Paper: Economics (200 Marks)
Paper-I (100 Marks)
I. Micro Economics
Consumer behaviour, Determination of market demand and supply i.e. concept of elasticity of Demand
& Supply, Static, Comparative Static Analysis, Distinction between partial and general equilibrium
analysis (basic level), theory of the Firm, Producer’s equilibrium, Pricing of the factors of production
II. Macro Economics
Basic Economic Concepts, National Income Accounting, Consumption Function, Multiplier,
Accelerator, Component of Aggregate Demand, Labour Demand and Supply, Un-Employment,
Determination of equilibrium level of income and output (at least with reference to two or three “schools
of thought”), Inflation.
III. Money and Banking
Functions of Money, Quantity Theory of Money, The Fisher and Cambridge Formulations, Systems of
note issue, Credit Creation, Functions of Central Banks, Instruments of Credit Control, Distinction
between Goals, Operational & Intermediate Target of Central Banks Policy, Concept of Reserves,
Liquidity Premium, Term Structure of Interest Rate, etc; Transmission Mechanisms of Monetary Policy,
Theory of Liquidity Preference. TVM, Capital Structure, Capital Restructuring, IS-LM Analysis and The
role of Central Bank, Money Demand and Supply.
IV. Public Financing
Government expenditure, Sources of Government Revenue, Privatization, Taxes and non- taxes, Incidence
of different taxes, Public Debt, Objectives, methods of repayment,Deficit financing, General Equilibrium
Analysis, Welfare Economics, Fiscal Policy.
V. International Trade
Theories of comparative advantage and Factor Endowments, Trade & Growth, Colonialism,
Imperialism and International Trade, Trade Restrictions, EconomicIntegration, Trade Policy, Balance
of Payments, Foreign Exchange, International Monetary system, Custom Unions.
VI. Economic Development
Concepts of development, Human development, Historical growth process and Development, Theories
of development, structural issues of development, Income distribution and poverty, sectoral
(agricultural, Industry, trade and fiancé) issues and development, environment and development.
Paper-II (100 Marks)
(Economics of Pakistan)
I. Definition and Measurement of Development: Characteristics of under development,
rethinking on the concept of development: Growth vs. Redistributive justice, Absolute and Relative
Poverty, Basic Needs Approach, Sustainable Development, Environmental Degradation & other Issues.
II. Planning Experience of Pakistan: A critical evaluation of the strategy of economic planning,
governance & Institutions.
III. Agricultural Development in Pakistan: Changes in Agricultural Policies over plan periods, Major
Monetary and Fiscal measures to promote Agricultural development, Green Revolution Strategy and
its implications for growth and redistribution, Land Reforms and changes in the Tenure System 1950—
1980, Cooperative Farming, Rural Development.
IV. Industrial Development in Pakistan: Early industrialization strategy, Creation of Financial
and Development Institutions, Major monetary and fiscal measures to promote industrial development,
changing role of public sector over the planperiods, Evaluation of Nationalization Policy, Concentration
of industrial income and wealth, Evaluation of Import Substitution Policy and Export led Growth
Strategy in Pakistan.
V. Role of Foreign Trade and Aid in Economic Development: Trends in Pakistan’s Balance of
Payments, Terms of Trade, Changes in direction of trade, Trends in Pakistan’smajor exports and
imports, Causes of significant changes in the trends, the role of migration and remittances in Pakistan’s
economy, costs and benefits of Foreign Aid, Roleof Foreign Investment.
VI. Privatization, Denationalization, Deregulation: conceptual and operational aspects.
International comparisons. Pakistan Experience of Privatization.
VII. Interest Free Banking in Pakistan
VIII. Energy Policy of Pakistan
IX. Social Sector Development in Pakistan
X. Major Issues in Pakistan Economy: Energy crisis, Corruption, Bad governance,External debt
accumulation and dependency, Unemployment, Income inequality, Inflation, Fiscal and trade deficits,
Balance of payment issues, Shortage of irrigation water.