Empirical evidence from the past history of Pakistan suggests that there is a direct relationship between rapid economic growth and poverty reduction. After the annual economic growth rate crosses the threshold of 6 percent or more on a sustained basis there is a strong probability that the incidence of poverty will begin to decline.
However, macro-prudential policy is still quite recent and more research, namely on the instruments that can be used and on their potential impact, is still needed. The underlying ‘buffers’ were not built up before (and during) the crisis, additional tools still need to be developed, and more work is still needed to establish a comprehensive macro-prudential toolkit beyond banking, which to date is lacking.