoly. Mathematical Derivation of Price and
Output Decision under Monopoly.
A simple statement of the problem of oligopoly: Models of Non-collusive
Oligopoly: Cournot, Bertrand, Chamberlin, Sweezy & Price Leadership
Collusive model of oligopoly: cartels & price leadership models.
Mathematical Derivation of Price and Quantity Determination.
Monoposony and Buying Power; influence on Price.
Short Run Demand for one Variable Input. Input price Elasticity.
The Short run Demand Curve. Variable inputs. Market demand Curve for an Input: The Price of fixed Factors: Rents & Quasi-rents. The Supply
Curve of Labor: Wage Determination, Role of Unions.
Recommended Books
1. Ferguson, C.E & Gould, J.P, Microeconomic Theory. Macmillan,
(Latest Edition).
2. Henderson, J.M & Quandt, R.E., Microeconomic Theory*, N.Y.
Melliwra H A Book Co.
20

3. Koutsoyiannis, A., Modern Microeconomics*, London, Macmillan,
(Latest Edition).
4. Layard and Walter A.A., Micro-Economics*, McGraw Hills, (Latest
Edition).
5. Varian Hall R., Micro Economics Analysis*, Norton & Company, New
York, 1992.
Extensions (6 th
edition).
Further Readings
1. Baumol, W.J., Economic Theory and Operations Analysis, Prentice
Hall (Last Edition).
2. Hirshleifer Jack, Price Theory and Applications, Prentice Hall (Latest
Edition).
3. Kameischon, D.T.R., Readings in Microeconomics, New York, The world publishing co., (last Edition).
4. Stiglor, G.T., The Theory of price, N.Y Macmillan, London. (Last
Edition).
5. Silberberg E., The Structure of Economics, A Mathematical Analysis,
McGraw Hill, (Latest edition).
The Development of Macroeconomics, Actual vs. Potential Output,
Analytical Approach to Macroeconomics. Circular Flow of National
Income, Measurement of GNP: Expenditure Approach, Product Approach
/ Income Approach, GNP as measure of welfare. Leakages and Injections:
Saving and Investment and their Role. Nominal and Real Variables.
Economic Models, Exogenous and Endogenous Variables and their
Functional Relationships. Leading and Lagged variables. Measuring
Unemployment: Oken’s Law. How to build simple Macroeconomic Models,
Price Indices; Inflation Indexes, Deflation and Stagflation. Introduction to
Keynesian and Classical School of Thoughts.
Theories of Consumption: Duesenbury Hypothesis, Keynesian
Consumption Function. Permanent Income Hypothesis / Life Cycle
Hypothesis, Beyond Permanent Income Hypothesis, Kuznet’s findings and
Reconciliation of Marginal Propensity to Consume and Average
Propensity to Consume and Evidences. Mathematical derivation of
Consumption Models. The MPS Model, Wealth effect in the Static Model.
Implications of Consumption Theories for Policy Formulation and
Stabilization Policy. Random Walk Model.
21

Definition and Kinds of Investment; Autonomous and Induced etc.
Determinants of investment. Present Value Criteria for Investment.
Investment Demand and Output Growth. Tobin’s Q-Theory. Lags in
Investment Demand. Derivation of IS-curve, Shape of IS-curve. Volatility of Investment. Investment Demand and Fiscal Policy. Shifts in Investment
Demand Curve and output determination.
Money Demand and its Determinants, Regressive Expectation Model.
Portfolio Balance Approach, Empirical Estimation of Income and Interest
Elasticities. Supply of Money, Determinants of Money Supply.
Measurement of Money Supply and its implications, Instruments of
Monetary Policy.
Interest Sensitivity of Money Supply. Quantity Theory of Money and its
Critical Review. Fischer effect, Money, Prices and Inflation. Derivation of
LM Curve and its Slope. LM Curve and Money Market Equilibrium.
Interaction of IS-LM and Equilibrium.
Production Function, Demand for Labor and Capital, Labor Market and its
Equilibrium. Demand for Goods and Services: Aggregate Demand and its
Components. Equilibrium of Aggregate Demand and Supply:
Mathematical Solution and Equilibrium. Saving and Investment Balance.
Derivation of Simple Multiplier, Tax Multiplier. Inclusion of Imports and
Multiplier. The Sticky Wage Model, Insider-Outsider Models. The Workers
- Misperception Model, The Imperfect - Information Model, The Sticky
Price Model. Rational Expectation (RE), Adaptive Expectations. Keynesian
Models: Liquidity Trap. Effectiveness of Policy and Price Rigidity. Slope of Aggregate Supply and Demand Curves. Grand Aggregate Demand
Curve. Interaction of IS-LM and Determination. Classical and Keynesian
Models. Shocks to Aggregate Demand and Supply and Stabilization
Policy. Supply Side Economics. Stagflation and Stabilization Policies.
Short-run – Long-run Philip Curves. Ineffectiveness of Keynesian Policies.
Exchange Rates and their Determinants: Mundell - Fleming Model (MFM):
Small open Economy with perfect Capital Mobility. IS-LM: Goods and
Money Market. Small Open Economy, Floating Exchange Rate and Fiscal
Policy. Fixed Exchange Rate and Fiscal Policy. Flexible and Managed
Exchange Rates.
Monetary Policy, Devaluation and Recovery from great depression. Trade
Policy: Mundell-Fleming Model (MFM) with changing Price Level. MFM and large open Economy. Depreciation and its impacts. Income
Absorption Approach and exchange Adjustment and Balance of Payment.
22

Policy Actions: Active or Passive, Ignorance, Expectations and the Lucas
Critique. Conduct of Policy: Rule vs. Discretion, Distrust of Policy makers and Political Process. Macroeconomics Policy: Rules for Fiscal Policy, making Policy in uncertain World. Seignorage and Inflation: What can
Policy Accomplish? Monetarists vs. Activists debate. Phillips Curve: Short run and Long run analysis. The expectation augmented Phillips Curve.
Money Inclusion and output. Short Run and Long Run Adjustment.
Perfect Foresight and Adjustment.
The Theory of Real Business Cycles: Interpretation: Labor Market,
Technology Shocks. Household Behaviour, the persistence of output
Fluctuations. Limitations of the Model. The Challenges: What we know and what we don’t know? Long-run and Country’s Capacity to Produce.
Short-run and influence of Aggregate Demand. Random Walk Model.
What Determines Inflation Rate, Unemployment Rate and Output Growth?
Can we revise Natural Rate of Output? Should we stabilize the Economy?
The cost of Inflation? The problem of Budget Deficit?
Recommended Book:
1.
Branson, William H., (1979), Macroeconomic Theory and Policy,
Harper and Row Publishers, New York / London.
2. Branson, William H., and Litvack James M., Macroeconomics, (Latest
Edition), Princeton University.
3. Glahe, Fred R., (Latest Edition), Macroeconomics, Theory and Policy,
Harcourt Brace Jovanovich Inc.
4. Mankiw, Gregory N., (2000) Macroeconomics*, Worth Publishers,
New York.
5. Peel D. and Minfow P., (2002). Advance Macroeconomics, Edward
Elgar, Cheltenham, U.K.
6. Romer, David, (2001). Advanced Macroeconomics, McGraw Hills,
New York / London.
7. Sargent, Thomas J., (1988) Rational Expectations and Inflation*,
Harper and Raw Publishers, New York / London.
Ingredients of mathematical models. Derivations: Equation of a straight line and its forms: Two point, intercept, point slope and slop intercept.
Types of functions: constant, polynomial, rational, non-algebraic.
Relationships and functions. Indices & their rules. Functions of more than two independent variables. Logarithms & the rules of logarithms.
23

A linear partial equilibrium market model. The effect of an excise tax in a competitive market. Non linear market model. General Market Equilibrium.
Equilibrium in a linear National Income Model.
Theory of matrix multiplication. Laws of matrix operations. Types of matrices: Square, identity, null, idempotent, diagonal, transpose and their properties. Conditions for non singularity of a matrix. Minors and cofactors.
Determinant & its properties. Solution of linear equations through
Gaussian method, Cramer’s rule and Inverse of a matrix method.
Properties of inverse of a matrix. Use of matrix approach in market & national income models.
Rules of differentiation. Differentiation of a function of one variable. Sumdifference, product, quotient, chain, power, inverse, logarithmic & exponential functions Combinations of rules. Higher order derivatives.
Economic applications of derivative. Concept of maxima & minima, elasticity and point of inflection. Profit & revenue maximization under perfect competition, under monopoly. Maximizing excise tax revenue in monopolistic competitive market, Minimization of cost etc.
Partial differentiation & its rules. Higher order & cross partial derivatives
(young’s theorem). Total differential & total derivatives. Implicit functions rule of differentiation. Optimizing cubic functions & their economic application.
Comparative static analysis: a linear Partial equilibrium market model, a linear National Income model. Partial elasticities. Production functions
Analysis. Maximization & Minimization of unconstrained functions & their economic applications: Profit maximization by a multi-product firm under perfect Competition & monopoly, Price discrimination, Multi-plant monopoly, input decisions etc.
Free and constrained optimization, extrema of a function of two variables: graphical analysis, Lagrange method. Utility maximization & Cost minimization. Homogenous Production function, Cobb Douglas Production function. Jaccobian determinants. CES Production Function. Translog
Function.
Ingredients of linear Programming. Graphical approach, simplex method, economic application of linear programming. Concept of primal & dual.
Duality theorems. Solving of Primal via dual. Economic interpretation of a dual.
24

Recommended Book:
1.
Chiang, A. C., Fundamental Methods of Mathematical Economics,
McGraw Hills, (Latest Edition).
2. Baumol W. J., Economic Dynamics, Macmillan, (Latest edition).
3. Budnick, Frank, Applied Mathematics for Business, Economics and
Social Sciences.
4.
Dowling E. T., Mathematics for economists, Schun Series (latest edition).
5. Weber E. Jean, Mathematical Analysis, Business and Economic
Applications (Latest Edition) Harper and Row Publishers, New York.
Definition and scope of econometrics, Econometric models vs. Statistical models. Ingredients of econometric modeling. Specification, estimation, verification or evaluation and forecasting
Estimation of SLRM by Ordinary Least Squares (OLS)
Interpretation of Estimated Coefficients and their Economic
Meanings.
Estimation of MLR model by OLS and its assumptions Interpretation of estimated coefficients and their economic meanings, Computation of elasticities and standardized coefficients Using R
2 as a measure of ‘Goodness of Fit’ and some Problems with its use.
Estimation of GLRM by OLS through Matrix Approach Var-Cov matrix of estimated coefficients.
Testing the significance of individual coefficients.
Testing the significance of the model as a whole. Multicollinearety
What is Multicollinearety? Distinction between perfect Multicollinearety and less than perfect Multicollinearety (Multicollinearety problem).
Consequences of Multicollinearety problem, methods for detection of
Multicollinearety problem. Remedial measures for Multicollinearety problem.
25

What is Heteroskedasticity and what are its causes? Consequences of
Heteroskedasticity for OLS estimation. Methods for detection of
Heteroskedasticity. Remedial measures for Heteroskedasticity.
What is Autocorrelation and its Causes? Consequences of Autocorrelation for OLS estimation. Methods for detection of Autocorrelation. Remedial measures for Autocorrelation.
What is forecasting and what are its various types? Important features of a good forecast. Variance of unconditional forecast error.
Variance of conditional forecast error. Measures for evaluating the forecasting power of a model.
Errors in variables. Time as a variable. Dummy variables. Estimation from grouped data. Exogenous lagged variables. Endogenous lagged variables.
Methods of estimation of lagged models.
The problems of identification. Implications of the identification state of a model.
Formal rules for identification. Identifying restrictions. Tests for identifying restrictions. Identification and Multicollinearity.
Why Simultaneous Equation Models? Various Types of simultaneous equation Models. The identification problem. Checking the identification state of a model or of a particular equation in the model by Order
Condition, bogus equation and reduced from approaches. Identification and methods of estimation.
Recommended Books
1. Gujrati, D. Basic Econometrics , 3rd Edition, ” McGraw Hill, (Latest).
Printice Hall, (Latest).
6. Wonnacot, R.J. Econometrics, John Wiley, New York & Wonnacot, E.
7. Madnani, G.M.K Introduction to Econometrics Principles and
Applications, (Latest Edition)
8. Pindyck & Econometric Models & Economic Forecasts, 3rd
10. Maddala, J. & Kim Unit Roots, Co-integration and Structural Change,
Cambridge University Press, 1998.
26

11. Griffiths, Judge, The Theory and Practice of Econometrics, John
Willey and Sons, Latest edition.
Properties of CLS revisted, using multiple regression to describe a linear relationship. Interpretation of Beta coefficients. Errors in variables. Time as an variable. Dummy variables. Estimation from group data. Estimation from pooled data. Exogenous and endogenous lagged variables. Methods of estimation of lagged models.
The General Linear Regression Model (GLRM): Estimation of GLRM by OLS through matrix approach. VAR-COV matrix of estimated coefficients.
The problems of identification. Implications of the identification. State of a model. Formal rules for identification. Identifying restrictions. Testing for identifying restrictions. Identification and multi-co-linearity.
Why simultaneous equation model? Types of simultaneous equation models.
The identification problem. Checking the identification – in the model by order condition. Bogus equation and reduced form approaches.
Identification and methods of estimation.
Consistent estimation of parameters of simultaneous equation models: indirect least square estimation. Two stage least squares estimation.
Instrumental variables. Method of estimation.
Causes of coefficient variation. Randomly varying coefficient models.
Systematically varying coefficient models.
ARIMA Models. Comparison of forecast based on ARIMA and regression models. Unit roots and co-integration. Dummy trap and its detection.
Stationarity, impulse response analysis. ARCH Models, VAR Models. Cointegration and error correction models.
27

