[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/aib/ibtjbs/v14y2018i2p209-220.html
   My bibliography  Save this article

Multi-Dimensional Effect Of Oil Pricing On Pakistan Economy: A Case Of Study 1

Author

Listed:
  • Qamar Ul Arafeen

    (LMAUniversity, Karachi, Pakistan)

  • S.M Ahsan Rizvi

    (Associate Professor, Management Science Department, Bahira University, Karachi, Pakistan,)

  • Muhammad Imran Hanif

    (Institute of banking & finance, Bahauddin Zakria University, Multan, Pakistan)

  • Syed Nayyar Al

    (General Studies Department, Yanbu Industrial College, Madinat, Saudi Arabia)

Abstract
Pakistan economy is growing steadily.This growth demands higher energy consumption and consequently putting high pressure on countries economy.Pakistan mainly depends upon oil and gas resources to fulfill energy requirements.Indigenous resources of Oil are not enough to quench energy thirst of the growing economy.As a result Pakistan has to import large quantity of oil and oil based products from Middle East countries.Gas reserves in the country are enough for current gas requirements.So natural gas is playing a key role in power sector.Currently in oil upstream and doswnstream sector there are some local and international companies involved and government of Pakistan is establishing such policies that it can attract more international investors in this sector but the rapid pace of change, high degree of uncertainty and unstable political situation of the country present significant challenges and risk to foreign investment.The paper is a review of possible consequences and challenges presented by high oil prices in Pakistan.Pakistan is heavily dependent on imported fuels and this dependence is expected to increase even further in future given the depleting gas resources.The rising oil prices in the international market has had affected negatively balance of payment position as well as on the budgetary position of the country and contributed in creating inflationary pressures in the economy.For long run development oil will remain an important source of energy.The government should chalk out strategies for ensuring efficiency in use and development, adequacy and reliability of supply and the pricing of petroleum products in such a way that will not create extra burden on the consumers.Unless appropriate steps are taken this trend of rising oil prices will further aggravate the negative impacts on the economy.

Suggested Citation

  • Qamar Ul Arafeen & S.M Ahsan Rizvi & Muhammad Imran Hanif & Syed Nayyar Al, 2018. "Multi-Dimensional Effect Of Oil Pricing On Pakistan Economy: A Case Of Study 1," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(2), pages 209-220.
    • Handle: RePEc:aib:ibtjbs:v:14:y:2018:i:2:p:209-220
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2018.142.17
    as

