Journal of Development Policy, Research & Practice Journal of Development Policy, Research & Practice (JoDPRP) Sustainable Development Policy Institute (SDPI), Islamabad, Pakistan en-US Journal of Development Policy, Research & Practice 2522-3410 An Overview of Microfinance Institutions and Related Developments in Pakistan <p><em>This research work is an attempt to assess the current state of microfinance in Pakistan with a view to collaboratively finding strategic and bespoke solutions to increasing the financial inclusion footprint in the country. Key Informant Interviews (KIIs) have been held with stakeholders across a wide spectrum comprising investors, development agencies, practitioners, apex bodies, credit bureau and regulators so that a candid and consensual approach may emerge with solutions that are practical and implementable. It was pointed out by stakeholders that Pakistan’s financial institutions are well established, and the legislative framework and regulatory structure have nimbly evolved to create sufficient infrastructure for growth across the board. However, there is lack of partnerships among Microfinance Banks and Non-Banks Microfinance Companies. Going forward, financial institutions should focus on digital financial services to expand their network. </em></p> <p><strong>JEL Classification Codes:</strong> G21</p> <p> </p> Asif Javed Faeyza Khan Copyright (c) 2023 Asif Javed, Faeyza Khan 2024-02-12 2024-02-12 7 1 1 30 Does Capital and Funding Liquidity Risk Affect Risk-Taking and Monetary Policy? <p><em>This paper examines how bank capital and funding liquidity risk influence the interplay between monetary policy and risk-taking among banks in the South Asian Association for Regional Cooperation (SAARC) region. The Generalized Method of Moments (GMM) model was employed to analyse panel data from 2009-18. The empirical findings indicate that the interest rate negatively affects bank risk-taking. Diverging from previous literature, this study provides evidence that bank capital and funding liquidity risk moderate the relationship between monetary policy and bank risk-taking. This is evident from the significant coefficients of both interaction terms. Banks with low capital and high funding liquidity risk exhibit increased sensitivity to interest rate changes, leading to greater variations in risk-taking behaviours. Consequently, it is advisable for regulators and policymakers to closely monitor liquidity and minimum capital requirement ratios, particularly for banks with lower levels of deposits and capitalisation. Furthermore, this study contributes to the literature by providing evidence that risk-taking is influenced by both bank capital and funding liquidity risk.</em></p> <p><em><strong>JEL Classification Codes:</strong></em> E52, D81, G21</p> Sidra Gazali Shumaila Zeb Akmal Shahzad Anum Shafique Copyright (c) 2024 Sidra Gazali, Shumaila Zeb, Akmal Shahzad, Anum Shafique 2024-01-18 2024-01-18 7 1 31 47 A Novel Corruption Index <p><em>Corruption is a qualitative variable that cannot be calculated directly. There are different approaches and techniques used for estimating corruption levels precisely. However, many new indices have been introduced to measure corruption levels, especially in the last decade. Researchers have used perception or experience indicators, simple data sources or multiple data sources, and proxy measures to estimate corruption in the past. All measures have limitations and drawbacks. The prevalent use of perception matrices to gauge corruption, derived from primary surveys of institutions and experts, presents challenges for cross-country comparisons. Such metrics often exhibit bias, particularly within perception indices. Relying solely on either perception or experience indicators is insufficient to estimate corruption levels accurately. This study introduces a novel approach that amalgamates perception and experience indicators to measure corruption in countries, specifically focusing on Pakistan. This combined index is compared to traditional perception-based indices using a weighted aggregative methodology. The ‘Novel Corruption Index’ portrays a clearer picture of corruption than other averaged perception indices for formulating effective anti-corruption policies by the government, especially tailored for Pakistan.