Information asymmetric and the need for the role of financial sector. Some
Basic concepts like adverse selection, moral hazard, free rider and principal-agent problems in financial sector to understand puzzles of financial markets. Financial system and its relationship with the rest of the economy. Functions of financial sector: mobilization and allocation of resources; pooling, diversification and trading of risk; advisory role; financing technological innovation and development. Financial Repression vs Financial Liberalization.
Growth and stability of financial system.
Why there is need to regulate the financial sector? Why financial sector is most regulated one in an economy?
State Bank of Pakistan and its main functions: conduct of monetary policy; promotion, establishment, regulation and supervision of depository institutions; exchange rate policy and management of foreign exchange reserves; Payment System (NIFT And its functions. Relating to payments system).
Securities and Exchange Commission of Pakistan and its functions: promotion, establishment, regulation and supervision of various components of capital market .
i) Scheduled Banks and their role in economic development of
Pakistan: Introduction to commercial banking; structure of commercial bank in Pakistan; Assts and Liabilities of a commercial bank; performance indictors for commercial banks; recent issues in commercial banking. ii) Non-bank Financial Institutions: Development Financial
Institutions, Investment Banks, Modarbas, Leasing companies,
Mutual Funds, Housing Finance Corporations, Discount Houses,
Venture Capital Companies. iii) Micro Finance Institutions, SME Banks iv) Insurance Companies – the rationale and role.
i) Functioning of Money Market (Primary and Secondary Dealers ii) Capital Market (Stock exchanges and Various Components of capital markets – Securities, equities, bonds, debentures) iii) Foreign Exchange Market and its evolution, dollarization of the economy.
i. Legal Framework (SBP Act 1956, BCO, 1984, SBP Prudential
Regulations)
28

iii. Auditing iv. Corporate governance of banks and other financial institutions. functioning of financial sector vi. Electronic Banking and its prospects
Recommended Books
1. Fabozzi, F. and Modigliani, F. Capital Markets. 2 nd edition. Prentice-
Hall London (1996).
2. Mishkin (2003), The Economics of Money, Banking, and Financial
Markets. 7 th edition.
3. Ritter, L. S. and Peterson, R.L. Financial Institutions and Financial
Markets. 9 th edition. New York. Basic Books.
4. Arby, Muhammad Farooq (2004), “Functions, Evolution and
Organization of State Bank of Pakistan” www.sbp.org.pk
5. History of State Bank of Pakistan (Volume – 3, chapters 2 to7, 13).
6. Zaidi, Akber (2005), “Issues in Pakistan Economy,” Karachi.
Chapters12, 13
7. SBP Annual and Quarterly Reports
8. SBP Financial Sector Assessment: 1990-2002, 2003 and onward.
Why Study International Economics? The Changing World and
Interdependence: Basis of Trade, Gains from Trade. Absolute Advantage,
Comparative Advantage, Overview of Comparative Advantage and Pattern of Trade. Offer Curves and Free Trade Equilibrium. Disagreements on
Free Trade: Overview of Emergency of International Trade Issues. The
Elasticity of Exports Demand and Balance of Payment. Substitution and
Income Effects, Impacts of Rise in Exports Demand.
International Trade and Shift in Production Function, Immerizing Growth,
Output Growth and Terms of Trade (T.O.T) / Deterioration: Uniform
Growth at given T.O.T. The Transfer Problem: Marshall Plan and
Transfers, Transfer of Resources: Neutral Case.
Ricardian Trade Model, World Production and Gains. Comparative Cost and Trade Pattern. National and World Gains from Trade. International
Wage differentials and Productivity. Technical Progress and International
Gains. WTO and Gains from Technical Progress: Impacts on Prices.
Equilibrium Production and Consumption: Non-traded and Tradable,
Costs, Marginal Physical Product and Production Possibilities. Production
Possibilities with Diminishing Returns, Increasing Opportunity Cost. Free
Trade and Income Distribution, Relative Demand, Supply and Pattern of
Trade. Dutch Disease and its application.
29

Output and Factors Rewards in 2*2 Model. Factor Intensity Comparison.
Heckscher- Ohlin (H.O) Model, The Role of Demand, Factor’s Prices and
Commodity Prices, Factor Price Equalization, and Factor Intensity
Reversal. Newly Industrializing Countries (NIC’s) and Footloose
Production Process. NIC’s and H.O Theorem. The Product Cycle, Critical
Analysis of Traditional Trade Theories. Rybescky Theorem and its critical review.
Monopoly and Import Competition, Export Opportunities. Product
Differentiation and Monopolistic Competition. Dumping / Discrimination and WTO, Competitiveness and Market Share, Gains from Migration.
WTO and Factor’s Movements and the Commodity Movement.
Multinationals Firms and Foreign Direct Investment, Transfer of Capital,
Technology, Skill and other Gains, Transfer of Resources and Transfer
Problem.
Tariff and Small Country: Effects of Tariff, Price and Demand for Imports,
Welfare impacts. Impacts of Tariff on Government Revenue, T.O.T
Production and Welfare. Impact of Tariff on Domestic and World Welfare.
The Optimal Tariff. Tariff and Distribution of Income. Brief Introduction of
Tariff and WTO Laws, Tariff and Second Best Choice, Subsidies and
Quota, Voluntary Quota, Growth with Protection vs. Free Trade Gains and
WTO.
Managed Trade, Quantitative Restrictions, Voluntary Export Restrictions and Their Impacts. Trade Diversion and Preferential Arrangements. WTO:
Injury, Anti-dumping Duties, Tariff and B.O.P Support. Success and
Failure of WTO Agenda. WTO Rules: Sanitary, Phytosanitary, Dumping,
Anti-Dumping etc Rules and Emerging New Issues and Their Impacts.
WTO: GATT and Emergency of WTO. Why necessary to Join WTO?
WTO: Major Trade Rules and Their Expected Impacts on Trade, B.O.P
Deficit. WTO and Fair Trade / Free Trade. Free Trade will it be? Issue of
“Are Free Trade Gains more than Restricted Trade”? Emerging Regional
Trading, Blocks, Special Preference and their Impacts. Issues relating to the Contributions of International Financial Institutions and Their
Evaluations. Is there need to Reform International Institutions?
Monetary Integration and Their Impacts. Terms of Trade Issue.
Recommended Books
1. Caves Richard, E., and Jones Ronald W., World Trade and
Payments: An Introduction, Latest Editions. Little, Brown and
Company, Boston, Toront. Latest edition..
2. Chacholiades, Miltiades, International Trade Theory and Policy
(Latest Edition). McGraw Hill Book Company, New York, London,
Latest edition.
30

3. Donomick Sal Vatore B., International Economics (Latest Edition),
Prentice Hal, Latest edition.
4. Grubel Herbert C., International Economics, (Latest Edition) Richard
D. Irwin Inc., Honewood, Illinois.
5. Peter Holinder & Thomas A., Pugel., International Economics. Latest edition.
6. Sodersten B. and Geoffry Read., (1994). International Economics,
MacMillan Press Ltd. Latest edition.
Oxford University Press, Oxford, New York.
8. World Bank. World Development Report, 1986.
Oxford University
Press.
Further Readings
1. Baldwin Robert L. and Richardson David J., (1986). International
Trade and Finance, Little Brown and Company, Boston, Toronto.
2. Moran Theodore H., (1985). Multinational Corporations: The Political
Economy of Foreign Direct Investment. Lexington Books. Toronto,
Massachusetts.
3. Krugman and Obstfeld, International Economics: Theory and Policy,
Addison Willey (1998).
(Note: In addition to above, instructor may assign latest readings )
Definitions: Economic Development and Growth, Identification of
Development variables. Scope and Significance of Development
Economics. Characteristics of LDC’s. Measurement of Economic
Development and Growth. Per Capita Income approach, Quality of Life
Index / HDI etc. Historical overview of world development and emerging major issues pertaining to Less Developed Countries (LDC’s). Why the whole world is not developed?
Classical and Neo-classical Theories, Adam Smith and Competitive
Capitalism, Vicious Circle of Poverty, Stages of Economic Growth,
Balanced and Unbalanced Growth, Big Push Theory. Dependency Theory,
Structuralist’s View Point. Endogenous Growth Theory: New growth
Theory. Income Convergence/Divergence debate. Market Friendly
Approach.
Agriculture vs. Industry: Development Debate. Lewis’ Model of surplus
Labor. Rains’ Fei Model and its critical review. Transforming Agriculture,
Underemployment problem. Role of Agriculture: Market for Industrial
Output, Provision of Input, food, Complementarities, productivity growth.
Terms of Trade Issue and Subsidies, etc. and Competitiveness. Land
Holdings, Green Revolution and it’s Performance. Need for
Industrialization. Industrialization and its financing mechanism. Problem of
31

Sectoral Dualism. Why Green Revolution? The Spread of Green
Revolution in Pakistan and its Status / Contributions.
Demographic Transition, Human Resources as a source of growth and their contributions. Investment in education and returns. Models of
Employment & Unemployment: Time Criterion, Productivity Criterion and
New Index etc., and Employment generation Strategies/Techniques.
Why international borrowing? Two Gap Model, Aid commitments and disbursement. Sources of borrowing. Debt Cycle Theory/Stages. Debt
Burden: Debt Servicing, Debt Laffer Curve, Debt buy back etc., Latin
American Debt Crises, ASEAN Crises, Debt Problem of LDC’s and South
Asia, Debt Overhang and threat to growth. Policies to combat debt problem: Forecasting debt and solution for debt burden, saving mobilization/Domestic resource mobilization, Debt rescheduling etc. Debt
Modeling and Forecasting Future Implication.
Trade vs. Aid. Liberalization of Trade and its impacts/gains etc., Foreign
Exchange Constraints and Balance of Payment deficit. Role of GATT and its Failure. WTO and LDC’s. Trade Instability, Distribution of gains from
Trade liberalization. Regional Trade Associations (RTA’s): their role and contributions. Basis for trade and benefits: Gains from Trade: Static and
Dynamic Gains. Comparative Advantage, Revealed Comparative
Advantage and Competitiveness. Trade as an engine of growth. Product
Cycle. Determinants of exports growth. Transfer of Technology: Sources &
Need. Technology Centered Development and Appropriate technology issue.
Definitions and Measurement of Poverty/Poverty Line. Poverty concepts/definitions. Absolute Poverty, Relative Poverty, Income approach, Expenditure approach, Basic needs approach, Poverty of
Opportunities Index (POPI) and Calorie-based approach etc. Poverty
Indicators. Poverty by socio-economic groups. Sources, impacts and policies to combat poverty. Strategies and tools to combat poverty. Growth and Income Inequality in the world. Empirical evidences on poverty.
Redistribution with growth. How to combat income inequality. Basic
Needs, Social Action Programs and Poverty alleviation.
Model of Environment and Economic Activity. Market Based Approach and
Externalities. Deforestation and Renewable Resources, Measuring environment values. Deforestation and Macroeconomic Environment.
Industrialization and its environmental cost, Use of Pesticides and
Environmental Impacts. Natural resources degradation. Cost of
Pollutions/Environmental degradation. International awareness about
32

environment, production and need for Reforms. Economic thoughts and
Environment. International Agencies: Environmental concerns and programs. Urbanization and environmental issues. Sustained development, Ecology and economic progress.
Recommended Books
1. Balasubramanyam V. and Lall, S. (Latest eds.), Current Issues in
Development Economics. McMillan , London.
2. Chaudhary M. Aslam and Hamid, A., (1989). Human Resource
Development and Management in Pakistan. Ferozsons, Lahore.
3. Chaudhary M. Aslam and Eatzaz, A., (2004), Globalization: WTO,
Trade and Economic Liberalization in Pakistan, Ferozsons, Lahore,
Pakistan.
4. Chenery H. B. and Srinivasen. Hand Book of Development
Economics, vol. I & II, Amsterdam (1988, eds.). North Holland.
5. Cypher J. M. and Dietz James L., (2004), The Process of Economic
Development, Routledge.
Tayl or Francis Group, London/New York.
Routledge, Taylor and Francis Group, London/New York.
7. Herrick B. and Kindleberger C., (latest eds.). Economic Development.
McMillan, New York.
8. Hirshman A. O., (1960). Strategy of Economic Development, Yale
University, Press.
9. Jones H. G., An Introduction to Modern Theories of Economic
Growth , (Latest Edition), McGraw Hills.
10. Mahboob-ul-Haq Center for Human Development (MHCHD). Human
Development in South Asia, Annual Reports, Islamabad.
11. ------------- (1999), A Profile of Poverty In Pakistan, (In Collaboration with UNDP).
12. Meier Gerald M., Leading Issues in Economic Development, (Latest
Issue), Oxford University Press.
13. Thirlwall, A.P., (2003), Growth and Development, With Special
Reference to Developing Economies 7 th
edition, Palgrave Publisher.
14. Todaro M. P., Economic Development in the third World. Latest
Edition, Heinemann, London.
15. UNDP, Human Development Reports , Annual Reports.
16. Van Den Berg H., (2001), Economic Growth and Development,*
McGraw Hills.
17. William, Easterly, Growth without Development, A Case Study of
Pakistan, World Bank.
18. World Bank, World Development Reports, Annual reports, 1986,
1987, 1990, 1991, 1992, 1994, 1995, 1998/99, 2000/2001 and 2004.
19. Yotopolous Pan A. and Nugent Jeffery B., Economics of
Development, Empirical Investigation (Latest eds.). Harper and Row
Publishers, London/New York.
33

The nature of general equilibrium analysis, General Equilibrium Theory:
Multi market equilibrium in a competitive setting; Walras Law; Existence of equilibrium; Stability of equilibrium; Money in a general equilibrium setting.
Technical and allocative efficiency and case of exchange economy. Linear programming technique to general equilibrium theory (Activity Analysis).
The Von-Neuma Model of a expanding economy, The input-out Model.
Pareto principle, optional, production and resource allocation and efficiency of Perfect Competition. Measurement of Changes in Welfare:
Consumer Surplus, Compensation Principle. The Theory of Social
Choice: Social welfare function, Arrow’s Impossibility Theorem, Marginal cost pricing, Joint Products, Externalities, Income distribution and compensation principles. Theory of second best and its application in
Public Sector and international trade.
Importance of Research Methodologies. Research techniques in social sciences and their limitations. Theory and basis of research. Empirical and theoretical research. Stages of research process. Identification of problem/issue, data, theory and estimation and related problems.
Thinking, Field Research Designs; the process of field research,
Exploratory Research, Casual Inference. Methods of communication in survey. Vision survey and communication techniques. Art of asking questions and getting quality information. Preparation of Research
Proposal Questionnaire, Sample Design; the Nature of Sampling,
Measurement and Scaling; Measurement, Measurement Scales, the
Characteristics of Sound Measurement, the Development of Measurement
Tools, Scaling, the Nature of Scaling, Response Methods, Scale
Construction. Data Collection Methods, Survey Instruments and Field
Procedures; Survey Instrument Designs, the Survey Situations, the
Instrument Development Process, Questionnaire Development, Field
Procedures, Personal Interviewing, Telephone Interviewing, Interviewing by mail, observations. Data collection, Observation, Experimentation and
Simulations; Experimentation and Simulation. Choice of Research
Technique, Experimental Research Design, Simulation, Observation,
Observation Designs. Use of Secondary Data; the Nature of Secondary
Data Sources, the Use of Secondary Data, Types of Secondary Data
Sources, Statistical Sources, Data Research Procedures, Evaluating
Secondary Data. Vision Survey: Interpretation of Replies. Data
Presentation and Analysis: Elements of Analysis, Data Preparation,
Special Data Problem, Tabulation, Data Presentation, and Data Analysis.
Report Writing; the Questions and analysis of Research Proposal.
Organization of Research Paper. How to format and Write country
Research Report. Executive summary and abstract of a report. Conclusion and its basis. Evaluation of Research Work. The Research Report,
Research Report Format, Writing and editing of research Report.
34

Recommended Books
Economics, Herifaq Publishers, New Delhi.
2. Holt, Rinehart and Winston, Holt-Sounders Japan Ltd. Tokyo (Latest edition).
3. Johnson, Glenew Research Methodology for Economists: Philosophy and Practice, McMillan Publishing Co. (Latest edition).
4. Kidder Louise H., Research Methods in Social Relations.
5. Lambert, P., (1985) Advanced Mathematics for Economists. Static and Dynamic Optimization, Basil Black Well.
6. Neuman W. Lawrence, (1997) Social Research Methods, Qualitative and Quantitative Approaches, Allyn and Bacon; Boston.
8. Uma, Sekarn, (1992), Research Methods for Business. A Skill
Building Approach, John Willey & Sons, Inc.
9. Young Pauline V., (latest edition), Scientific Social Survey and
Research, Prentice Hall Inc.
10. Zikmund William, G., (1994), Business Research Methods, The drydem Press.
Construction and analysis of dynamic models of macroeconomics and monetary phenomenon with focus on non-linearity, multiplicity of equilibria, and indeterminacy; stability and instability of macroeconomic equilibrium in linear and non-linear models; continuous and discrete time; classical and Marxian accumulation models with multiple indeterminate, cyclical and chaotic equilibrium paths; non-linear stability bifurcation theory, dynamic stochastic optimization techniques. Disequilibrium models; price and quantity adjustments of multiple equilibria, stability in the long-run.
International Debt, Aid / Assistance, Debt Crises and New Role of World
Bank and IMF
Why international borrowing? Two Gap Model, Aid commitments and disbursement. Sources of borrowing. Debt Cycle Theory/Stages. Debt
Burden: Debt Servicing, Debt laffer Curve, Debt buy back etc., Latin
American Debt Crises, ASEAN Crises, Debt Problem of LDC’s and South
Asia, Debt Overhang and threat to growth. Policies to combat debt problem: Forecasting debt and solution for debt burden, saving mobilization/Domestic resource mobilization, Debt rescheduling etc. Debt
Modeling and Forecasting Future Implication. Solution to debt Problem.
LDC’s Inflation and Deficit B.O.P Problem. Savings and forced savings.
Direct and indirect taxation, Transfer of resources from agricultural to industry. Migration and its role. Urban unemployment. Industrialization and Small Manufacturing enterprises (SME’s). Human Capital and its development / productivity.
35

