Impact of real and nominal factors on long run equilibrium in Real Effective Exchange Rate (REER) in Pakistan

In this paper, we focused on the hypothesis that nominal shocks such as monetary policy have only temporary impact on long run equilibrium real exchange rate and the consequent misalignment. To do so we utilized two approaches to tackle this issue. The first approach to find out long run real exchange rate is through investigation a long run relation between real exchange rate and its theoretical determinants. The variables that have a long run relationship with the real exchange rate include the terms of trade, real interest rate differential, government spending, and tradable to nontradable ratio. We found that monetary shocks have little impact in long run. Second approach used was the structural vector autoregression by imposing long run restrictions in line with the Blanchard and Quah (1989). Again, this approach has confirmed above results that only real shocks have lasting effects on long run real exchange rate. Nominal shocks only influence the equilibrium exchange rate temporarily in short run. The consequent misalignments measured through two approaches are then compared and policy implications are drawn. Although moving in the similar direction, there magnitudes are different. One important implication for this result is that policy makers’ reliance on any one measure of to judge misalignment would be give inaccurate results.REER, NEER, misalignment, equilibrium, Pakistan

Central bank intervention, sterilization and monetary independence: the case of Pakistan

This paper analyzes the response of the State bank of Pakistan—the central bank, to foreign exchange inflows for the period of 2001:1 to 2006:8. In this context, we estimated sterilization and offset coefficients using vector autoregression (VAR) model to account for the issue of endogeneity of domestic credit with the foreign exchange interventions. In addition, the paper also analyzes the role of foreign and domestic interest rate differentials in pulling in or pushing out of these foreign exchange flows. We found that the offset coefficient is very small and insignificant (0.16) implying that changes in credit resulted in very minimal offsetting reserve flows. The study found out that for the sample period, SBP only partially sterilized the inflows with magnitude of coefficient at (0.50) confirming the stylized facts. Results also indicate that inflows were neither pulled into the country due to high domestic interest rates due to some domestic policy nor they are pushed into Pakistan owing to low interest rates abroad.Sterilization; Monetary independence; VAR

Forward rate unbiased hypothesis, risk premium and exchange rate expectations: estimates on Pakistan Rupee-US Dollar

In this paper, forward market unbiasedness hypothesis (FRUH) is tested and its underline assumptions of rationally formed expectations and non existence of time varying risk premium is examined empirically in case of Rupee/US$. Taking in to account the non-stationarity of the spot and forward rates series, we tested this hypothesis by two approaches. First approach relates the changes in spot rates to the forward premium. The results overwhelmingly reject the hypothesis of forward rate unbiasedness hypothesis. In fact, the estimate is significantly negative and away from 1. This confirms the existence of forward discount anomaly or forward discount puzzle for 1-month forward market. Following the recent literature, we also tested forward rate unbiasedness hypothesis using the tests of cointegration. The result suggests the presence of the cointegration relation between spot and forward rates. However, it fails the restriction that this relation is (1,-1). This therefore implies that cointegration test too fail to accept the forward rate unbiasedness hypothesis. We also found that forward rate unbiased hypothesis fails due to fact that market’s expectation regarding exchange rate movements were not rational and also due to presence of time varying risk premium.FRUH, Exchange rate, Expectations

Molecular Bio-imprinting of Biocatalysts

Energy conservation is the cry of the day. Attempts are made all over the world to occupy and use energy reserves. Increased industrialization and mechanization has led to the depletion of natural energy reserves. Its unavoidable to search for renewable sources of energy, which may be not used now but can be used by future generations. We are using the expertise of our ancestors. Thus exploiting the nature and newer techniques in this area would yield the best results. Bio-imprinting is one of those techniques whereby chemical modification is done in order to achieve highly expressed protein which can be stored in its highly active form in the specific solvent

Different Approaches For Protein Engineering In Industrial Biotechnology

Protein engineering is the novel field which has wide applications from pharmaceutics, industry, commercial, laundry and research. It may apply rational design or non rational design or both. Site directed mutagenesis is a classical approach involving the protein folding principles and as such different techniques involving multidisciplinary research and broad knowledge is required involving biocomputing of complex data obtained from various sequencing projects and prediction of the future protein structure either chemically or genetically modified. Non rational mutagenesis or directed evolution involves random mutations in the gene encoding protein or shuffling the genes encoding different domains producing a random set of numerous large libraries of mutant proteins, using advanced technology the desired protein can be selected but the exact structure or changes may remain unnoticed

The monetary transmission mechanism in Pakistan: a sectoral analysis

The present paper takes a first step in investigating the monetary transmission mechanism in Pakistan at a sectoral level. Using quarterly data spanning from 1973:1 to 2003:4, we examine whether monetary policy shocks have different sectoral effects. Taking note of structural transformation of the economy and the monetary and financial reforms during 1990s, we also assess whether the reform process has notable impact on the monetary transmission mechanism. We find evidence supporting sector-specific variation in the real effects of monetary policy. Our results also suggest significant changes in the transmission of monetary shock to real sector of the economy during post-reform period.Monetary transmission mechanism; VAR; Pakistan; Sectoral analysis

Consumer behavior towards adoption of E-commerce in Pakistan

Though many companies are still just beginning to grasp the potential uses and impacts of the Web and e-commerce, advances in technologies and their application continue. Extensive usage of mobile applications supported by smartphones has changed the ecommerce world and customer behavior has totally changed compared to a decade ago regarding online shopping. This study has been done specifically to Pakistani market and the focus of this study is to investigate the factors that satisfies or dissatisfies the end-users who are relatively new to eCommerce. The study attempted to explain which factors generated satisfaction and dissatisfaction in target country’s ecommerce sector. Data has been collected by open ended surveys and been analyzed to identify the number of factors critical to satisfaction and dissatisfaction in the context of target market’ ecommerce. Different factors were identified as sources for satisfaction and dissatisfaction and were then categorized on a generic base. The study concludes that the mindset of the end-users in context to online shopping is still in its infancy. Several factors have been found which proved to be the critical success towards accelerating consumer adoption towards ecommerce including lower prices, improved security, improved devices and effective customer support. It was also observed that the customization of the marketing mix to the specific characteristics of each target market is a key success factor for eCommerce in Pakistan.

In vitro Evolution and Engineering for Improved Ribozyme Polymerase Production

According to the "RNA World Hypothesis" the first self replicating molecule formed from the prebiotic chemicals is the ribozyme. A model compartmentalized self replicating system for ribozyme polymerases is designed and used to improve activity, fidelity and generality of the enzyme