The PIDE Econometric Model of Pakistan’s Economy (1959-60 to 1978-79)

The_PIDE’s Research Programme (1979-82)promised, among other things, to prepare an economy-wide econometric model that would provide a systematic.ana- lytical framework for studying the structure of Pakistan’s· economy and for assessing the relative strengths of the many forces that moulded this structure overtime. This · promise has now been fulfilled, though not entirely. The results ofthis exercise are presented ‘in this report, which, in terms ofwhat still remains to be done, may be treated as interim. While this ambitious undertaking may not exactly be ari act of . “madness”, “yet there is definitely “a method in it”. For those who insist on a method and a methodology in all that is ‘worthy of attention, we may have .created something meriting their admiration. However, our main purpose in carrying out ‘this project has been to help the policy-makers in making those ‘earth-shaking’ decisions that must be based on a quantitative knowledge of the highly complex relations that definethe economic universe.