Multinational Corporations (MNC’s): Objectives, Role and Contributions,
Long term cost of TNC’s. Transfer of Technology: Ways and Means.
Global integrated production system: MNC’s and Globalization, Foreign
Direct Investment (FDI) and Its Determinants/Role. Foreign Direct
Investment (FDI) and MNC’s. Flow of FDI and its contributions.
Definitions and Measurement of Poverty/Poverty Line. Poverty concepts/definitions. Absolute Poverty, Relative Poverty, Income approach, Expenditure approach, Basic needs approach, Poverty of
Opportunities Index (POPI) and Calorie-based approach etc. Poverty
Indicators. Poverty by socio-economic groups. Sources, impacts and policies to combat poverty. Strategies and tools to combat poverty. Growth and Income Inequality in the world. Empirical evidences on poverty.
Redistribution with growth. How to combat income inequality. Basic
Needs, Social Action Programs and Poverty alleviation.
Model of Environment and Economic Activity. Market Based Approach and
Externalities. Deforestation and Renewable Resources, Measuring environment values. Deforestation and Macroeconomic Environment.
Industrialization and its environmental cost, Use of Pesticides and
Environmental Impacts. Natural resources degradation. Cost of
Pollutions/Environmental degradation. International awareness about environment, production and need for Reforms. Economic thoughts and
Environment. International Agencies: Environmental concerns and programs. Urbanization and environmental issues. Sustained development, Ecology and economic progress.
Trade vs. Aid. Liberalization of Trade and its impacts/gains etc., Trade led
Growth, Foreign Exchange Constraints and Balance of Payment deficit.
Role of GATT and its Failure. WTO and LDC’s. Trade Instability,
Distribution of gains from Trade liberalization. Regional Trade
Associations (RTA’s): their role and contributions. Basis for trade and benefits: Gains from Trade: Static and Dynamic Gains. Comparative
Advantage, Revealed Comparative Advantage and Competitiveness.
Trade as an engine of growth. Product Cycle. Determinants of exports growth. Transfer of Technology: Sources & Need. Technology Centered
Development and Appropriate technology issue.
Harvard – Dormer Model, Neo-classical growth theory, Technical change, endogenous growth. Institutional Economics, Institution’s and Market,
Good Governess, Role of Institutions in Economic Development.
Institutions and LDC’s.
36

Islamic Economics Nature, and Importance of Islamic Economics. Islamic
Economics Versus Economics of Secular Economy and Mixed Economic
System. Brief Introduction of Basic Values of Islam; Taqva, Halal and
Haram, Justice, Benevolence, Equality, Brotherhood and Cooperation as
Determinants of Economic Behaviour and Policies.
Contribution of some Earlier Muslim Scholars in the Development of
Islamic Economics (Imam Abu Yousuf, Imam Abu Ubaid Al Qasim,, Ibn-e-
Khaldoon, Imam Ibn-e-Taimiah, Shah Waliullah Dehlvi, Baqar-al-Sadar).
Silent features of Islamic Economic System; objectives, Economic
Freedom, Property and Ownership Rights. The Concept of Equality and
Efficiency. The Relative Importance of Capital and Labour. Priority to
Basic Needs. Concepts of Ownerships and Implication. Welfare and income Distribution.
Comparison of Islamic Economic System with Capitalism and Socialism, with respect to above cited principles / values of Islam.
The Consumer Behaviour in Islam. Utility, Moderation, optional
Consumption Behaviour.
Organization of Production and Behavioral Theories of Firms.
Objectives and Behaviour of Firm in Islamic Economy. Business Ethics in
Production and Marketing. Hoarding and Gains.
Market Structure – Monopoly and Competition, Resource Allocation in
Islamic Environment and Cartels. Concepts of Fair Trade.
Stockists / Wholesales, determination of Prices and Rate of Normal Profit /
Meeting of Losses. Price Mechanism and State Role in Regulation of
Markets.
Modarba and Musharka. Types of Bai. (Bai-Salam, Bai Muajjal,
Morabaha.) Saving and Investment in Islam. Investment of Savings for
Gains.
Islamic Stress on Circulating of Wealth. Steps against Concentration of
Wealth. Social Justice in Islam. Rights of Labour, Distributive Justice.
Use of Land and Other Natural Resources and their Rewards. Role of
State in Distribution of Wealth.
37

Consumption, saving and Investment Functions in Islamic Environment.
Determents of Islamic Consumption Function, Concept to Help others,
Welfare and Religious believes. Zakat and Usher.
Gold Money, Paper Money and Credit Money. Western Justification of interest. Islamic Concept of Riba, its Implications and Alternatives.
Functions of Commercial Banks in Islamic Framework. Central Banking and Monetary Policy in Islamic Framework.
Central Banking and Monetary Policy in Islam. Inflation Vs. Design of
Capital Market. Monetary Policy in an Islamic Framework.
Meaning of Zakat, Nisab, Introductory Hints about items of Zakat.
Distributive Role of Zakat and Social Justice. Zakat as a tool in Fiscal
Policy. Economic Role of Islamic State. Welfare consumption and limits.
Revenue and Expenditure Items in Modern Islamic States. Beneficiaries of
Zakat.
The Tax Policy of Islam. Nature and Scope of Fiscal Policy in Islamic State
(Taxation Policy). Expenditure Principles. Burden of Taxes.
The Islamisation of Banks. Implementation of Zakat / Usher in Pakistan.
A brief Survey of Changes in Economic Structure and Conditions Since the Holy Prophet (regarding Transport / communication, Business Forms,
Production of Goods, Money and Banking).
Books Recommended
1. Islamic Economics: Theory and Practice, A Comparatice Study, M.A.
Mannan, Cambridge, Hodder and Stoughton, 1986 (or latest ed.)
2. Islamic Economics: Dar A.H & M.. Akram Ilmi Kitab Khana, Lahore
(latest ed.)
3. Macro Consumption Function in an Islamic Economic Framework, M.
Fahim Khan, International Centre for Research In Islamic Economics,
King Abdual Aziz Univ, KSA.
1. Ahmad, Khurshid, (latest edition), Fiscal Policy and Revenue
Allocation in Islam, International Islamic University, Islamabad.
2. Anf A.Q. Mannan M.A. (1995), Developing a System of Financial
Instruments IRTI, Islamic Development Bank, Jeddah.
3. Badawi, Imam Abu Abaid Al-Qasim Muhammad A. Zaki, Kitab ul
Amwal:, Zakat and Social Justice, Islamic Council of Europe, London,
1979.
4. Chapra T M., The Economic System of Islam, University of Karachi,
1991.
5. Chapra, Umer, Monetary Policy in an Islamic Economy, in Money and
Banking in Islam, Institute of Policy Studies, Islamabad.
38

6. Ghazanfar S.M., (2003), Medieval Islamic Economic Thoughts,
Routledge Publishers.
7. Khan M. Fahim, (1995), Human Resource Mobilization Through the
Profit, Loss Sharing Based Financial System, IRTI, Islamic
Development Bank Jeddah.
8. Khan, Tariq ullah, (1996), Practice and Performance of Mudarba, A case study of Pakistan, IRTI, Islamic Development Bank, Jeddah.
9. Khurshid, Ahmad, Elimination of Riba: Institute of Policy Studies,
Islamabad.
10. Mahdi, M. Ahmad, (1995), Islamic Banking Modes for House Building
Finance, IRTI, Islamic Development Bank, Jeddah.
11. Mannan M.A, (1996), Financing Development in Islam, IRTI, Islamic
Development Bank, Jeddah.
12. Naqvi Syed Nawab Hyder Ethics and Economics: . Leicester, The
Islamic Foundation. 1981.
13. Nomani, Farhad & Rehnuma., Ali, Islamic Economic Systems: – Zed
Books Ltd., London, 1994.
14. Nuti, D. Haris, (1995), The Economics of Participation, IRTI, Islamic
Development Bank, Jeddah.
15. Siddiqui, M.N., Muslim Economic Thinking, Leicester, The Islamic
Foundation. 1985.
16. Tago, Usman, Justice: Introduction to Islamic Finance, (2000), Idaratul- ma’arif edition.
17. Yusaf, Imam Abu, Kita bur Kharaj, Lahore, Islamic Book Centre,
1979.
Evolution of Money and Payment System. Definition of Money Function of
Money & Measurement of Money. Demand for Money & Supply of Money.
Definitions of Money, M1, M2, M3, L etc.
Debate on neutrality and non-neutrality of Money. Classical Dichotomy and Keynesian Integration of Nominal and Real Sectors. Role of Money in the IS-LM Framework. Money in Aggregate Demand & Aggregate Supply
Analysis. Keynesian Vs. Monetarist views of Equilibrium Output,
Employment and Prices.
Quantity Theory of Money. Transaction Theories of Demand for Money.
Portfolio Theories of Demand for Money. Baumol – Tobin Model of Cash
Management. Friedman’s Restatement of Quantity Theory of Money:
Empirical Evidence on the Demand for Money.
Monetary Base, Keynesian Liquidity Preference Framework, Friedman’s
Modern Quantity Theory of Money. Multiple Deposit Creation: Introducing
39

the Money Supply Process. Determinants of the Money Supply:
Exogenous and Endogenous. Understanding Movements in the Monetary
Base, Money Multiplier. Velocity of Money and its variability. Explaining
Depositor and Bank Behaviour: the Complete Money Supply Model.
Regressive Expectation Model.
Structure and Functions of Central Bank. Independence of Central Bank and its role in Economic Growth. Tool of Central Bank for Money Control.
Monetary Base. The Conduct of Monetary Policy: Goals and Targets.
Tools of Monetary Policy: Three Major Tools of Monetary Policy. Required
Reserve Ratio, Discount Window Loans and Open Market Operation.
Advantages and Disadvantages and Impact Analysis of each Policy Tool.
Central Bank as a lender of last Resort. Financial Intermediateries.
Monetization of Public Debt. Infectiveness of Stabilization Policies.
Targeting interest rate and inflation.
Determinants of interest rates. Kinds of Interest Rates. The Behavior of
Interest Rates. Understanding & Measuring the Interest Rates.
Real & Nominal Interest Rates, Theories of Interest Rate Determination.
The Risk and Term Structure of Interest Rates. The Distinction Between
Interest Rates and Returns. Maturity & Volatility of Bond Returns. Portfolio
Choice: the Theory of Asset Demand.
What is Inflation & Causes of Inflation? Demand – pull Inflation, Cost – push Inflation, Stagflation & Hyperinflation. Inflation as a Monetary
Phenomenon.
The Philips Curve and Accelerating Inflation. Inflation in Pakistan:
Sources and Managing Policies. Sources of Inflation in Pakistan: Spiracle
Evidences. Policies to Combat Inflation in Pakistan.
Money Demand and Empirical Evidences. Money in Growth Models.
Inflationary Spiral. Current Issues in Monetary and Financial Sector
Reforms. Conduct of Monetary Policy in Fixed and Flexible Exchange
Rates. Perfect Mobility of Capital and Money Control, Effectiveness of
Policy. Impact of Reserves on B.O.P and Exchange Rates. Targeting exchange rate. Managed Exchange Rate System and Monetary Policy.
Targeting Inflation. Exchange Rate and Balance of Payment.
Recommended Books
1. Bennett T. McCallum, (1989), Monetary Economics, Theory and
Policy, McMillan.
2. Fredric S. Mishkin, (1995), Financial Markets and Money, Harper &
Row Publishers.
40

3. Laider, David E.W (1996), The Demand for Money: Theories,
Evidence and Problems (Fourth edition), Harper & Row, Publishers,
New York.
4. Miller, R. L. and David VanHose, (2001), Money, Banking & Financial
Markets. South Western, Singapore.
5. Mishkin, Frederic S., (2001), The Economics of Money, Banking and
Financial Markets. (Sixth edition). Addison Wesley, New York.
6. Vanish K., Monetary Theory, (2000), Vikas Publishing House, Delhi.
7. Patinkin Don, Money, Interest and Prices, Harper and Row
Publishers, (Latest Edition).
The Economic Functions and Public Goods: Allocation of Resources,
Redistribution of Income and Wealth and Stabilization. Pricing Public
Goods.
Fiscal Principles and Concepts: The Traditional Principle of Tax Neutrality is Expended Principle of Fiscal Neutrality. Exhaustive Vs. Non-Exhaustive
Public Expenditures, Income Elasticity of Government Expenditures, Tax
Vs. Non-tax Revenues, Microeconomic Vs. Macroeconomic Regulatory
Taxes, Tax Base, Tax Rate Relationship; Progressive, Regressive and
Proportional Taxes, Marginal Propensity to Tax and Marginal Vs. Average
Tax Rates; Income Elasticity of a Tax Integral Fiscal Non-Neutrality. Tax
Efforts and Tax Collection Performance in Pakistan.
The Economic Case for the Public Sector to Allocate Resources: Market
Imperfections, Decreasing Costs of Production, Public Goods and
Externalities. Pricing Decreasing Cost Industry.
Public and Private Goods, Pure Public Goods, Should Public Sector be
Produced Vs. Private Goods? Semi Public Goods, Merit Goods, Free
Rider Problem, Externalities and Public Policy.
The Ability to pay and Economic benefits (received), Cannons of Taxation,
The Optional Income Tax Approach. Optimum Tax and Revenue
Collection.
Various Kinds of Taxes and their Objectives / Performance in Pakistan.
Income and Sales Taxes, Excise and Custom Duties, Export and Import
Taxes, Tax Reforms in Pakistan and their Impacts.
41