</em></p> <p><strong>JEL Classification Codes:</strong> D73, F35</p> <p> </p> Khurrum Shahzad Sultan Ahmad Rana Anum Javaid Copyright (c) 2024 Khurrum Shahzad, Sultan Ahmad Rana, Anum Javaid 2024-01-02 2024-01-02 7 1 48 72 Nexus Between Democracy, Corruption, and Income Inequality in South Asia <p><em>This study explores the interplay between corruption, democracy, and income inequality in South Asia, analysing data from 2012 to 2022. It incorporates variables from the Transparency International Corruption Perception Index (TI-CPI), Democracy Index by the Economist Intelligence Unit (EIU), and measures of income inequality, in addition to other control variables relevant to political governance and economic performance. Utilising the Feasible Generalised Least Squares (FGLS) approach, the research reveals that democracy, regulatory quality, income inequality, and population growth are associated with increased corruption, while effective corruption control, rule of law, and economic growth contribute to its reduction in the region. These findings offer valuable insights for policymakers on enhancing democratic structures, governance efficiency, and the rule of law to combat corruption in South Asia.</em></p> <p><em><strong>JEL Classification Codes:</strong> O15, D73</em></p> <p> </p> Rozina Shaheen Muhammad Haroon Amjad Copyright (c) 2024 Rozina Shaheen, Muhammed Haroon Amjad 2024-01-02 2024-01-02 7 1 73 91 10.59926/jodprp.vol07/04 Impact of Organisational Politics Perceptions on Doctoral Students’ Engagement and Performance: Exploring the Mediating Role of Supervisor Support <p><em>The study investigates the possible linkage of organisational politics with the academic performance of doctoral students, mediated by work engagement and moderated by perceived supervisor support, based on the ‘Broaden-and-Build Theory’. The authors collected multisource data through structured questionnaires from 432 doctoral students and their supervisors, which was analysed using the Structural Equation Modeling (SEM) technique in SmartPLS 4. Analysis showed that organisational politics negatively impacts academic performance with the partial mediation of work engagement. However, perceived supervisor support buffered this association, thus, reducing the indirect effects on academic performance. The findings are useful for the management of Higher Education Institutes/Universities (HEIs) into how and why the perception of organisational politics could lead to poor academic performance of students enrolled in doctoral studies. The findings also direct university management to take necessary measures by which students’ academic performance could be enhanced through their work engagement and perceived supervisor support.</em></p> <p><strong><em>JEL Classification Codes: </em></strong><em>I21</em></p> Ume Rubaca Malik Mamoon Munir Copyright (c) 2024 Ume Rubaca, Mamoon Munir 2024-01-02 2024-01-02 7 1 92 121 10.59926/jodprp.vol07/05 Prospective Teachers’ Learning and Practicing Assessment in Teaching Practicum: Comparative Perspective in Pre-Service Teacher Education Programmes <p><em>This study examines the challenges associated with implementing learning-supportive assessment during teaching practicum, while also exploring the roles of University Tutors (UT), Cooperative Teachers (CT), Prospective Teachers (PT), and Heads of Practicum Schools (HPS) in selected universities in Pakistan and the United Kingdom (UK). Using </em><em>the qualitative case study approach, data was collected through lesson observations of UT in pre-service teacher education settings and PT in practicum schools. Additionally, interviews were conducted with UT and HPS, and a Focus Group Discussion (FGD) was held with PT. The study concludes that, in comparison to their UK counterparts, PT in Pakistan encounter significant barriers to implementing learning-supportive assessment in practicum school settings. These barriers include large class sizes, a lack of institutionalised collaboration between universities and schools, inadequate lesson modelling, ineffective feedback practices, assignments that emphasise lower-order thinking skills, and limited opportunities to utilise technology in school settings. Based on the findings, the study recommends the implementation of a new assessment policy that expands examinations beyond mere knowledge recall to include competency assessment. This policy should incorporate adherence to Pakistani teacher standards and the use of reflective portfolios. Moreover, it is advised to provide training for UT and CT in enacting assessment techniques rather than solely providing theoretical knowledge. Additionally, the study proposes the development of problem-solving assignments or projects that require PT to engage in reflection, critical thinking, imagination, and multidimensional contributions.