    Download full text from publisher

    File URL: http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/14.2/17.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.46745/ilma.ibtjbs.2018.142.17?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mehdi Abid & Maamar Sebri, 2012. "Energy Consumption-Economic Growth Nexus: Does the Level of Aggregation Matter?," International Journal of Energy Economics and Policy, Econjournals, vol. 2(2), pages 55-62.
    2. Gisser, Micha & Goodwin, Thomas H, 1986. "Crude Oil and the Macroeconomy: Tests of Some Popular Notions: A Note," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(1), pages 95-103, February.
    3. Lardic, Sandrine & Mignon, Valérie, 2008. "Oil prices and economic activity: An asymmetric cointegration approach," Energy Economics, Elsevier, vol. 30(3), pages 847-855, May.
    4. Levent, Korap, 2007. "Testing causal relationships between energy consumption, real income and prices: evidence from Turkey," MPRA Paper 21834, University Library of Munich, Germany.
    5. Prachowny,Martin F. J., 1986. "Money in the Macroeconomy," Cambridge Books, Cambridge University Press, number 9780521315944, September.
    6. Cologni, Alessandro & Manera, Matteo, 2008. "Oil prices, inflation and interest rates in a structural cointegrated VAR model for the G-7 countries," Energy Economics, Elsevier, vol. 30(3), pages 856-888, May.
    7. Abeysinghe, Tilak, 2001. "Estimation of direct and indirect impact of oil price on growth," Economics Letters, Elsevier, vol. 73(2), pages 147-153, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qamar Ul Arafeen & S.M Ahsan Rizvi & Muhammad Imran Hanif & Syed Nayyar Al, 2018. "Multi-Dimensional Effect Of Oil Pricing On Pakistan Economy: A Case Of Study 1," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(1), pages 14-17.
    2. Nicholas Apergis & Alper Aslan & Goodness C. Aye & Rangan Gupta, 2014. "The Asymmetric Effect of Oil Price on Growth across US States," Working Papers 201459, University of Pretoria, Department of Economics.
    3. Shigeki Ono, 2011. "Oil Price Shocks and Stock Markets in BRICs," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(1), pages 29-45, June.
    4. Muhammad Arshad Khan & Ayaz Ahmed, 2011. "Macroeconomic Effects of Global Food and Oil Price Shocks to the Pakistan Economy: A Structural Vector Autoregressive (SVAR) Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 50(4), pages 491-511.
    5. Sukcharoen, Kunlapath & Zohrabyan, Tatevik & Leatham, David & Wu, Ximing, 2014. "Interdependence of oil prices and stock market indices: A copula approach," Energy Economics, Elsevier, vol. 44(C), pages 331-339.
    6. Ahmed, Khalid & Bhutto, Niaz Ahmed & Kalhoro, Muhammad Ramzan, 2019. "Decomposing the links between oil price shocks and macroeconomic indicators: Evidence from SAARC region," Resources Policy, Elsevier, vol. 61(C), pages 423-432.
    7. Liu, Donghui & Meng, Lingjie & Wang, Yudong, 2020. "Oil price shocks and Chinese economy revisited: New evidence from SVAR model with sign restrictions," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 20-32.
    8. Jorge Blazquez & Jose Maria Martin-Moreno & Rafaela Perez & Jesus Ruiz, 2017. "Fossil Fuel Price Shocks and CO2 Emissions: The Case of Spain," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
    9. Heidorn, Thomas & Van Huellen, Sophie & Ruehl, C. & Woebbeking, F., 2017. "The long- and short-run impact of oil price changes on major global economies," Frankfurt School - Working Paper Series 225, Frankfurt School of Finance and Management.
    10. Fayyad, Abdallah & Daly, Kevin, 2011. "The impact of oil price shocks on stock market returns: Comparing GCC countries with the UK and USA," Emerging Markets Review, Elsevier, vol. 12(1), pages 61-78, March.
    11. Evangelia Papapetrou, 2013. "Oil prices and economic activity in Greece," Economic Change and Restructuring, Springer, vol. 46(4), pages 385-397, November.
    12. Filis, George & Degiannakis, Stavros & Floros, Christos, 2011. "Dynamic correlation between stock market and oil prices: The case of oil-importing and oil-exporting countries," International Review of Financial Analysis, Elsevier, vol. 20(3), pages 152-164, June.
    13. Shaeri, Komeil & Adaoglu, Cahit & Katircioglu, Salih T., 2016. "Oil price risk exposure: A comparison of financial and non-financial subsectors," Energy, Elsevier, vol. 109(C), pages 712-723.
    14. Thai-Ha LE & Youngho CHANG, 2011. "Dynamics Between Strategic Commodities and Financial Variables," Economic Growth Centre Working Paper Series 1104, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    15. Jaime Casassus & Freddy Higuera, 2011. "Stock Return Predictability and Oil Prices," Documentos de Trabajo 406, Instituto de Economia. Pontificia Universidad Católica de Chile..
    16. George Filis & Ioannis Chatziantoniou, 2014. "Financial and monetary policy responses to oil price shocks: evidence from oil-importing and oil-exporting countries," Review of Quantitative Finance and Accounting, Springer, vol. 42(4), pages 709-729, May.
    17. Herath, Nisal, 2014. "Impact of Oil Price Shocks on the Sri Lankan Economy: A Vector Auto Regression Assessment," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 16, pages 1-33, November.
    18. Ozdemir, Zeynel Abidin & Gokmenoglu, Korhan & Ekinci, Cagdas, 2013. "Persistence in crude oil spot and futures prices," Energy, Elsevier, vol. 59(C), pages 29-37.
    19. Lang, Korbinian & Auer, Benjamin R., 2020. "The economic and financial properties of crude oil: A review," The North American Journal of Economics and Finance, Elsevier, vol. 52(C).
    20. Mohammad Reza Farzanegan, 2012. "Does the Iranian oil supply matter for the oil prices?," MAGKS Papers on Economics 201232, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aib:ibtjbs:v:14:y:2018:i:2:p:209-220. See general information about how to correct material in RePEc.

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

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

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

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Syed Kashif Rafi (email available below). General contact details of provider: https://edirc.repec.org/data/fmilmpk.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.