General Equilibrium Vs. Partial Equilibrium: Tax Incidence Analysis.
Determinants of Tax Shifting under Partial Equilibrium Conditions. Impacts of Tax Shifting on Price.
Theories of Public Expenditures, Wagner’s Law, Efforts of Public
Expenditures. Components of Public Expenditures in Pakistan, Sources and Direction of the Growth of Public Expenditures. Kinds of Budget,
Surplus, Deficit and Balanced: Preparation of Budget Cycle in Pakistan,
Development and Non-Development Budget and its Patterns. Zero Based
Budget, Planning, Programming Budgeting System.
Fiscal and Economic Aspects of Federalism, Federal – Provincial Fiscal
Co-ordination, Collection of Revenue and Provincial Share and its
Distribution Criteria. Deficit Financing and its Impacts.
Recommended Books
1. Bernard P. Herber, (1999), Modern Public Finance.
2. Chellieah R.J. (Latest eds.), Fiscal Policy in Less Developed countries.
3. David N. Hyman, (1996), Public Finance, A Contemporary Application of ---. Harcount Brace College Publishers.
4. Govt. of Pakistan, Economic Survey, Yearly Publication, Ministry of
Finance, Economic Advisory Wing, Islamabad.
5. Rosen and Harvey S., (1999), Public Finance, McGraw Hill.
6. Musgrave R.A. and B.P., Musgrave (Latest Eds.), Public Finance in
Theory and Practice, McGraw Hill.
7. Stiglitz E., (2000), Economics of The Public Sector, W. W. Norton &
Co.
Meaning of Project Appraisal, usefulness and significance, Aspect of project appraisal with a special focus on economic versus financial analysis, Contours and Dimensions of a project and its essential ingredients, Project Vs. Plans. Project Cycle.
Objectives of Costs and Benefits, The Incremental / Net Benefits and
“With” and “Without” Comparisons. Categories of Costs and Benefits.
Prices reflecting values, Market price and financial analysis, Finding market prices and related problems, Change in relative prices and inflation: Shadow Prices and economic analysis, Removal of market price
42

distortions in traded and non-traded goods. Premium on foreign exchange through use of Shadow exchange rate and conversion factor approach.
Undiscounted measures of project worth, Discounted measures of NPW,
IRR, BCR, Net benefit – Investment Ratio, Comparative assessment of discounted measures. Social vs. Economic benefits and selection of projects.
Sensitivity analysis, Switching value, Choice among mutually exclusive alternatives, Domestic resource cost of foreign exchange earning / saving.
Areas and elements of analysis, Methods of analysis: Constant Effect
Method, Constant Cost Method, Measuring of cost effectiveness, Present
Worth, Annual Worth, Cross over discount rate, Limitation of analysis.
Theoretical and empirical examination and saving and investment,
Concept of capitalization types of securities, non-banking financial institution. Development financing, Asset Structure, Stock Prices, Money
Market, Portfolio Theory and Investment Analysis. Financing the industrial sector; Large scale and small scale, Interest rate. Bond market, Real and financial investment. Financial intermediaries; Speculation and Inter – relationship of financial and real variables in the economy.
Recommended Book
1. Hughes, A., & D.J. Storey: “Finance and The Small Firm” (Ed)
Routledge, London, (Latest).
2.
Bruno Solmik, International Investment, Addison Wesley, (Latest).
3.
Burno Solnik: “International Investments” 3 rd
Ed. Addison, Wesley publishing Co. (Latest).
4. Donald, E., Fischer, Arnold, J., Security Analysis and Portfolio
Management. Prentice Hall, Delhi, (Latest).
5. Edwin J., Elton and Martin J. Goober, Modern Portfolio Theory and
Investment Analysis, John Wiley and Sons (Latest).
6.
Gittinger J. Price, “Economic Analysis of Agricultural Projects”, The
Johns Hopkins University Press, London, Dec. (Latest).
7. Hughes and Storey D.J., Finance and Small Firms, RoutLedge,
London (Latest).
8. Hussain, Ch. M: “Project Appraisal, Monitoring and Evaluation
Process with Special Reference to Pakistan” Royal Book Co. Karachi,
(Latest).
9. Punjab P&D Board, “Planning Manual” Lahore, (Latest).
10. United Nations: “Guide to Practical Project Appraisal – Social Benefit
– Cost Analysis in Developing Countries.” Oxford & IBH publishing
Co. New Delhi. (Latest).
43

11. United Nations: “Manual for Evaluation of Industrial Projects” Oxford
& IBH Publishing Co. New Delhi, (Latest).
12. William F. Sharpe & Gorden J., “Investments” 5 th
Ed., Prentice Hall,
(Latest).
13. Zvi Bodie, Alex Kane, Alan K., Essentials of Investment, McGraw Hill,
(Latest).
The Nature and Scope of Managerial Economics. The Managerial decision making process. Theory of the firm. Profit maximization, Cost
Minimization.
Economic optimization. Economic relations of variables. The Incremental concept in Economic Analysis. Demand, Supply and Equilibrium.
The Basis for Demand. The Market Demand function. Demand sensitivity analysis: Elasticity, Price Elasticity of Demand with Managerial applications. Income Elasticity of Demand with Managerial applications.
Application of Regression Analysis: Demand estimation. Demand forecasting.
Production functions. Total, Marginal and Average Product. Revenue and
Cost in Production. Production function estimation. Productivity
Measurement. Homogenous and Homothetic Production Function. Short run and long run cost curves. Learning curves and application. Cost-valueprofit analysis. Cost estimation.
Introduction. Risk Analysis of Decision Alternatives. Adjustment for Risk in
Decision Making. The Expected Value Criterion. The Standard Deviation
Criterion. The Coefficient of Variation Criterion. The Certainty Equivalent
Criterion. The Maximax Criterion, Maximin Criterion and Minimax regret criterion. The Decision Tree and Joint Probabilities. Optimal decision
Strategy. Limit Pricing and Preventing entry.
A Review of Market Structures and Basic Pricing Models. Perfect
Competition. Monopoly. Monopolistic Competition. Oligopoly. Selected
Pricing Models. Marginalist Pricing. Mark up pricing. New Product Pricing.
Oligopoly Model. Contestable Markets. Pricing Strategies for Firms and
Market Power. Monopolistic Competition. Price Discrimination,
Monoposony and Price Product.
44

Baumol’s Theory of Sales Revenue Maximization. Marris’s Model of
Managerial Enterprise. Williamson’s Model of Managerial Discretion
Topics, Behavioral Model by Cyert and March.
Public and Private Goods and their pricing mechanism. Decreasing cost
Industry and pricing. Externalities and Market Pricing issues. Rent seeking and control. Government Policy and International Trade, tariff and pricing. Import Competitiveness and tax, International pricing Techniques
/Strategies.
Pre-requisites of Capital Budgeting. Investment Criteria and Decisions.
Cash flow estimation, Internal Rate of Return, Profitability-Index Criterion and other criterion. Optimal Capital Budget.
Recommended Books:
1. Douglas, E. J., Managerial Economics, Prentice Hall, (1990).
2. Hirschey, M. Managerial Economics, (10 th
edition) U.S.A. Thomson
South-Western, (2003).
3. Hirschey, M. and J.L. Pappas; Fundamentals of Managerial
Economics, Dryden Press, (1998).
4. Kent P, and P Young., Managerial Economics: Economic Tools for
Today’s Decision Makers., (4 th
Edition) Pearson (2003).
5. Keat, P., and P., Young, Managerial Economics, MacMillan, (1992).
6. Koutsoyiannis, A., Modern Microeconomics, MacMillan, (1979).
7. Mansfield E., (1998), Manageral Economics, Theory, Application and Cases. W. W. Nortion & co.
8. Michael R., Baye, (2000), Managerial Economics and Business
Strategy, McGraw Hills.
9. Pappas, James, Brigham Eugene F and Hirschey Mark., (latest edition), Managerial Economics, Dryden Press, Chicago.
10. Salvatore, D. Managerial Economics, McGraw Hill, (2001).
11. Thomas, Maurice., Managerial Economics: In a Global Economy (7 th
Edition) New York: McGraw Hills, (2002).
Introduction: Importance of Economic History: Approaches to Study the
Subject. Overview of Ancient Greek, Roman and Medieval Economic
Thought. Overview of Ancient and medieval thoughts, Quensey’s influential ideas, Feudalism, Mercantilism, Nature’s Circular Flow, Process of modern theories and thoughts. Overview of Islamic thoughts: Ibne-
Khuldoon and thereafter. Overview of Silent Features of Muslim School of
Thought
45

The Contributions of Mercantilists and the Physiocrates. A doctrine of economic process, transition to liberalization: Wage theory to natural price, the task of government. Overtime, Changing Role of Government.
The Contributions of Classical School, Adam Smith; Malthus and Ricardo etc., The Labor Theory of Value. Bullin Debate. Ricardo’s Monetary
Thought. Evolutionists, Ricardo and Reformers of 18 th
Century. The
Theory of Rent. Profit Concepts of Colonization. Economic
Socialism before Marx. English Socialists. Anarchism. Karl Marx’s
Contributions. The Class Struggle. Criticism on Marx. Challenges to
Capitalism. German Historical School, Weber’s contributions. The
Marginalist School, Neo-Classical Economics. Jeons Inference. The concept of Welfare State. Chamberlin and Robinson. Australian School of thought. Veber and Galberith’s Contribution.
The Keynesian and Post Keynesian School, The Great Depression:
Economic Policies and Capitalist Instability Between the World Wars.
The 20 th
Century Paradigms. The Growth of International Economy. The
Rise and fall of Post World War II. The American economic history and
Lessons. i) The Emergence of Modern Economic Growth, Building Blocks,
Industrial Revolution, Structuralist and Dependency School of thought; Sunkel, Amir Samer, Frank and others’ contribution.
Technological Change and Impacts.
The Crisis of the 1970’s and International Responses. Failure of
Trickle down effects. Rational Expectation Revolution. Basic
Needs Approach and welfare. Emergence Famine and Poverty.
ii) Modern Economic Thought. Comparison of Post Keynesian and
Monetarist Thoughts. Supply side economics. Globalization,
Liberalization and New Weave of Economic Growth and Welfare.
New Growth Theory. Convergence and Divergence Debate.
Future of Economics, Quality and International Trade and emergence of markets, New Regionalism, New directions of research. Environment and sustainable growth.
Recommended Readings
1. A History of Economic Ideas, (1959), Robert Lekachman, McGraw Hill
Company.
2. Economic Theory in Retrospect, Blaug, (1978), Cambridge University
Press.
3. Frank A. G., (1998), Global Economy in the Asian Age, Univ., of
California Press.
4. Henery John D., The Future of Economics, (1992), Black Wall
Publishers.
46

5. Marx k., and Engles F., The Communist Manifesto, Peoples
Publishing House, Moscow, latest edition.
6. Rima Ingrid, Development of Economic Analysis, Routledge
Publishers (Latest ed.).
7. Spechler, Martin C., (1990), Perspective in Economic Thought,
McGraw Hills.
8. The Main Current in Modern Economics (latest edition), The Free
Press of Glancer.
9. Theories of Value and Distribution (latest Edition), Dobb M.,
Cambridge Univ. Press, Latest edition.
10. Twenty Contemporary Economist ed. (1981). Schach and Locksley,
MacMillan Press.
Classification of Economic Systems, Historical Development Criteria for
Evaluation of an Economic System. Basic Differences between Economic
System.
Definition, Historical Development, Pre-Requisites of Capitalism,
Competitive and Monopoly Capitalism. Economic Institutions of
Capitalism. Distinction between private and Public Property and
Production, Price System, Profit Maximization/Cost Minimization and
Competition. Economic Decision Making under Capitalism. Evaluation of
Capitalism in USA and Europe Capitalism, Market System and
Environmental Problems.
Meaning and Nature, Communism and Power to the Centre. Concepts of
Ownership and Production. Various types of Communism, Marxism,
Socialism, Economic Planning and Decision Making. Achievements and
Failures, Communism / Socialism in USSR, China and Other parts of the
World. Modern Trend and its failure, Convergence of Capitalism and
Socialism. Present Status of Socialism.
Distinctive Features, Basic Economic Values of Islam. Economic
Institutions and their Role, Property Rights, Production and Distribution
System. The Concept of Welfare State. Comparative Analysis: Islamic
System, Capitalism and Communism.
Brief Economic History of Pakistan. The Mixed Economy, Nationalization and its Impacts. Operations under Mixed Economy, Privatization and
Liberalization in the 1990’s and 2000’s. Islamisation in Pakistan: Process and Problem, Achievements and Experience. Islamic Economics as
Global System of Equity and Welfare.
47

Recommended Books
1. Capitalism, Socialism and Islam by Syed A. Ala Maududi, Islamic
Book Publisher, Lahore.
Whitnery (latest edition).
3. Comparative Economic Systems by Martin C. Schmeltzer and James
W. Hordyke (1977).
6. Comparative Economic Systems by Gregory, Stuart, Houghton Mifflin
Company, Boston (1985).
What is Economics of Environment. Historical Framework for
Environmental Protection. Distinction between natural resource economics and environmental economics. The Economy and the Environment. First and the second laws of thermodynamics. The fundamental balance.
Supply and Demand Issue: Cost of Controlling Environment Benefit – Cost and its Estimation. Willingness to Pay. Equilibrium Principle Technology and Equi. Marginal Principles, Marginal Cost and Supply, Economic
Efficiency and Markets. Equity and Social Efficiency. External costs and external benefits.
Pollution and Impacts on Human Life, quality of life and Environment
Quality, General Models of Pollution Control. Emission Reduction and
Equi. Marginal Principle. Long Run Sustainability through Pricing
Mechanism.
Measuring environmental benefits: Contingent valuation, the travel cost method and the hedonic approach. Benefit Cost analysis: Costs: The value of life, health, safety and risk. Pigovian Analysis, The Coase
Theorem.
General considerations, Environmental degradation in developing economies. Economy and Environment. The Pollution Haven hypothesis.
The role of developed countries.
Emergence of Environment Issue in Pakistan, Industrial Waste, Urban
Waste and Agricultural Issues Related to Pesticides use, Salinity and
Water Logging. Urban Environmental Issues. Public and Private Efforts to Improve Environment Quality and Impacts. Air pollution in Pakistan.
48

Public Policies and Awareness to Control Pollution. Environmental Policy and Strategy in Pakistan.
Ozone Depletion, The Economics of Global Warming. Keyoto – Protocol and Issues. International Environmental Agreements. UN and
Environmental Cooperation. International trade and the Environment.
Impacts of Awareness Policy.
Recommended Books
1. Field, B.C and M.K Field, Environmental Economics: An Introduction
(3 rd
Edition) 2002 New York: Mc Graw Hill
2. Barry C. Field, Environmental Economics, An Introduction, McGraw
Hill (Latest Edition).
3. Chapman, D. Environmental Economics : Theory Application and
Policy, Latest eds. Massachusetts: Addison- Wesley
4. Hussen A. (2003), Principles of Environmental Economics, Routledge
Publishers.
5. Baker Steve, Environmental Economics, (2003) Dominant Publisher and Distributors, New Delhi.
Agricultural Revolution, Importance of Agriculture, Food Safety, Agriculture vs. Industrial development Debate. Current State of Agricultural
Development. Brief Overview of Sources of Growth. Introduction to issues in Agriculture etc.
Traditional Agriculture and Productivity. Access to non-labor resources.
The Framing Environment: Natural Hazards and Economic Uncertainties.
The Food problem. Farm Size and Productivity. Farm Size in Pakistan and Productivity Commercial Farms. Impact of Agricultural Reforms on
Farm Size.
A framework of Analysis. Product Contribution, Market Contribution,
Factor’s Contribution. Foreign Exchange Contribution. Agriculture vs.
Industry Debate of Development.
Introduction. Economic Rent. The Theory of Rent. Rent and Quasi-Rent
The Ricardian ‘Corn Rent. The Rental Market. Agricultural Surplus.
Characteristics of Landownership in Underdeveloped Agriculture and
Pakistan. The Theory of Share Tenancy. Some Extensions of the Share
Tenancy Model.
Tenant’s Status in Pakistan. Agricultural productivity in Pakistan and use of inputs.
49

