Role of Regulators in Economic Wellbeing: Empirical Evidence from Pakistan

This Policy Brief examines the role of regulators in the economic well-being of Pakistan. It highlights that discussions in Pakistan often advocate for more regulations. However, these arguments lack clear empirical evidence. This Brief investigates whether regulations improve economic well-being in Pakistan or contribute to its decline.
Based on a Multiple Regression Model, the findings of this Brief depict that positioning Pakistan on a new economic trajectory of better economic well-being requires addressing numerous regulatory distortions as well as enhancing its quality. The existing regulatory environment has constrained competition and reduced incentives for innovation, leading to adverse effects of regulatory activities in the Pakistan economy.