Impact of Denoised Inflation on Economic Growth of Pakistan
DOI:
https://doi.org/10.63056/ACAD.004.03.0405Keywords:
Economic Growth, Inflation , Oil Prices, Imports, Exchange Rate, ARDL Model, PakistanAbstract
Denoised inflation provides a clearer measure of persistent price trends, offering valuable insights into its true impact on economic growth, which is vital for informed and effective macroeconomic policymaking. Therefore, this study analyzes the effect of denoised inflation on the economic growth of Pakistan using quarterly time series data from 1994 to 2021. For data estimation, the ARDL model and the ADF test are used. The long-run estimates of ARDL show that the variables oil prices, denoised inflation, exchange rate, and government borrowing negatively and significantly influenced the economic growth, while the variable import growth positively and significantly influenced the economic growth of Pakistan. The study concludes that denoised inflation has a significant negative impact on Pakistan’s economic growth. This highlights the importance of addressing persistent inflationary pressures through effective monetary policies and structural reforms aimed at ensuring macroeconomic stability, enhancing investor confidence, and supporting sustainable long-term economic development in the country.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Serish Aslam, Dr. Javed Iqbal, Muhammad Muzammil Asghar, Waqas Younis (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.