Introduction. The Lewis Model. The Ranis-Fei (FR) Model. The Jorgenson
Model. Kelley, Williamson, Cheetham Model.
Criticism : Dual Economy Models. Agricultural Adequacy; Mellor’s Model.
Efficiency of Resource Utilization. Technological Change in Agriculture.
Generation of new Agricultural Technology. Factor-biased Technological
Change and its Distributional Consequences. Agricultural Technical
Change and Agricultural Employment: Empirical Evidences. Agricultural
Resources and Technical Change in LDCs: with Special Reference to
Pakistan.
Introduction. The Cobweb Model: An Illustration. Price-Supply Response in Backward Agriculture. A simple Supply Response Model.
Supply Response in the Underdeveloped Agricultural labour Market,
Specifically in Pakistan. The Concept of ‘ Marketed Surplus’: Some
Methods of Estimation.
Some Criticisms of Krishna’s Method and the Alternative Approach of
Behrman Perennial Crops and Marketed Surplus in Pakistan. Green
Revolution in Pakistan and Responses. Present Status of Green
Revolution in Pakistan: Empirical Analysis.
The Classical Model. Contra-Malthusian Model. Ecological Disequilibrium.
Synthesis of Population and Food Supply Theories. Malnutrition in
Developing Countries like Pakistan and Remedial Manners.
Choice of Planning Strategy for Agriculture Development, Agricultural
Project Planning.
Suggested Readings
1. Brown, Lester, The Social Impact of Green Revolution, New York,
The Greogie Endownment for International Peace, 1971.
2. Capstick Margret. The Economics of Agriculture, London George
Allen Unwin Ltd., latest edition.
3. Chaudhary M. Aslam, (1989), Agricultural Development and Public
Policies, Izhar Sons, Lahore.
4. Ghatak S., and Ingersent K., Agriculture and Economic Development,
(Latest Edition), Harvester Press.
5. Johnston, Bruce, F & Fellir Kily. Agricultural and Structural
Transformation, Economic Strategies in late Developing Countries.
6. Khan Mahmood-ul-Hassan. The Economics of Green Revolution in
Pakistan, New York, Published 1975.
7. Karamat, A., Political Economy of Rural Development in Pakistan,
Lahore Vanguard Book House, 1981.
50

8. Shafi M., (1995), Pricing of Farm Produce in Pakistan, Objectives,
Practices, and Experiences. Print Associates International,
Islamabad.
New York, Columbia University Press (1971).
10. Upton Marlin, Agricultural Production and Resource Use.
11. Colman D. and Young T., Principals of Agricultural Economics,
Markets and Prices in Less Developed Countries, (1989), Cambridge
University Press.
12. Yujiro Hayami and Vernon W. Ruttan, Agricultural Development, John
Hopkin University Press, London. (Latest edition).
-----------------------------
Meaning, Definition and brief Introduction of basic Concepts of Political
Economy. Economic and Political Integration. Policy Reform and Popular
Organization, key Social and Economic indicators. Political and Economic
Institutions and their role in decision making. Linkages of Politics and
Economics. Conceptualizing the Changing Global Order.
Problem of Power and Knowledge: New Millennium, Knowledge, Politics and Neo-Liberal Political Economy.
New Voices in the Globalization Debate: Green Perspective, Regional
Phenomena and State Order, New State Actors, Theory of Exclusion.
Regionalism and Globalization, The Political Economy of European
Integration, Regionalism in the Asia-Pacific Political Globalization and the
Competition State. Economic Blocks and Political Blocks.
International Politics and Transfer of Technology, Sector Specific
Development Limitation. Agriculture and Industry, Political Slogans and their Implementation, International challenge of poverty, The Political
Economy of food grain prices, Rural Development. Regional Exporting
Blocks and their Markets.
The Economics of Patronage, Seven Pillars of good Governance. The
Political Economy of Reforms. Pakistan - Dynamics of Elitist Model.
Strategies for self-preservation, A military Theocracy, Different Regimes,
Economic Development, Ethnic conflict, the Role of State. Emerging
Economic and Political Issues and their linkages. Regionalism, Poverty and Governance etc.
Economic Aspects, Poverty Eradication, Trade & Economic Cooperation,
Cooperation with Regional NGO's in South Asia.
Pakistan and SAARC: Composition of Trade, Foreign Trade Trends in
External Trade, Direction of Foreign Trade, Trends of Trade with SAARC. Future Economic
Prospects of SAARC.
51

Introduction, Economic Crimes, Terrorism & Insurgency, Theories of the
Economic impact of Law & Order.
A Review of Socio-Economic Situation in Pakistan, Urbanization, Housing,
Unemployment, Poverty, Juvenile Delinquency, Health Hazards.
Environment and Externalities.
Global Issues in Historical Perspective, Capital Mobility and Global Order,
Opening up of Services Sector and its benefitries. Will there be free mobility of factors of production? Capital, labor and entrepreneurs etc.
Multinationals: Objectives, Contribution and their Mobility.
Emerging World Financial Order. The Group of Seven and Political
Management of the Global Economy, Big Businesses and New Trade
Agreements, Trade Blocks.
Recommended Books
1. Azhar, H. Nadeem (2002), Pakistan: The Political Economy of
Lawlessness, Oxford University Press.
2. Gupta, S. Dev, The Political Economy of Globalization, Kluwer
Academic Publishers. (Latest eds.)
3. Hagen Everett E., The Economics of Development, Richard D. Irwin,
Inc. (Latest eds.).
4. Hussain Ishrat, (2004), Dollars, Debt and Deficits, Reform and
Management of Pakistan Economy, Oxford University Press.
5. ------------, (1999), Pakistan, the Economy of an Elitist State, Oxford
University Press.
6. Kardar Shahid, The Political Economy of Pakistan, Progressive
Publishers, Pakistan.(Latest eds.).
7. Kher, R.S. (2004), SAARC: Political & Economic Aspects, Dominant
Publishers and Distributors.
8. Noman Omar (1988), The Political Economy of Pakistan 1947-1985,
KPI, London and New York.
Economy and the Changing Global Order, Oxford University Press.
10. Szentes J., The Political Economy of Underdevelopment, Akademiai
Kiado, Budapest.(Latest eds.).
Introduction: Industrialization and Emergence of Labor Economics. Tools to Analyze Labor Markets and Conditions. Overview of Labor Issues in
Developing and Developed World.
Labor Market Indicators, Demand for Labor, Decision Making and Labor
Hiring. Labor Migration: Reasons and Impacts. Demand for Labor by
Firms, Short Run and Long Run Demand for Labor, Industry and Market
Demand.
52

Determinants of Labor Supply. Concepts of Human Capital, Human
Capital, Productivity and Wages. The Determinants, Labor Force
Participation. Supply of Labor and Household Productions. Labor – Skill,
Training and Productivity. The Dual Labor Market Theory. Labor Unions and Wages. Supply and Demand for Labor and Wage Determination.
Backward bending Supply Curve of Labor.
Determinants of Wages, Market Determination of Wages and Marginal
Productivity, High Wages and Involuntary Unemployment. Stagflation and
Unemployment, Structural Adjustment and Wages. Major Sources of
Unemployment, Wages and Phillip Curve. Wage Rigidity, Labor Unions and Unemployment. Unemployment and Social Protection.
Discrimination in Labor Market: Gender, Race and Ethnicity. Efficiency
Wage Theories and Coordination Failure.
Labor Market Information System and Efficiency, Labor Statistics and
Labor Policy. Human Welfare and Labor Policy, Minimum Wages,
Rationale and Impacts.
The Marxist, The Wells, Selling and Pearlman’s contributions. Trade
Unions in Pakistan, Labor Legislation in Pakistan. Impacts of Labor
Union. Labor Policies in Pakistan: Critical Evaluation.
Definition and extent of child labor. Child labor; moral aspects. Child labor an international issue: Extent of Child labor in developing countries. Child labor in Pakistan. Policies to combat child labor. Child labor and international trade issue.
Recommended Readings
1. Comith Stephen, (2003), Labour Economics, Routledge Publishers.
2. Bruce, Kaufman; e. Kaufman, Julie L; Hotchkiss, (2002), Economics of Labour Markets, Thomson Publisher.
4. Reynolds, Labor Economics and Labor Relations.
5. Orley, Ashenfelter (edt), Layard, P. R. G., (edt), Hand Book of Labour
Economics, Elsevier Science Pub. Co. (1986).
53

Basic Concepts, Meanings and Definitions of HRD by various Economists.
Human Capital Formation and HRD. Significance of HRD to wards economic development. Brief Historical background of HRD. Theories of
HRD by T.W. Schultz, Kuznets and modern economists. Factors of HRD.
Education, Science and Technology as factors of HRD, its role in HRD,
Social and Economic rate of return to Education
Food, Health, Nutrition and Clean drinking water as factor of HRD. Its impact on HRD.
Training and Skill development a component of HRD, its various forms and role in HRD.
Migration, its kinds and causes, impact on HRD, Brain Drain problem in
LDC’s, its impact on economy, migration of labour force, remittances and its impact on HRD and economic development .
.
Information, Globalization, WTO and their impact on HRD. Significance of information in HRD.
Concept of Manpower planning, its importance, factors and other allied concepts, stages of Manpower planning, forecasting of labour force in
LDC’s with special reference to Pakistan
Role of Women in HRD, Female Labour force participations rate,
Development of women for HRD, Development of HRD factors in women.
Earning of women and economic development Policies / Suggestions to develop the women in Pakistan.
Population profiles in Pakistan. Its salient features, its role in economic development and rate of return to education in Pakistan. Measures to improve the education for HRD in Pakistan, Poverty, Unemployment in
Pakistan. Labour force market information (LMIS) in Pakistan. Mismatch between the supply and demand of Labour forces in Pakistan and policies for improvement the population for HRD.
Analysis of the efforts regarding HRD in Pakistan, its implications and suggestions to improve HRD in Pakistan. A comparative Study of HRD in
Pakistan with other LDCS
54

Recommended Books
1. Chaudhary M. Aslam and Hameed, A., 1989, Human Development in
Pakistan, Feroze Sons, The Mall, Lahore, Pakistan
3. Ali, Karamat, 1998, Political Economy of Human Resource
Development, Feroz Sons, The Mall, Lahore
Islamabad Pakistan.
5. Khilji Bashir Ahmad. 2005, 50 years of Human Resource
Development in Pakistan, Shaheen Publishers, Faisalabad, Pakistan.
6. Kamal A.R, Human Resource Development in Labour Surplus
Economies PDR, PIDE, Islamabad.
7. Schultz. T.W., 1961 Investment in Human Capital American
Economic Review, Vol.51 USA
8. PIDE, 1999, Education and Earnings in Pakistan (Research Report
No.177, Islamabad, Pakistan)
9. Kuznets S., Human Capital and Development Issues.
10.
Federal Bureau of Statistics, 50 years of Pakistan, Islamabad
11.
Ministry of Finance, Economic Survey (Various Issues) Islamabad
12.
State Bank of Pakistan 2005, 50 years of Human Resources.
Different types of Regions, Micro Level (Regional), Political Blocks,
Homogeneous and Heterogeneous Blocks. Need for Planning for Local
Level Development; Techniques / Methods / Tools. Regional Aims of
Planning. Theoretical and Practical Problems of Regional Development
Planning. Combining Theory, Techniques and Practices of Development.
Linkage between Planning and Implementation at grassroots Level.
Aggregate and Regional Planning Techniques / Models. Inter-industry
Model. Theories of Inter-regional Economic Growth. Regional Policies and Alternatives. Shadow Pricing and Socio-economic Development.
Criterias for Development of Backward Areas.
Impact of Distance on Classical Economic Markets and Theory of Firms.
International and Regional Location Analysis of Industries. Spatial and
Economic Structure of Regions and Regional Development.
Agglomeration Economics and Industrialization Measurement of Regional
Economic Activities. Social and Economic Returns to Develop Backward
Regions.
Growth Poles. Project Economics and Planning. Centralized and
Decentralized Planning and Financing for Development. Rationale for
Decentralization and Functioning of Markets. Factor Mobility, Lack of
Local Resources and Financing Techniques. Sharing to Finance Local
Projects and Benefits. Cost / Benefits Analysis of Socially Uplifting
Projects. Social Returns to Local Projects.
International Inter-regional Economic Growth: Convergence-divergence debate. Regional Policies for Development and Regional (Provincial)
55

development in Pakistan; Planning, Implementation and Progress.
International Income Differential and Issues.
Recommended Books
1.
Armstrong, Harvey, (2000), Regional Economics and Policy, Black wall Publishing Company.
2.
Choi, Rok-Byung, (2003), High Technology Development in Regional
Economic Growth, Policy Implications of Dynamic Externalities,
Amazon.com.
3.
Davis H., Craig, (1990), Regional Economics, Impact Analysis and
Project Evaluation, Amazon.com.
4.
Hijkamp (Editor), Handbook of Regional and Urban Economics, North
Holland.
5.
Lee Roger (ed). (1997), Geographics of Economics, John Wiley and
Sons.
6.
Marshall Peter, (1998), Competitiveness, Localized learning and
Regional Development: Specialization and Prosperity in Small Open
Economies, (Routledge Functions of Political Economy),
Amazon.com.
7.
Mcker David L., (1970), Regional Economics: Theory and Practice,
The Free Press, New York.
8.
Philip McCann, (2001), Urban and Regional Economics, Oxford
University Press.
9.
Richardson Harry, W., (1985), Regional Development Theories in
Economic Prospects for the Northeast, (Editors), Harry W.
Richardson and Joseph H., Turek, Temple University Press,
Philadelphia, USA.
10.
Simon David, (1990), Third World Regional Development: A
Reappraisal, Paul Chapman Educational Publishing.
11.
Shrivastava D.S. (1985), Advanced Economics of Development and
Planning, Allied Publications, New Delhi.
12.
Thisse, Fujita, M.J., (2002), Economics of Agglomeration: Cities,
Industrial Location, and Regional Growth, Cambridge University
Press.
13.
Taylor, Jim, and Armstrong, H.W., (2000), Regional Economics and
Policy, Amazon.com.
14.
Treyz, George, (1993), Regional Economic Modeling: A Systematic
Approach to Economic Forecasting and Policy Analysis, Kluwer
Academic Publishers.
15.
Winters L. Alam, Regional Integration and Development,
Amazon.com, latest edition.
16.
Zaidi, Akbar, (1999), Issues in Pakistan Economy, Oxford Univ.
Press, Karachi.
56

Key Marketing Concepts, Scope of Marketing, Evolution of Marketing,
Importance of Marketing, Marketing as an Exchange Process, Marketing as a Demand Management Tool. Marketing Cost and Price Relationship.
Primary and Secondary activities in Supply Chain / Value Chain. Identify and Maximizing linkages within the Various Activities
The SMP Process. The BCG Matrix, GE Nine Cell Model and Porter’s
Generic Strategies Models of SMP.
International Marketing: The Target Markets & Marketing Mix
Identify Target Markets. Forecasting Market Demand, The Target Market
Strategies, Key Elements of Marketing Mix, Local Vs. International
Marketing, International Marketing Strategy and Planning, Organizational
Structure of International Markets, Exporting, Contracting, International
Corporations and their Marketing Techniques. The Promotional Program, the Key Components of Promotional Mix.
The Consumer and Industrial Products. Product Planning and
Development, Product Adoption and Diffusion, Product Life Cycle, Product
Positioning and Differentiation, Product Mix Strategies.
Marketing Cost, Finance and Cost Management
Analysis of Cost, Marketing Cost for Products, Reasons for Higher Cost and Methods to Minimize. Abuses and Advantages of Marketing Cost
Debate over Legitimacy Solution, Need for Marketing Finance. Kinds of
Marketing. Financing. Significance of Prices, Methods of Price
Determination. Key Pricing Strategies. Price wars.
Designing Distribution Networks. Channels Conflict and Channel Power.
Physical Distribution. The Wholesale Market, Retail Marketing.
Consumer Motive to Marketing, Models of Consumer, Buyer Behaviour,
Influences on Buyer’s Behaviour, Industrial Buyer Behaviour. Decision making behavior.
Industrial Analysis, Industry and Market Concepts of Competition,
Strategies of Leaders, Challengers, Followers and Nichers. Global
Marketing, Industrial Marketing, Services Marketing, Agricultural
Marketing.
57

