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This study has investigated the connection between peace and performance of Pakistan's export sector. The interstates conflicts, terrorist activities and war elements disturb the industry supply chain, damage the means of transportation, and increase the security measures and regulations, which make trade more expensive. On the other hand, encouragement of the peace process lowers military conflicts, promotes diplomatic cooperation, and hence trade among the nations. The purpose of the study is to test whether domestic peace in Pakistan relative to its trading partners promotes its exports. For empirical analysis, we use panel data for Pakistan and its 26 trading partners in export over the period 2007–2018. After controlling the impacts of economic size, market size, infrastructure, and exchange rate, we found that peace in Pakistan relative to its trading partners is important to promote its export sector, which is directly linked with local industries and the wellbeing of individuals. The economic size and market size of the exporting nations relative to Pakistan also positively contributed towards the exports. The depreciation of Pakistan's exporting countries' currencies relative to its currency lowers the volume of exports. Besides, it is also observed that a major portion of Pakistan's exports is routed in a specific region or few countries. Therefore, it is suggested that the government should take active measures to reduce the internal as well as external conflicts, terrorists' attacks, and war elements to promote the volume of exports. [ABSTRACT FROM AUTHOR]

The role of infrastructure in poverty alleviation remains ambiguous due to weak institutions in developing countries. Considering spatial dependence, this study provides empirical evidence on the role of rural infrastructure in poverty alleviation using district-wise data of Pakistan. Results indicate positive direct as well as spatial spillover effects of financial infrastructure and female education infrastructure while positive direct effects of energy infrastructure are observed. The insignificant role of health and transportation infrastructure in poverty alleviation is a matter of serious concern. From a policy point of view, allocation of sufficient financial resources, improvement of female education infrastructure in rural areas and reformulation of health and transportation policies should be priority steps for poverty alleviation. An adverse effect of male education infrastructure on poverty reduction is detected, which needs further exploration. Adverse spillover effects of water and sanitation infrastructure on poverty may suggest the authorities to revise the implementation procedure of National Sanitation and Drinking Water Policy. The analysis might be relevant to the South Asian region due to homogeneous economic development. Moreover, the study provides evidence informing the debate on balanced regional development in developing countries with a particular focus on high and medium level of poverty clusters. [ABSTRACT FROM AUTHOR]