Impact of Economic Reforms on Social Sector of Pakistan: An Empirical Analysis


  • Muhammad Shakeel Assistant professor, Department of Economics, Government Islamia College Civil lines Lahore, Pakistan
  • Azmat Hayat Assistant professor, Department of Economics, Punjab University Lahore, Pakistan



Economic Reforms, ARDL, Poverty, Income Inequality


This study evaluates the impact of economic reforms on the social sector of Pakistan by constructing the index of economic reforms of the key sectors of the economy for the period 1971 to 2015 using ARDL. For analysis purpose two separate models have been estimated for poverty and income inequality. The results of the study reveal that economic reforms impact poverty and income inequality negatively and significantly. The negative relationship of economic reforms show that economic reforms are helpful for improving the social sector of Pakistan. Moreover, both the models also show convergence from short run to long run period. The foreign direct investment exerts positive impact on poverty and gross fixed capital has positive impact on both poverty and income inequality. The relationship between population growth and income inequality is positive and significant. Moreover, age dependency ratio and life expectancy reduces both inequality and poverty respectively in the long run. The role of crime appears to be insignificant in case of income inequality. The study suggests that government of Pakistan should formulate and implement pro poor policies and introduce reforms for providing health and educational facilitates. Furthermore, the introduction food subsidy to the poor will also be helpful in reducing the intensity of poverty and inequality in Pakistan.


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How to Cite

Shakeel , M. ., & Hayat, A. . (2020). Impact of Economic Reforms on Social Sector of Pakistan: An Empirical Analysis. Review of Economics and Development Studies, 6(2), 323-337.