Key Organizations for Marketing, Market Control, Marketing Audit.
Significance, Advantages of Market Segmentation, Segmentation
Variables, Segmenting Industrial Markets, Effectives of Segmentation,
Market Targeting, Strategic Opinion.
Theories of Pricing and Value. Supply and Demand Model, Mark-up
Pricing, Dumping, Economic Choice, Pricing and Market Orientation,
Market Share, Cost based Pricing, Customer based Pricing Methods,
Competitor based Pricing war.
Short-run and Long-run Pricing, Predicting Future Conditions Forecasting
Sales and difference Pricing Policies, Data Analysis and Sales
Forecasting, Survey and Price Analysis, Profit and other Motives for
Pricing.
Recommended Readings
1. “Basic Marketing” 8 th
Edition by Jerome McCarthy, Prentice Hall.
Orientation” 3
Management: rd
Edition by Boyd H.W., latest edition.
Edition by Evans Burman, McMillan Publishing Co., latest edition.
4. “Principles of Marketing” by R.D. Tousley, Eugene Clark, latest edition.
5. “The Fundamentals of Marketing” 11 th
Edition by Etzel, Walker &
Stanton, McGraw Hill (or latest edition).
6. “The Marketing Management” Millennium Edition by Philip Kotler,
Prentice Hall, latest edition.
Imaginary and Complex Numbers. Complex Roots. Circular Functions.
Properties of Sine & Cosine functions. Eular Relations. Alternative
Representation of Complex Numbers.
Dynamics and Integration. The Nature of Indefinite Integrals, Basic Rules of Integrations & Rules of Operation. The Substitution Rule and the Rule of Integration by Parts. Definite Integrals. Major Properties of Definite
Integral. A Definite Integral as an Area Under a Curve. Improper
Integrals. Economic Applications of Integrals – Finding Total Functions from Marginal Functions, Investment & Capital Formation, Present Value of Cash Flow. Present Value of a Perpetual Flow, Domar Growth Model.
58

Meaning and Definition; Homogenous & non-Homogenous Cases.
Solution of First Order Linear Differential Equation with Constant
Coefficient & Constant Term and its Verification. Economic Application:
Dynamics of Market Price. Solution and its Verification of First Order
Differential Equation with Variable Coefficient and Variable Term. Exact
Differential Equation, its Solution and Verification. Non-linear Differential
Equations of the First Order and First Degree. Bernoulli Equation,
Separable Variables. The Qualitative Graphic Approach. Concept of
Phase Diagram, types of Time Paths and their Dynamic Stability.
Economic Application: Solow Growth Model.
Solution and Verification of Second order Linear Differential Equations with Constant Coefficient and Constant term-Distinct Real Roots,
Repeated Real Roots and Complex Root Cases. Dynamic Stability of
Equilibrium. Economic Applications. A Market Model with Price
Expectations. The Interaction of Inflation and Unemployment. Solution of
Higher order Differential Equations with Constant Coefficient and Constant
Term. Convergence and the Routh Theorem.
Solution and its Verification of First Order Difference Equations. The
Dynamic Stability of Equilibrium. Economic Applications – The Cobweb
Model, A Market Model with Inventory. Nonlinear Difference Equations –
The Qualitative-Graphic Approach. Phase Diagrams Types of Time Path.
A Market with a Price Ceiling.
Solution and Verification of Second-Order Linear Difference Equations with Constant Coefficients and Constant Term-Distinct Real Roots,
Repeated Real Roots and Complex Roots cases. The Convergence of the Time Path. Economic Applications, Samuelson Multiplier-Acceleration
Interaction Model. Inflation and Unemployment in Discrete Time. Higher
Order Linear Difference Equations and their Solutions. Convergence and
Schur Theorem Again. The Solution of Simultaneous Differential
Equations.
The Nature of Non Linear Programming Non-Linearities in Economics.
Kuhn Tucker Condition. Interpretation of Kuhn Tucker Condition. Kuhn
Tucker Sufficiency Theorem: Concave Programming. Arrow Enthoven
Sufficiency Theorem: Quasiconcave Programming. Economic Application-
Utility Maximization, Least Cost Combination. Solving a Nonlinear
Program via the Kuhn-Tucker Conditions.
59

Recommended Books
1. Chiang A.C. Fundamental Methods of Mathematical Economics
McGraw Hill (3 rd
Edition) 1984.
2. Dowling Edward T. Mathematics for Economics Schaum Series,
1981.
3. Glass Colin J. An introduction to Mathematical Methods in
Economics McGraw Hill.
4. Haung David, S., Introduction to the set of Mathematics in Economic
Analysis Graphical Approach, Simplex Method, Economic Application of linear Programming N-Y John Wiley and Sons, latest edition.
5. Hoy M., Livermois J, Rees R, Stengos T., Mathematic for Economics,
1996. Addison0Wesley Publishers limited.
6. Weber E. Jean, Mathematical Analysis, Business and Economic
Application (latest edition), Harper and Row Publishers, Netherlands.
7. Allen R.G.D., Mathematical Economics, London, Macmillan English
Language Book Society.
8. Edey & Peacock, National Income and Social Accounting London,
Hutxchinson.
Introduction to international finance, International institutions, Funding
Mechanism of International Intuitions, Mechanisms and institutions for financing.
Foreign Exchange Rates (F.E.R): What it represents? Real, Nominal and
Effective Rates. Determinants of Foreign Exchange Rate. Efficient F.E.R
Market. Dynamic Theory of Interest and Exchange Rate. The Theory of
Spot Exchange Rate Determination. Capital Flow and Speculations.
Forward Exchange Market, Interest Arbitrage, Interest Parity Theory,
Speculators, Hedgers and Traders, Forward Exchange Rate Policy.
Purchasing Power Parity (PPP): Non-Trade Goods, Balance of Payment
Effect. Test of Exchange Rate Instability. Impacts of F.E.R. Rate
Instability. B.O.P: Income Absorption Approach to B.O.P. Elasticities of
Exports and Imports and Impact on B.O.P. The Marshall- Larner
Conditions. Monetary Approach to B.O.P. Monetarist Critique to the
Keynesian Closed Economy Model. B.O.P. Effects of Stabilization
Policies. Empirical Tests of Monetary Approach to the B.O.P. WTO and
B.O.P Support. Adjustment with Short-run capital Flow. Methods dealing with undesired Short-run Capital Flow.
Monetary and Fiscal Policies: Internal and External Balance. Monetary and Fiscal Policy with Fixed Exchange Rates. Problems of Small Country:
Fixed Exchange Rate, Free Floating Exchange Rate, Managed Exchange
60

Rate and Critical Review of The Fiscal – Monetary Mix Models. Fiscal
Policy and Temporary Payment Imbalances. Monetary Policy and
Permanent Payments Imbalances, A Random Walk Model of Payment
Imbalances. Critical Review of the Modern Theory and Adjustment
Mechanism.
Introduction of International Institutions, Role and Major Activities of IMF.
IMF Credit Facilities. Loan Mechanism, Value of SDRs. The Optimum
Quantity of Reserves, Optimum Interest Rate. Euro-Dollar, Dollar
Exchange and Impacts. Role of IMF in B.O.P Support and Stabilization.
Facts on International Capital Flow: ASEAN Crisis and Role of
International Institution and Criticism. Motive for Capital Movement:
Return and Risk Diversification. Why disagreement on International
Movement of Labour? Welfare Impacts of Labour Movements. Factors of
Production and Price Equalization Issues. Losses of National Sovereignty.
Can Developing Countries Compete and Gain from Trade: Terms of Trade due to Demand Pattern and its Impacts. What Counts for wage Differential
Between Primary Goods Producer and Value Added Goods Producer,
Competitiveness Issue.
WTO: GATT and Emergency of WTO. Why necessary to Join WTO?
WTO: Expected Impacts on Trade, Liberalization and B.O.P; Special
Status of Developing Countries and Net Food Importing Countries.
Protections under WTO Rules. Are Free Trade Gains more than
Restricted Trade? Gains for whom; how much and how long? Centre-
Periphery Theory.
Development Experience, Approaches, Policies and Outcomes.
Identification of Issues: The era of 1950’s, 1960’s, 1970’s, 1980’s 1990’s and 2000’s. Structural Change and Sources of Growth. Emergence of
Economic Issues, Human Resource Development, Unemployment,
Poverty, Income Distribution, Debt, Deficit etc. Growth with limited development in Pakistan.
Agricultural Development Policies and Priorities, Major Targets of Develop
Plans and Emerging Issues; Neglects and Successes: Mobilization of
Domestic Resources; Shortages, Deficits and Role of Foreign Aid.
Agricultural Vs. Industrial Development Debate. Agricultural Adequacy.
61

Pattern of Agricultural and Industrial Development, Land Reforms and Its
Impacts, the Role of Green Revolution and its Impacts: Present Status.
Agricultural Price Policy and Income Tax. Sectoral Terms of Trade.
Industrial Development Policies and Strategies. Development of Large and Small Industries. Value Added: Manufacturing Goods Vs. Primary
Goods Production. Agriculture Vs. Industry: Development Debate.
Sectoral Priorities and Development Issues. Human Resource
Development and Emerging Issues: Population Growth, Labor Force
Participation Rate and Employment Pattern, Unemployment and
Underemployment, Forecasting Manpower Needs and Employment.
Strategies to combat unemployment. Criteria to Measure Unemployment /
Underemployment: Time Criterion, Productivity Criterion and New Index of Unemployment: Application to Pakistan and Empirical Evidences. Good
Governance, Social Action Plan and its Impact. Role of Institution in
Development. Social Sectors development Vs. High Return Sectors:
Growth trade off.
Concepts of Foreign Aid and Debt. Borrowing Vs. Domestic Reserve
Mobilization (failure). Size of Foreign Debt, Debt Saving and its Impacts.
Strategies to combat with High Debt: Saving Policy, Foreign Trade
Promotion, Cutting non-development Expenditures, Rescheduling and its
Impacts. Debt Management in Pakistan and Its Impacts. Debt Modeling and Future Implications.
Pattern of Income Distribution: Rural and Urban. Definitions and
Approaches to Measure Poverty: Income Approach, Expenditure
Approach, Basic Needs Approach, Poverty of Participatory Index (POPI).
How to Combat Poverty; Growth Strategy, Basic Needs, Labor Intensive
Investment: Education / Training etc. and Social Action Plan (SAP) , its
Role and Critical Review, Evasion of Policies / Strategies to Combat
Poverty and Improving Income Distribution: Critical Evaluation. Neglect of
Human Resource Development. Child Labor. Factors Productivity Issues.
Sources of Inflation in Pakistan. Policies to Combat Inflation and their
Impacts. Trade Performance, Instability and its Impacts. Policies to
Combat Deficit and Trade Instability. WTO and Its Impacts. Reforms and
Further Needs. Expected Impacts of WTO and Challenges. Terms of
Trade Issues, Market Access and Health Related Rates.
Recommended Books
Book Centre, Lahore, 2001-2002.
62

2. Chaudhary M. Aslam and Ahmad Eatzaz: Globalization, WTO and
Trade Liberalization in Pakistan, FerozSons, Lahore (2004).
3. Chaudhary M. Aslam, Human Resource Development and
Management in Pakistan, Ferozsons, Lahore (1989).
4. Khan, Shahrukh R., 50 Years of Pakistan’s Economy – Traditional
Topics and Contemporary Concerns. Oxford Univ. Press, Karachi
(2000).
5. Mahbool-ul-Haq Centre for Human Development (MHCHD), Poverty
Profile of Pakistan, (1989) Oxford University Press.
6. -------------- Human Development In South Asia, Annual Report.
7. Saeed, Khawaja Amjad, The Economy of Pakistan, Karachi: Oxford
University Press, 2004.
8. Zaidi, Akbar, (1999), Issues in Pakistan Economy, Oxford Univ.,
Press, Karachi.
(
History, Meanings and introduction to Operations Research. Art of modeling and phases of Operations Research. Discussion on different types of Operations Research models.
Meanings and objectives of Linear Programming Models. Formulation of
Linear Programming model/problem. Solutions of linear programming problems:
(a) Graphical approach
(b) Algebraic solution (Simplex method, M-technique and two-phase method).(c)Degeneracy, Alternative optima, unbounded solutions and Non-existing solutions.
Definition of the dual problem. Primal Dual relationship. Economic interpretation of duality. Sensitivity Analysis.
Definition and application of the transportation model. Solution of the transportation problem. The Assignment model, solution and application of assignment model. The transshipment model.
Meanings and purposes of Project Scheduling. Arrow diagram representation, determination of critical path and floats Construction of
63

time chart and resource leveling. Probability and cost considerations in project scheduling. Project control.
Meaning and objectives of Inventory model. Formulation of generalized inventory model. Types of inventory model:
(a) Deterministic Models: Single-item static model, single-item model with price breaks, multiple-items static model with storage
Limitations, Single-item N-period dynamic model and N-period production scheduling model.
(b) Probabilistic Models: A continues review model, single period models and multi period model.
Elements of the Dynamic model. Examples of dynamic programming models and computations.
Books Recommended
1. Bunday, Brian D., “Basic Linear Programming,” 1st edition, 1984
,Edward Arnold.
2001, McGraw hill
3. Hamdy Taha. A., “Operations Research An Introduction,” 7 th
edition,
2002, Prentice Hall.
4. Hillier and Lieberman., “Introduction to Operations Research,” 7 th edition, 2002, McGrawhill.
5. Wagner, Harvey.M., “Principles of Operations Research,” 2nd edition,
2001, Prentice Hall.
Reference Books
Linear Optimization” 2nd edition, 1997, Anthena Scientific.
7. Fryer M.J “Introduction to Linear Programming and Matrix Game
Theory”. 1st edition 1978, Edward Arnold.
8. Gass M.J, “Linear Programming Methods and Application, ” 1st edition, 1975, McGraw hill.
9. PAUL-A-JENSEN & JONATHAN F.BRAD, “Operations Research
Models and Method, ” 1st edition, 2002, Wiley.
10. WAYNELWINSTON, “Operations Research Application & Algorithm, ”
3rd edition 1994, Duxbury Press.
Operating System, Performance Management, Desktop Management,
Printer Management, Internet Explorer, E-mail. MS-Word, using Advanced
Formatting Features, Sharing data with Word, Word Macros, Composing
Models and Mathematical Equations.
64

Database Concepts, File Linkages, Data Retrieval, Data Editing /
Updating. Data Transferring.
Menu, Tool Bars, File Linkages, Dialog Boxes. Data Analysis, Analysis of
Variance. Simple and Multiple Regression Analysis, Formatting Reports,
Creation and Modification of Chart, Line Area and Pie Chart. Output
Navigator Printing, Data Editor Printing, Command Syntax Printing. Use of E-view for Model Estimation.
Use of Computer, SPSS, E-View to Estimate Production Functions.
Cob-Douglas Production Function, Constant Elasticity Production Function etc.
Estimation of Demand and Supply using E-View / SPSS. Aggregate
Demand – Aggregate Supply and Equilibrium.
Building Simple Econometric Models and Estimation. Single Equation
Models, Multiple / Simultaneous Equation Model. Interpretation of
Computer Output.
Use of Computer Programming (Softwares), E-View etc. for Cost-Benefit
Analysis, Estimation of Present Values, Estimation of Economic and
Social Benefits. Project Appraisal Using E-View etc. Estimation of Cost
Functions and Decision Making.
Regression Functions. Estimation with Qualitative Variables Confidence
Interval and Hypothesis Testing. Estimation and Improving Model
Estimates: Autocorrelation, Estimation of Simultaneous Equations.
Estimation of VAR and ARIMA Models.
Recommended Books
1. E-View Manual, (Learning help available with package (software)).
2. Gimi, Carter and Annette, Marquis, with Karl Browning, Mastering
Microsoft Office XP Premium, Selection B.P.B., Publishers, New
Dehli , (2001).
3. Robertson, D.F., Computer Applications and Programming, Har Brace
Jovanovich Inc. USA (latest edition).
4. SPSS-Manual.
65

