Lopez-Calix, JoséTouqeer, Irum2014-04-162014-04-162013-06https://hdl.handle.net/10986/17858This paper revisits the identification of the binding constraints to investment and growth in Pakistan by rigorously applying the growth diagnostic framework. It has a central finding: Pakistan's economy faces two major groups of constraints emerging and structural. The emerging constraints include infrastructure (energy) deficit, high macro-fiscal risks, and inadequate international financing (high country risks and low FDI inflows). The structural binding constraints that persistently affect prospects of sustainable growth in Pakistan are low access to domestic finance, high anti-export bias, bad taxation system, micro risks (bad governance, excess business regulations, and poor civil service) and slow productive diversification.en-USCC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEACCOUNTINGADMINISTRATIVE CAPACITYAVAILABILITY OF CREDITAVAILABILITY OF FINANCEBALANCE OF PAYMENTBALANCE OF PAYMENTSBANK FINANCINGBASIS POINTSBINDING CONSTRAINTBONDBOND INDEXBORROWINGBORROWINGSBUDGETINGCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL FORMATIONCAPITAL INVESTMENTCAPITAL MARKETCAPITAL MARKET REGULATIONSCASH PAYMENTSCENTRAL BANKCOLLATERALCOLLATERAL LAWSCOLLATERAL REQUIREMENTSCOMMERCIAL BANKCOMMERCIAL BANK LENDINGCOMMERCIAL BANK LOANSCOMMERCIAL BANKSCOMPLIANCE COSTCONTRACT ENFORCEMENTCOORDINATION FAILURESCORPORATE DEBTCORRUPTIONCOUNTRY RISKCOUNTRY RISKSCREDIT AVAILABILITYCREDIT CONSTRAINTSCREDIT HISTORIESCREDIT MARKETCREDIT RISKCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDEMAND FOR CREDITDEPOSITDEPOSITSDEVELOPING COUNTRIESDIVERSIFICATIONDOMESTIC CREDITDOMESTIC INTEREST RATESEARNINGSECONOMIC ACTIVITYECONOMIC AGENTSECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC GROWTHEMERGING ECONOMIESEMERGING MARKETSEMPLOYMENT GROWTHENABLING ENVIRONMENTENTREPRENEURIAL ACTIVITYENTREPRENEURSEXCHANGE RATEEXCHANGE RATESEXPENDITUREEXPENDITURESEXPORT COMPETITIVENESSEXPORT GROWTHEXPORT SHAREEXPORT SHARESEXPORTERSFARMERSFINANCIAL CRISISFINANCIAL DEPTHFINANCIAL EXCLUSIONFINANCIAL ILLITERACYFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL NEEDSFINANCIAL OUTREACHFINANCIAL PRODUCTSFINANCIAL SYSTEMFINANCING COSTSFISCAL DEFICITFISCAL DEFICITSFIXED INVESTMENTFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE MARKETFOREIGN FUNDSFOREIGN INVESTMENTFOREIGN INVESTMENTSGENDERGENDER ISSUESGOVERNANCE ISSUESGOVERNMENT BONDSGOVERNMENT REVENUESGOVERNMENT SECURITIESHIGH INTEREST RATESHOLDINGHOUSEHOLDSHUMAN CAPITALHUMAN DEVELOPMENTHUMAN RESOURCESIMPORT COSTSINCOME LEVELINCOME LEVELSINCOME TAXINFLATIONINFORMATION TECHNOLOGYINFORMATIONAL ASYMMETRIESINFRASTRUCTURE INVESTMENTINSURANCEINTEREST RATESINTERNAL FUNDSINTERNATIONAL BANKINTERNATIONAL FINANCEINTERNATIONAL FINANCESINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL INVESTMENTINTERNATIONAL MARKETSINTERNATIONAL STANDARDSINVESTINGINVESTMENT CLIMATEINVESTMENT PROJECTSINVESTMENT RATEINVESTMENT RATESJOB CREATIONLABOR MARKETLABOR MARKETSLAND TITLESLOANLOAN SIZESLOW INTEREST RATESMACROECONOMIC ENVIRONMENTMACROECONOMIC INSTABILITYMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC RISKSMARKET FAILURESMARKET PRICEMARKET STRUCTUREMICROFINANCEMOBILE PHONEMONETARY FUNDMONETARY POLICYMONEY TRANSFERSMONEYLENDERSNATIONAL INVESTMENTNATIONAL SAVINGNATIONAL SAVINGSNATURAL DISASTERSOIL PRICEOPERATING COSTSOPPORTUNITY COSTPERSONAL INCOMEPERSONAL LENDINGPERSONAL SAVINGSPHYSICAL CAPITALPOLITICAL STABILITYPORTFOLIOPORTFOLIO INVESTMENTPREJUDICEPRICE STABILITYPRIVATE ENTERPRISESPRIVATE INVESTMENTPROPERTY RIGHTSPUBLIC DEBTPUBLIC INVESTMENTPUBLIC POLICYPUBLIC SPENDINGPURCHASING POWERPURCHASING POWER PARITYRATE OF RETURNRATE OF RETURNSRATES OF RETURNREAL EXCHANGE RATEREAL INTERESTREAL INTEREST RATESREGULATORY BARRIERSREMITTANCEREMITTANCE SERVICESREMITTANCESRESERVERESERVESRETURNRETURNSRISK OF EXPROPRIATIONRULE OF LAWSAVINGS RATESMALL BUSINESSESSOLVENCYSOVEREIGN BONDSTATE BANKSTRUCTURAL PROBLEMSSUPPLY OF CREDITTAXTAX RATETAX RATESTAX SYSTEMTERMS OF LOANSTRADE LIBERALIZATIONTRADE REGIMETRADINGTRANSACTIONTRANSACTION COSTSTRANSITION ECONOMIESTRANSPARENCYUNEMPLOYMENTWOMEN BORROWERSWOMEN ENTREPRENEURS10.1596/17858