Regulatory framework  Recognizing the ground realities, Pakistan’s financial regulatory framework at this stage restricts banks from engaging in non-related commercial activities to avoid conflicts of interest between banks and diverse businesses such as securities and insurance underwriting, and real estate investment etc. This is largely done to avoid at this stage the complexities emerging from cross ownership and large conglomerates.
Is the increase in inflation driven by supply- or demand-side dynamics? Different drivers of the inflationary shocks require a different policy response. Contrary to the United States, inflation in the euro area has been mainly driven by the supply side.