Fundamental beliefs: Unity of Allah, Prophet-Hood and the Eternal
Message of the Holy Quran, Resurrection and the Day of Judgment – the
Concept of Accountability.
The overall value system of Islam: Piety, Brotherhood, Cooperation and mutual benevolence, Equality, Distinction between Halal and Haram,
Moderation and Tolerence,
ii. Family System and the Law of Inheritance iv. The Institution of Interest and its Inconsistency of in an Islamic System
i. Forms of Business Organization ii. Financial System: Central and commercial banking, Financial instruments iii. The Fiscal System: Taxation, Zakah & Usher, Revenues and
Expenditure iv. Equity and Efficiency in Islamic Economic System cooperation among Muslim countries, responsibilities towards
International pacts.
Goals and Strategies, Poverty alleviation and equity in distribution,
Balance between moral and material growth.
Brief comparison with the conventional capitalist system,
A brief account of various initiatives towards Islamization of the economies with special referece to Pakistan, Iran, Sudan and other Muslim countries.
Suggested Readings
IV, National Bank of Pakistan Karachi (1980)
2. Khurshid Ahmed (Ed) Studies in Islamic Economics: Paper 8, 9,
King Abdul Aziz University Jeddah and The Islamic Foundation UK
(1980)
66

7, 13, International Centre for Research in Islamic Economics, K.A.U.
(1982)
5. Ziauddin et al (Ed) - Money and Banking in Islam: Selected parts
King Abdul Aziz University and Institute of Policy Studies Islamabad
(1983)
6. Ziauddin et al (Ed) - Fiscal Policy and Resource Allocation in Islam:
Selected parts King Abdul Aziz University and Institute of Policy
Studies Islamabad (1983).
Sh. Muhammad Ashraf, Lahore (1987)
8. Munawar Iqbal (Ed) -Distributive Justice and need Fulfillment in an
Islamic Economy: Paper International Institute of Islamic Economics,
IIU (1986)
9. S.M. Hasanuzzaman Economic Functions of an Islamic State:
Chapter 1, 2, The Islamic Foundation, Leicester UK (1991)
10. M. Umer Chapra Islam and Economic Development: Selected parts
Inter. Inst. of Isl. Thought and Islamic Research Institute Islamabad
(1993)
11. M. Hussain Chaudhry Economic Theory Volume I: Part II Chapter 2 –
Economic Systems ILMI Book House, Urdu Bazar Lahore (1999)
12. Hafiz M. Yasin, Economic System of Islam: (Mimeographed) – (1993).
Development of business management Business management in social market economy Basic questions of business management.
Business management as a unit of economic sciences Experience of business management Perceiving subject matter of business management. Tasks of business management.
Meaning of leadership. Theories of leadership. Functions of leadership
Models of leadership. Instruments of leadership.
Organization as instrument of leadership. Basic questions about formation and integration of organizational subsystems. Organizational process management. Organizational structure Organization and business development.
67

Procurement and preparation of information. Information technology and information management. Accountancy. Balance sheets. Cost accounting. Forecasting
Fundamentals of personnel management. Personnel management as organizational bargaining. Disposition of personnel potential. Influence on personnel behaviour. Peripheral behavioural aspects of personnel management.
Identification of performance process. Operating efficiency of performance process Phases of performance process.
Recommended Books th
Edition, Kreitner 2002. rd
Edition by Chandan 2005.
3. Administration and Management by Shukla, New Delhi 2004.
4. Asian Management System by Min Chen, 1998.
5. Behavior Management, A Whole School Approach, Rogers 2000.
7. Communication Management, Diwan, 2000.
8. Hand Book of Time Management, Roverts, 2003.
2000.
10. Productivity Management, Olomolaiye 1998.
11. Foundation in Strategic Mnagement, 2 nd
Edition, Harrison 2002.
12. Global Leader Critical Factors for Creating the World Class, Brake
1997.
13. Global Marketing Management, 4 th
Edition, Quelch 1998.
14. Investment Analysis and Management, 8 th
Edition, Jones, 2002.
15. Leadership: Fast Track MBA Series by Sadler, 2004.
Users of information. Their objectives with regard to the information. The integrity of the information. Specific characteristics of the information.
Assets. Liabilities. Creditors. Owners equity. The accounting equation
Effects of business transactions on the accounting equation. Income statement of Cash Flows.
Forms of Business Organization. Sole Proprietorships. Partnerships.
Corporations.
68

The ledger. The use of accounts. Debit and Credits entries. Recording transactions in ledger accounts. The Accounting Cycle: Preparing Annual
Report. Adjusting Entries. Preparing the Statement. Worksheet
Cash. Short-Term Investments. Accounts Receivable. Interest Revenue
The flow of Inventory Costs. Taking a Physical Inventory. Evaluating the liquidity of Inventory
Depreciation. Disposal of Plant and Equipment. Intangible Assets
Plant transaction and the statement of Cash Flows
Current Liabilities. Long-Term Liabilities. Special Type of Liabilities
Preparing a Statement of Cash Flows. Cash Flows
Financial and Nonfinancial Consideration. Evaluating Capital Investment
Proposals. Payback Period. Return on Average Investment. Discounting
Future Cash Flow
Recommended Readings
1. Accounting, the Basis for Business Decisions, Meigs William Haka
Bettner. Eleventh Edition, 1999.
2. Business Accounting 1, Frank Wood and Alan Sangster, Eighth
Edition.
3. A review of essentials of accounting, Robert N. Anthony, 4 th
Edition.
Massachusetts: Addison Wesley, 1988.
History of Population Growth Population/labor as a factor of production:
Population theories; Components of population changes: Sources of demographic data; National Population survey. Economic and Social
Determinants of population trends and their consequences; Population policies and their impacts; Population programs in Pakistan and their impacts; Regional / provincial distribution of population in Pakistan; Impact of Population Growth on Economic Development.
69

MS
1/2
st
Course
No.
ECON 501 Advanced
Microeconomics#
ECON 502 Advanced
Econometrics#
ECON 503 Optional (Economics)
ECON 504 Optional (Economics)
Hours
3
3
.
No
Subject Credit
Hours
4
Macroeconomics
#
Pakistan 3
Economy#
3 ECON 507 Optional
(Economics)
ECON 508 Optional
(Economics)
3
nd
Econ. 509 MS Dissertation / Thesis 09
70

All optional courses are of three credits each
Course # Subject
Econ.511 Islamic Economics– Theory &
Policy
Course # Subject
Economics
Econ.513 Economics of Business and Eco. 520
Finance
Econ. 521 Topics in Labor Economics
Topics in Urban Economics
Econ.530 Optimization Techniques
Econ. 602
Econ. 541
Econ. 551
Investment Decision Making
Topics in Public Sector Topics in International
Economics Economics
WTO, Globalization & Population Dynamics
Economic Integration
Econ . 541 Topics
Economics
Econ. 605
Econ. 593
Econ. 591
Econ. 580 in
Welfare Economics
Production Analysis
Monetary
Econ.592 economic Change
Institutional and Behavioral
Economics
Topics in Human Resource Econ. 590 Topics in Development
Development Economics
Advanced Econometric
Techniques and Forecasting
Economics of Environment &
Natural Resources
71

Systems of Consumer Demands, Duality and Empirical Demand Models;
Production Theory, Production Functions and Cost Functions; Firm’s
Behaviour under alternative Market Structures Various types of utility functions, Properties of demand systems, Marshallian, Hicksian and
Slutsky’s demand functions, Indirect utility function, Expenditure function,
Cournot and Engel aggregations. CES and Translog production function.
Income Leisure Model. Game Theory, The pay off matrix of a Game, Nash
Equilibrium, Sequential Equilibrium.
Uncertainty, Information asymmetry, Moral Hazards and adverse selections, Welfare Economic in Standard Neo-classical setting ; core of an economy, strategic behavior and collective choice; interteproal choice under perfect foresight and uncertainty
Books Recommended
1) Layard, P.R.G and A. A. Walters, Microeconomic Theory, (Latest
Edition) McGraw Hill Publishing Company.
2) Varian, H.R. Microeconomic Analysis, Norton and Company, New
York
3) Silberberg, E. The Structure of Economics: A Mathematical Analysis.
McGraw Hill Publishing Company.
4) Henderson & Quandt, Microeconomics: A Mathematical Approach,
Latest Eds.
General Linear Regression Model: Basic structure, assumptions, and estimation of single equal model using Ordinary Least Square (OLS)/
Maximum Likelihood Estimator (MLE). Use of matrix algebra in inference related to multiple regression analysis. Handling econometric problems like multicollinearity, autocorrelation and heteroscedasticity. General linear aggression model, generalized least squares and maximum likelihood estimation; Hetetroscedasticity / Autocorrelation Consistent (HAC) estimator, dummy variables and structural shifts; non linear models and estimation algorithms, panel data seemingly unrelated equations and simultaneous estimation. Estimation with limited dependent variables, data censuring and selectivity bias.
Concept of stationary, analysis of stationary and integrated data, generalizing process, ARIMA models, forecasting and time series decomposition; analysis and decomposition of forecast errors. ARCH
72