</em></p> <p><em><strong>JEL Classification Code:</strong> I20</em></p> Malik Ghulam Behlol Alison Fox Faiza Massud Sahiba Arshad Copyright (c) 2024 Malik Ghulam Behlol, Alison Fox, Faiza Massud 2024-01-02 2024-01-02 7 1 122 140 10.59926/jodprp.vol07/06 Role of Households’ Wealth and Maternal Education in Early Child Development: A Case Study of Punjab, Pakistan <p><em>Children under the age of five are exposed to several hazards in developing countries, such as poverty, inadequate housing, and unstimulating home environments, which have an adverse influence on their cognitive and socio-emotional development. Since learning during adulthood is influenced by earlier developmental stages, these formative years are crucial in shaping a successful adult life. Therefore, the study intends to investigate what causes some children to perform worse than other children of the same age. It utilises data from the Multiple Indicator Cluster Survey (MICS) 2017-18 of 4,043 children from Punjab, Pakistan. Binary Logistic Regression was used for analysis and it demonstrated a positive relationship between early child development, wealth, maternal education, and home stimulating activities with all three measures of child development which include child identification of alphabets, reading at least four popular words, and recognition of numbers or shapes. The result of the study suggests that it is an urgent need of the hour to focus to women’s education and take steps to mitigate poverty in order to enable parents to provide their children with a better learning environment. </em></p> <p><em><strong>JEL Classification Codes: </strong>I250, H75, P36, J13.</em></p> <p> </p> Hafiz Ghulam Mujaddad Wajeeha Ashraf Muhammad Hassan Danish Copyright (c) 2023 Hafiz Ghulam Mujaddad , Wajeeha Ashraf, Muhammad Hassan Danish 2024-02-12 2024-02-12 7 1 141 164 10.59926/jodprp.vol07/07 Muslims in Britain: History, Diversity, Socio-Economic Status <p><em>This paper examines the growing presence of Muslims in the United Kingdom (UK), a community that, despite being a minority, is expanding rapidly according to data from the Oxford-based Migration Observatory. This research examines the diverse origins, cultures, languages, and religious beliefs of British Muslims, setting the stage to explore the multifaceted emergence of Islam and Muslims in the UK. The study investigates the various phases of Muslim migration, pinpointing the principal reasons for their arrival and the routes chosen by individuals from countries such as Pakistan, India, Afghanistan, Bangladesh, Syria, Somalia, Bosnia, Kosovo, and Yemen to settle in cities like London, Glasgow, Birmingham, Cardiff, Bradford, Liverpool, Hull, and Sheffield. It identifies key factors driving the formation of Muslim communities in the UK, including political instability, ethno-religious conflicts, natural disasters, civil unrest, decolonisation, and labour shortages. Additionally, the paper assesses the socioeconomic status of Muslims in England and concludes with strategic recommendations for policymakers.</em></p> <p><em><strong>JEL Classification:</strong> A14, Z1.</em></p> Shaista Malik Copyright (c) 2023 Shaista Malik 2024-02-12 2024-02-12 7 1 165 180 10.59926/jodprp.vol07/08 Government of the Punjab Policy on Controlling Smog (2017); A Critical Review <p><em>Lahore, the capital of Punjab, Pakistan, has experienced worsening episodes of smog since the early 2000s. Poor air quality in Lahore reduces the life expectancy of its population by roughly seven years and results in 128,000 premature annual deaths. According to various emissions inventories, nitrogen oxides (NOx) and particulate matter (PM) frequently exceed World Health Organization (WHO) standards, more than other air pollutants in the city. In 2017, the Government of the Punjab developed the Policy on Controlling Smog to mitigate the effects of air pollution across Punjab, including Lahore. This paper critically examines the Policy on Controlling Smog. First, it establishes a scientific baseline to describe smog to justify a comparison between Lahore, London, Beijing, and Los Angeles. Second, the paper establishes a positive correlation between poor air quality and negative public health outcomes. Next, the paper gleans lessons from air quality policies developed to overcome smog in the aforementioned cities. Lastly, the paper compares the Policy on Controlling Smog to its counterpart policies in the same cities. The paper argues and concludes that while the Policy on Controlling Smog is a good effort to organize efforts in Punjab, it is not leveraging lessons from other cities nor is it consistent with the latest scientific research on Lahore’s air quality, and therefore, it is ill-equipped to maximise public health outcomes</em>. </p> <p><strong>JEL Classification Codes:</strong> I18</p> Khizr Imran Tajammul Copyright (c) 2024 Khizr I. Tajammul 2024-01-18 2024-01-18 7 1