Pakistani macroeconomic series reveal significant structural breaks impacting inflation rates.
The article examines eleven Pakistani economic trends using annual data. Traditional tests show all variables are not stable at their base levels. A special test by Zivot and Andrews reveals that only CPI and WPI are stable, while the other nine are not. The test also pinpoints the most significant structural break in each series, showing that ten out of eleven series had a break between 1972 and 1976.