models and risk return analysis; VAR models. Casualty influence, response analysis and multivariate decomposition and co-integration and error correction analysis.
Generalized least squares method. Use of dummy variables. Use of
Instrumental variables. Cross-Sectional / Panel Data: Estimation of single equation models for cross-sectional and panel data. Fixed and random effect models. Estimation of dynamic panel data models.
Varying coefficient models : Causes of coefficient variation. Randomly varying coefficient models. Systematically varying coefficient models. Time Series
Analysis : ARIMA Models. Comparison of forecast based on ARIMA and regression models. Unit roots and co-integration. Dummy trap and its detection.
Econometric forecasting : Stationarity, impulse response analysis. ARCH
Models, VAR Models. Co-integration and error correction models.
Recommended Books
1. Greene, W.H. 2004. “Econometric Analysis”. 5 th
edition. New York.
Macmillan.
2. Enders, Walter. 2005. “Applied Econometric Time Series”. New York.
John Wiley & Sons.
3. Johnston and Dinardo. 1997. “Econometric Methods”. McGraw-Hill
/Irwin.
4. Hasio. 2002. “Panel Data Econometrics”. Cambridge University Press
2 nd
Edition
5. Kennedy, P. 2003 “A Guide to Econometrics”, 5 th
edition, The MIT
Press,
6. Wooldridge, J. 2001 “ Econometric Analysis of Cross Sectional &
Panel Data” The MIT Press
Brief review of macroeconomic revolutions, classical new classical, monetarist and activist contributions. Microeconomic foundations for
Macroeconomic Analysis. Macroeconomic Disequilibrium models. Static
Model: Consumption investment and money demand functions in classical, Keynesian and monetarist frameworks, IS-LM model.
Closed Economy Macroeconomics : Aggregate demand and fiscal policy, aggregate demand and money supply, relative effectiveness of fiscal and money policies in cases of interest inelastic investment demand and liquidity trap, arguments of ‘crowding out’ and Ricardian equivalence’ against fiscal policy, supply-side view of government taxation. Crowding in hypothesis.
Open Economy Macroeconomics: Various Theories of Balance of
Payments. Determination of equilibrium exchange rate. Exchange Rate
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Management under fixed, floating and managed float system. Mundell-
Fleming Model. Effectiveness of Monetary and Fiscal Policies under various exchange rate arrangements.
Rational Expectations And Policy Implications: Expectations augmented
Phillips Curve. Rational expectations hypothesis and policy ineffectiveness proposition.
Trade Cycles: Major trade cycle theories, Castrophy theory, Kaldor models, Hicks models, Random walk model, Multiplier accelerator model.
Real business cycle.
Govt. Debt and Ricardian equivalence inflation of unemployment trade of monetary and fiscal policy; failure and unemployment, short term long tern aggregated supply curves and effectiveness of policy. What we know what we do not know about macroeconomics
Recommended Books
1. Romer, David (2001) Advanced Macroeconomics 2 nd
edition, New
York: McGraw-Hill.
2. Blanchard, Olivier (1997) Macroeconomics. London: Prentice-Hall.
3. Abel, A.A. and Ben S. Bernanke (1998) Macroeconomics. 3 rd edition, New York: Addison-Wesley.
4. Taylor, John B. and Michael Woodford (editors). Handbook of
Macroeconomics (volumes 1A, 1B & 1C), North-Holland Elsevier
Science, Amsterdam, 1999.
5. Dornbush & Fisher – Macroeconomics, latest edition ( Latest eds.)
McGraw Hill Inc.
Identification of major economic issues; development pattern, policy and emergence of economic issues, poverty, unemployment and inflation etc. neglect of human development; financial allocation, strategies and priorities. Financial restructuring in Pakistan: financial reforms, Autonomy of central bank, privatization of financial institutions. Resource mobilization and public debt, text structure: direct and indirect excess. deficits and inflation crises. Public debt sustainability, fiscal responsibility law. Fiscal relations after devolution plan. Neglect of institutions development and its impacts: state, market and civil institutions. Balance of payment, deficit, trade stability, foreign trade and development. Resilience of Pakistan’s external sector, remittances inflow and its impact, export competitiveness and diversification. Recent trends in international trade. Major sources of economics growth in Pakistan, Research and development poverty and income distribution. Governance issue, politics and economic development. Unemployment and under employment. Current economic policies and economic development.
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Reference Books
1. Chaudhry M. Aslam and Hameed, Abdul (1999), Human Resource
Development and Management in Pakistan, Feroz Sons, Lahore,
Pakistan
2. Chaudhary M. Aslam and Eatzaz A. (2004), Globalization: WTO and
Economic Reforms in Pakistan, Feroz Sons, Lahore Pakistan
3. S. Akbar Zaidi, Issues in Pakistan’s Economy, (Latest eds.).
5. State Bank of Pakistan Annual and Quarterly Reports
6. Ministry of Finance (Government of Pakistan) Economic Survey
7. Troubled Times in the Age of Extremes published by Sustainable
Development Policy Institute, Islamabad. 2006
8. 50 Years of Pakistan Economy, State Bank of Pakistan 2006.
Introduction to Islamic Economics: Definition, nature and theoretical foundations of Islamic Economics, conceptual differences between Islamic and Conventional (Neoclassical) Economics, Positive versus Normative
Economics, the Islamic value system and economic behavior.
Consumer’s Behavior: Absolute versus limited freedom, restricted set of preferences, distinction between lawful and prohibited activities (Halal-
Mubah and Haram-Makruh), moderation in consumption, altruism, disposable income after charitable donations (Zakah, and Sadaqat), Utility function and consumer’s equilibrium in an Islamic framework.
Behavior of the Firm: Business Ethics in Islam, Permissible and prohibited activities, Cooperation and Coordination for social advantage, behavior of the firm, Forms of business organization: Proprietorship, Partnership
(Muzara’h, Mudharbah, Mushrakah), Joint Stock Company (Sharikah),
Factor pricing, the status and role of labor in Islamic perspective, market structure and resource allocation.
Money and Banking: The concept of Riba (interest): its interpretation and implications, rationale for prohibition of interest based transactions and gambling, models of interest-free commercial banking, financial instruments, Principles of financial contracts, insurance in Islamic perspective, Distribution in Islamic Perspective: Functional versus personal distribution, distributive justice as the pre-requisite for social justice, Islamic emphasis on wider circulation of wealth, share of the poor and destitute in wealth of others, guarantee for basic needs and sustenance, importance of Zakah.
Monetary Policy in Islamic Framework: The role of central bank: its powers and limitations, rudiments of a just monetary system, issues in interestfree financial system, Islamic banking practice: problems and prospects, formulation and implementation of monetary policy in Islamic State,
Inflation and indexation.
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Fiscal Policy and Role of the State: Sources of revenue and heads of expenditure of an Islamic state, the scope for taxation, Objectives of fiscal policy: Justice in distribution and elimination of poverty, Economic impacts of Zakah & Usher: the multiplier effect, efficiency, equity, growth.
Economic Development and Planning: The extended role of an Islamic
State, Economic growth as a component of the overall social development, Goals and strategies of development planning, emphasis on education and skill development, balance between moral and material growth, the problem of unemployment and remedial measures.
Islamization of the Economy: Islamic revival movement, efforts towards
Islamization of the economies in Islamic world with special reference to
Pakistan, reports of the CII and implementation issues, the role of various organizations for coordination among Muslim countries: OIC and ECO, the role of IDB (Jeddah) toward Islamization of the financial system, issues in
Islamic Economics and Finance.
Suggested Readings
1. Khurshid Ahmed (Ed) Studies in Islamic Economics (1980).
King Abdul Aziz University Jeddah and The Islamic Foundation UK
2. Muhammad Arif (Ed) Monetary and Fiscal Economics of Islam:
(1982). King Abdul Aziz University, Jeddah KSA.
3. Ziauddin et al (Ed) - Money and Banking in Islam: (1983)
King Abdul Aziz University Jeddah & Institute of policy Studies
Islamabad
(two Books), The Islamic Foundation, Leicester UK (1983)
5. Ziauddin et al (Ed) - Fiscal Policy and Resource Allocation in Islam:
(1983). King Abdul Aziz University Jeddah & Institute of policy Studies
Islamabad
6. Munawar Iqbal (Ed) -Distributive Justice and need Fulfillment in an
Islamic Economy (1986), IIIE, International Islamic University,
Islamabad
System , Council of Islamic Ideology, Govt. of Pakistan (1983, 1994)
8. M. Umer Chapra, Just Monetary System (1993)
IIIT New York and Islamic Research Institute, IIU Islamabad
9. M.A. Manan and Economic Development in Islamic Framework
(1996) Mehboob Ahmed (Ed). IIIE, International Islamic University,
Islamabad.
10. M. Akram Khan Issues in Islamic Economics (1983)
Islamic Publications Ltd. Lahore.
11. Muhammad Ayub, Islamic Banking and Finance: Theory and Practice
(2002). State Bank of Pakistan, Karachi
12. M. Taqi Usmani, The Historic Judgment on Interest by the Supreme
Court (2000) Idaratul-Maarif Karachi
(1999), Oxford University Press, Karachi
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14. M.N. Siddiqi, Dialogue in Islamic Economics (2002)
Institute of Policy Studies, Islamabad.
15. M. Imran Ashraf Meezan Bank’s Guide to Islamic Banking (2002)
16. IRTI, IDB Islamic Economic Studies, the Quarterly Journal of the
IRTI, Islamic Development Bank, Jeddah, K.S.A.
Definition, scope, and importance of Agricultural Economics, Agriculture as an industry, its peculiarities and role in national economy, Organization and structure of agriculture sector. Agricultural production function,
Production elasticity of inputs, Marginal rate of technical substitution,
Elasticity of substitution, Profit maximization, Input demand function,
Product supply function. Profit maximization with multiple inputs and multiple products. Risk management in agriculture. Linear programming application in agriculture, Duality, Sensitivity analysis, Solving linear programming problems using computers. Important indicators of agriculture sector in Pakistan economy, Issues of agriculture sector in
Pakistan, Farm level and marketing problems, Impact of policy on agriculture. Land utilization and land use policy, Land tenure systems and land reforms in Pakistan, International trade and agriculture sector of
Pakistan.
Recommended Books
1. Beattie, B.R. and C.R. Taylor. The Economics of Production. Krirger
Pub. Co. 1993.
2. Beneke, R.R., 1973 Linear programming applications to Agriculture
Iowa State University press, Ames, Iowa.
3. Doll, J.P. and F. Orazam. Production Ecomomics Theory and applications 2 nd
Ed. John Wiley & sons 1984.
4. Debertin, D.L. Agricultural Production Economics 2 nd
Ed. Kentucky.
1994
5. Hazell P.B. R. Mathematical programming for Economic Analysis in
Agriculture Macmillan Pub. Co. 9Latest eds.).
6. Azhar, B.A. Pakistan Agricultural Economics. National Book
Foundation, Pakistan. 1996.
7. Government of Pakistan. Pakistan Economic Survey 2004-05 (or current issue).
8. Agricultural Development, An International Perspective, Hayami Y, and Ruttan, V. W., Johns Hopkins Press, (Latest eds.).
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Role and functioning of business firms; mechanism of economic control of business, government regulations and behavior of business firms, financial analysis and planning, financial leverage, financing in imperfect markets, asset pricing theory in continuous time, optimal portfolio and consumption decisions of investors including dynamic programming and martingale approaches, the pricing of contingent claims and the equilibrium asset pricing models (CAPM, ICAPM, CCAPM) and the APT.
Survey of regional economic analysis impact of distance on classical economic markets and theory of the firm; industrial and residential location analysis; regional delineation; factor mobility; gravity models; regional economic growth and its measurement; urban and regional economic planning; cost-benefit analysis and economic base analysis.
Life-cycle human capital accumulation; models of learning and sorting; patterns of wage growth and mobility decision; intergenerational transmission of inequalities in human capital; link between specialized human capital; coordination costs and extent of the market; rates of return to education and income inequality; wage structure and income distribution; allocation of time within households; empirical aspects of female labour supply.
Classical, linear and non-liner optimization problems and applications in economics; alternative approaches to dynamic optimization in continuous and discrete times; lifecycle models with and without perfect foresight; capital accumulation, human resource development optimum growth and dynamic efficiency.
Conventional theories and models of economic growth and technological progress; overlapping generations models, optimal growth and dynamic efficiency; endogenous growth, convergence and growth externalities, capital markets imperfections, transaction costs, economic growth and the role of inter-country capital flows, empirical growth models and studies on economic growth.
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Various investment criteria for selection of a project; methods of financing; evaluation of project; techniques of cost benefit analysis of investment projects; uses of shadow prices; problems of estimating benefits in highway, irrigation, power and other projects; impact evaluation of project; estimation of cost of congestions, externality analysis, externalities and economic analysis; social return.
Public goods, externality and congestion; distribution and economic welfare; public expenditure evaluation principles; theories of taxation; increasing returns, imperfect competition, externality and growth; public capital, human capital and growth dynamics; resource gaps, capital flows and debt dynamics.
Microeconomic aspects in international economics; theories of international specialization and exchange; trade policy and economic welfare; international factor movement; trade and growth; trade and technical progress; trade policy and welfare economics. Product cycle,
H.O. Theorem and factor price equalization, Regional blocks trading, WTO and trade liberalization. B.O.P. deficit and approach to pure B.O.P.
Determinants of foreign exchange rates. Foreign direct investment, international institutes and their role, IMF, World Bank etc.
Major WTO rules and their implications; WTO and LDC’s, emerging issues; liberalization and efficiency improvement; free trade and efficiency gains, theory of economic integration; institution of economic integration; custom union theory; empirical research on the trade and welfare effects of monetary system and macroeconomic policy; NAFTA, ASEAN, APEC,
SAARC and ECO; regional industrial and social policy; meaning of globalization; effects of globalization on developed and developing countries.
Population theories; population growth and economic development; fertility: trends, determinants and female labour market behavior, mortality and issues of population ageing; demographic profile of the population and population dynamics; population growth and the environment; spatial distribution of population, internal migration and urbanization; population policies and the health sector.
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Alternative views about monetary policy (classical, Keynesian, monetarist, new classical); monetary policy in an international framework; money demand and empirical evidence; money in growth models; money in overlapping generations models; inflationary finance; burden of government debt and government borrowing; current issues in monetary and financial sector reform.
General linear regression model; ordinary least square and summary statistics. Generalized least squares and maximum likelihood estimation; dummy variables and structural shifts; non-linear models and estimation algorithms, panel data seemingly unrelated equations and simultaneous equations; estimation with limited dependent variables, data censuring and selectivity bias.
Concept of stationary, analysis of stationary and integrated data, generalizing process, ARIMA models, forecasting and time series decomposition; analysis and decomposition of forecast errors. ARCH models and risk return analysis; VAR models. Casualty influence, response analysis and multivariate decomposition and co-integration and error correction analysis.
Introduction: Overview of economic growth theories, dependency theory, market friendly approach and catching up hypothesis. Economic policies and programmes for regional specialization and diversification; issues of irrigation and water management; agricultural labour force and mechanization; taxation and credit in agricultural sector; integration of farm enterprises; non-renewable resource policy; land markets and land use issues; comparative analysis of water resource project; foreign trade and economic development. Financial development and its role in economic development. Human resource development and its role in economic development. Employment, underemployment and employment issues.
WTO and developing countries, Trade, Aid and Growth. Environment and development. Institutions and economic development. Structural
Adjustment Programmes and their impacts. Income distribution, poverty and economic growth.
Role of human resources in economic development; investment in education; rates of return to education and distribution of earnings; health, nutrition and productivity of human resources; mobility and migration of human resources; strategies of human development; women and human resource development; financing of human resource development; human
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development indexes. Employment and employment models determinants of employment, underemployment, returns to investment in human capital.
An overview of environmental and resource economics; optimal extraction of non-renewable resources; imperfect competition in natural resource markets; economics of mining taxation; international trade and natural resources; the economics of water use; the economics of energy; externalities; endogenous environmental risk; standard vs. taxes in population control; tradable permits in economic theory; comparison of instruments of environmental policy; cost-benefit analysis of environmental policy and management.
Theory of production and production sets; production function, cost function; input-output relations and production functions; joints products and production externalities; dual approaches to study of technology; empirical models of production, measurement of productivity growth, flexibility of production processes and technological change; alternative approaches to the measurement of technical and economic efficiency in production. Computable general equable and natural resources, natural resource accounting.
Framework for analysis of linkage between choice coordinating institutions and performance of the economy. Market with alternative property and conduct rules to government enterprises and commands, role of formal and informal institutions. Institutional theory: economics beyond the market, cost and political economy; cost as a function of institutions.
Demand as a function of income distribution. Overcoming market failure; the Coasian Paradigm. Domain of institutional analysis; the political economy of decentralization, corruption and decentralization, behavioral economics, rationality of self and others in an economics. Prisoners dilemma. Human choice under alternative rules, the evolution of cooperation and outcomes. Uncertainty and information processing cost.
Institutional change. An evolutionary approach to law and economics.
What is the best institution? Exit, voice and loyalty. Performance of alternative institutions i.e. technology institutions, political and economic institutions and their role.
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Welfare Economics: Society’s Economic Problem, Three Condition for
Efficiency and Social Justice and the Social optimum, Capitalism, Market failure and Alternative Economic System, Criteria for a Welfare
Improvement, The Social Welfare function and the Equity-Efficiency
Trade-off, General Equilibrium: Consumption without Production [Pure
Exchange], Production without Consumption: One Sector Model
Production, without consumption: Two Sector Model Production and
Consumption , Application in Public Finance: Three General Principles, A general tax, and a Tax on One factor, A Tax on One Product [An Excise
Tax], Tax on One Factor in One Industry, Factor Taxes with Variable
Factor Supplies, Applications in International Trade: One Country’s Gain
From Trade: World Prices Constant, The Effect of a Tariff: World Prices
Constant, The Determination of World Prices, The Optimum Tariff: World
Prices Variable.
Books Recommended
1.
Lyard and Walter, Microeconomic Analysis, Latest eds.
2.
Walter Nicholson [1998], Microeconomics Theory: Basic Principles and Extension, 7 th
Ed. New York, The Dryden Press.
The present era of human history is accompanied with the development of global links of different economies and societies. These links can be ascertained through the integration of international markets for labor, capital, technology, etc. The global integration influence different spheres of integrated economies. The dynamics of globalization can particularly change the socioeconomic situation in the countries of so-called Third
World. The integration of local markets in global production can lead to improvement in production and employment and increase the level of national income. However, the inequality generated in consequence of globalization may increase vulnerability of crises for national economies.
There may arise different conflicts between economic agents that can endanger the economic stability of national economies and international production. This situation requires a country-wise analysis of globalization.
The analysis should primarily consider the cultural aspects of these countries, possibilities of integrating local markets in global production, potential for expansion in production and foreign trade as well as magnitude of poverty and migration.
The objective of this course is to examine the importance of globalization for the countries of so-called Third World, to identify the problems of globalization and to work out perspectives in order to solve these problems.
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The course may include following aspects of international economic relations:
•
Conception,
•
Actors
• globalization and their interaction
Multinational
•
International (WTO, World Bank, IMF, etc.)
•
Governance and globalization
•
Pressure groups and global environmental concerns
•
Global development in trade, finance, production, income and employment
Recommended Books:
1. Amin, S., Obsolescent Capitalism, Zed Books, New York, 2003.
2. Baker, D., Globalisation and progressive economic policy,
Cambridge, 1998.
3. Cline, W., Trade and Income Distribution, IIC, Washington, 1997.
4. Kofman, E., Globalization : theory and practice, London, 1996.
6. Mittelman, J., The Globalization Syndrome Transformation and
Resistance, Latest eds.).
7. Morani, T., Political Economy of Foreign Direct Investment, 1985.
9. Thomas, C., Globalization and the South, Macmillan, Basingstoke,
1997.
10. UNO, World Investment Report, 1999-2002.
11. World Bank, World Development Report, Washington 2000-2004.
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1. The National Committee for revision of Curriculum (NCRC) unanimously recommend the implementation of BS Honors and MS
Honors. Programs across the country.
2. It was strongly recommended by the Committee that the HEC should arrange refresher courses for the teachers of Economics, especially in the fields of Econometrics, Statistics, Research
Methodology, Mathematics for Economists, Environmental
Economics, Computer Application, Advanced Microeconomics,
Advanced Macroeconomics, Major Issues in Pakistan Economy,
Teaching Methods and/or any other area on the request; for both at universities and colleges. Competent experts in the area(s) must be arranged to conduct these training courses. Such a training must be result orientated , rather a routine exercise.
3. The students of BS Hons. and MS Hons. may be required to visit industrial sites, Rural Development Projects, institutions related to
Economic research like Planning Commission, Finance Division,
PIDE, PARC, State Bank of Pakistan etc. The HEC may like to finance such study tours/visits; since these activities are essential part of new curriculum. Besides, internships may also may encouraged for practical training.
4. The new curriculum requires additional research efforts, therefore adequate remuneration may be introduced for the supervisors and examiners of research activities like research papers, reports, research projects and theses.
5. Each department should organize at least two annual seminars/workshop and extension lectures on contemporary economic issues. These activities are made mandatory for the staff and students. The HEC should finance such seminar activities.
6. In the revised curriculum, an attempt has been made to keep at par with foreign universities’ course material. Courses like Statistics,
Econometrics, Mathematical Economics, Research Methodology and Research Report Writing warrants immediate access to computer use. It is therefore recommended that HEC should provide computers along with accessories to each department of economics of universities.
7. Recognizing the fact of shortage of competent faculty in Economics all over the country, it is recommended that attractive salary packages should be offered to all faculty members.
8. A multiple salary structure of faculty members all over the country has created huge confusion and uneasiness among the faculty
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members. Therefore a uniform salary package for teachers with equal qualifications and experience may be introduced.
9. The present curriculum could only be implemented if competent faculty members are available, needed infrastructure and library facility are provided. Deficiencies pertaining to the above, need to be immediately addressed. Refresher/Training courses need to be arranged and trainers must be of good quality.
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