ECONOMICS CSS SYLLABUS (200 MARKS)

Paper-I (100 Marks)

I. Microeconomics

• Consumer Behaviour:
  • Determination of market demand and supply.
  • Concept of elasticity of demand and supply.
• Static and Comparative Static Analysis:
  • Distinction between partial and general equilibrium analysis (basic level).
• Theory of the Firm:
  • Producer’s equilibrium.
  • Pricing of the factors of production.

II. Macroeconomics

• Basic Economic Concepts.
• National Income Accounting.
• Consumption Function.
• Multiplier and Accelerator Effects.
• Components of Aggregate Demand.
• Labour Demand and Supply.
• Unemployment.
• Determination of Equilibrium Level of Income and Output:
  • Reference to at least two or three schools of thought.
• Inflation.

III. Money and Banking

• Functions of Money.
• Quantity Theory of Money:
  • The Fisher and Cambridge formulations.
• Systems of Note Issue.
• Credit Creation.
• Functions of Central Banks.
• Instruments of Credit Control:
  • Goals, operational, and intermediate targets of central bank policy.
• Concept of Reserves and Liquidity Premium.
• Term Structure of Interest Rates.
• Transmission Mechanisms of Monetary Policy.
• Theory of Liquidity Preference.
• Time Value of Money (TVM).
• Capital Structure and Restructuring.
• IS-LM Analysis.
• Role of the Central Bank.
• Money Demand and Supply.

IV. Public Financing

• Government Expenditure.
• Sources of Government Revenue:
  • Taxes and non-taxes.
  • Incidence of different taxes.
• Public Debt:
  • Objectives and methods of repayment.
• Deficit Financing.
• General Equilibrium Analysis.
• Welfare Economics.
• Fiscal Policy.

V. International Trade

• Theories of Comparative Advantage and Factor Endowments.
• Trade and Growth.
• Colonialism, Imperialism, and International Trade.
• Trade Restrictions.
• Economic Integration.
• Trade Policy.
• Balance of Payments.
• Foreign Exchange.
• International Monetary System.
• Custom Unions.

VI. Economic Development

• Concepts of Development:
  • Human development.
• Historical Growth Process and Development.
• Theories of Development.
• Structural Issues of Development.
• Income Distribution and Poverty.
• Sectoral Issues and Development:
  • Agricultural, industry, trade, and finance.
• Environment and Development.

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Paper-II (100 Marks) — Economics of Pakistan

I. Definition and Measurement of Development

• Characteristics of underdevelopment.
• Rethinking the concept of development:
  • Growth vs. Redistributive justice.
  • Absolute and relative poverty.
  • Basic needs approach.
  • Sustainable development.
  • Environmental degradation and other issues.

II. Planning Experience of Pakistan

• Critical evaluation of the strategy of economic planning.
• Governance and institutions.

III. Agricultural Development in Pakistan

• Changes in agricultural policies over plan periods.
• Major monetary and fiscal measures to promote agricultural development.
• Green Revolution strategy and its implications for growth and redistribution.
• Land reforms and changes in the tenure system (1950–1980).
• Cooperative farming.
• Rural development.

IV. Industrial Development in Pakistan

• Early industrialization strategy.
• Creation of financial and development institutions.
• Major monetary and fiscal measures to promote industrial development.
• Changing role of the public sector over plan periods.
• Evaluation of nationalization policy.
• Concentration of industrial income and wealth.
• Evaluation of import substitution policy.
• Export-led growth strategy in Pakistan.

V. Role of Foreign Trade and Aid in Economic Development

• Trends in Pakistan’s balance of payments.
• Terms of trade.
• Changes in the direction of trade.
• Trends in Pakistan’s major exports and imports.
• Causes of significant changes in trends.
• Role of migration and remittances in Pakistan’s economy.
• Costs and benefits of foreign aid.
• Role of foreign investment.

VI. Privatization, Denationalization, and Deregulation

• Conceptual and operational aspects.
• International comparisons.
• Pakistan’s experience of privatization.

VII. Interest-Free Banking in Pakistan

VIII. Energy Policy of Pakistan

IX. Social Sector Development in Pakistan

X. Major Issues in Pakistan’s Economy

• Energy crisis.
• Corruption.
• Bad governance.
• External debt accumulation and dependency.
• Unemployment.
• Income inequality.
• Inflation.
• Fiscal and trade deficits.
• Balance of payment issues.
• Shortage of irrigation water.