Measuring the Financial Liberalization Index for Pakistan

This paper aims to construct a bi-directional, financial liberalization index for Pakistan by considering various policy indicators (reforms). study, employing the principal component analysis method over period of 1980–2018 (39 years), determine composite outcome in case developing index. study uses 14 investigate degree specified time period. The present suggests real-time change implementation process. formulated revealed that recorded profitability reforms was consistently high until 1998. Meanwhile, from 1997 2003, outcomes were surprisingly strong. Beyond 2004 and rest remaining years 2018, process comparatively slow. Thus, it witnessed all key indicators, sense regulation liberalization, included determining liberalization. consistency track is major focus attention makers, order capture efficiency which implemented beyond 2004. Furthermore, corporate risk terms better access finance also raised as consequence Financial resulted decrease cost capital improved governance.