Cash, Corruption, and Inflation: Short-Run Macroeconomic Effects of Cash Hoarding in Pakistan
Abstract
Pakistan has a constantly high currency share relative to its monetary base, with circulation currencies accounting for more than one-quarter of global currencies(M2). According to recent state bank of Pakistan data, Pakistan's currency circulation rate (CiC/M2) is about 27 to 28 percent of Pakistan's vast currency(M2) and is held as currency in circulation. In August 2025, CiC = 10.8 trillion rupees, M2 = 39.39 trillion rupees CiC/M227.4%. The paper examines Pakistan's short-term macroeconomic impact on cash banks, focusing on the ratio of the circulated currency to the broad currency (CiC/M2), and on the performance of inflation, corruption, interest rates, exchange rates, and tax revenues between 2006 and 2024. These data are secondary data from the State Bank of Pakistan, the Pakistan Statistical Office and international governance indicators. In Pakistan, the short-term links between cash reserves used as indicators of informal economic activity and major national economic measures will be investigated. According to the 2006-2024 annual register, the control is focused on the immediate impact of price increases and not only government tax revenues.References
Alam, Anwer (2008). Community Development and Social Welfare. Peshawar,
Pakistan: New Awan Printers.
Burke, S., Murphy, N., Lanigan, C., & Anderson, L. (2009). An Asset-Based Community Development Approach to Skills-Banking and Capacity-Building in Toberona, Dundalk (Vol. 2009). Combat Poverty Agency.
Chaiklin, H. (2013). The history of social work education and the profession’s structure. Social Welfare History Project.
Fabbris, L. (2007). Competence-based compatibility between jobs and university curricula. In Effectiveness of University Education in Italy: Employability, Competences, Human Capital (pp. 247-259). Heidelberg: Physica-Verlag HD.
Hains, K. D., Hains, B., White, S., Stanard, V., & Rios, M. (2020). Knowledge, values and skills essential for effective community development practice: A Delphi study. Journal of Community Practice, 28(4), 416-429.
Healy, L. M. (2008). International Social Work Professional Action In An
Interdependent World Second Edition. Oxford University Press
Healy, K. (2012). Social work methods and skills: the essential foundations of practice. London: Macmillan International Higher Education.
Khalid, M. (2006). Social Work Theory and Practice. Karachi, Pakistan: Kifayat Academy.
Mellor, M. J., & Ivry, J. (2002). Advancing gerontological social work education (Vol. 39, No. 1-2). Psychology Press.
Michael, F. Y. (1998). The curriculum of the future. In From the ‘new sociology of education” to a critical theory of learning.
Nanavatty, M. C. (1990). Changing pattern of social work education in developing countries with special reference to India–Need for alternate models. Indian journal of social work, 51(2), 309-321.
Nikku, B. R. (2014) Social work education in South Asia: diverse, dynamic and disjointed? Social work education in South Asia. Global social work, 97-112.
Nikku, B. R., & Hatta, Z. A. (Eds.). (2014). Social work education and practice: scholarship and innovations in Asia and Pacific. Brisbane, QLS, Australia: The Primrose
Hall Publishing Group.
Noble, C. (2004). Social work education, training and standards in the Asia–Pacific region. Social work education, 23(5), 527-536.
Ranjha, A. (2013). Working Practices, Problems and Needs of the Community Development Projects in Punjab Province, Pakistan (Doctoral dissertation, University of Dundee).
Rehmatullah S. (2002). Social Welfare in Pakistan. London: Oxford University Press.
Riaz, S., & Granich, S. (2023). Professional development of social work education and practice in Pakistan within a global context. Social Work Education, 42(8), 1402-1417.
Rikhotso, R. H. (2013). The challenges of community development workers in the implementation of the Community Development Workers’ Programme in Makhado Local Municipality, Limpopo Province (Doctoral dissertation, Stellenbosch: Stellenbosch University).
Samta, P. (2016). Understanding Social Theory for Social Work. The Indian Journal of Social Work, 70(3), 353-374.
Shah, N. A. (2018). Social work education in Pakistan: Issues and future opportunities. Pakistan Journal of Applied Social Sciences, 7(1), 1-15.
Shoukat, A., Khalid. A., Jafar, M., Hassan. Nikku, B.R., (2020). Culture and Politics of Federally Administered Tribal Areas of Pakistan: Borderlands and Conflict Areas as Critical Spaces for International Social Work. Journal of the Research Society of Pakistan Volume No. 57, No.1 (January June, 2020).
Stuart, P. H. (2013). Social work profession: History. In Encyclopedia of social work.
Pakistan: New Awan Printers.
Burke, S., Murphy, N., Lanigan, C., & Anderson, L. (2009). An Asset-Based Community Development Approach to Skills-Banking and Capacity-Building in Toberona, Dundalk (Vol. 2009). Combat Poverty Agency.
Chaiklin, H. (2013). The history of social work education and the profession’s structure. Social Welfare History Project.
Fabbris, L. (2007). Competence-based compatibility between jobs and university curricula. In Effectiveness of University Education in Italy: Employability, Competences, Human Capital (pp. 247-259). Heidelberg: Physica-Verlag HD.
Hains, K. D., Hains, B., White, S., Stanard, V., & Rios, M. (2020). Knowledge, values and skills essential for effective community development practice: A Delphi study. Journal of Community Practice, 28(4), 416-429.
Healy, L. M. (2008). International Social Work Professional Action In An
Interdependent World Second Edition. Oxford University Press
Healy, K. (2012). Social work methods and skills: the essential foundations of practice. London: Macmillan International Higher Education.
Khalid, M. (2006). Social Work Theory and Practice. Karachi, Pakistan: Kifayat Academy.
Mellor, M. J., & Ivry, J. (2002). Advancing gerontological social work education (Vol. 39, No. 1-2). Psychology Press.
Michael, F. Y. (1998). The curriculum of the future. In From the ‘new sociology of education” to a critical theory of learning.
Nanavatty, M. C. (1990). Changing pattern of social work education in developing countries with special reference to India–Need for alternate models. Indian journal of social work, 51(2), 309-321.
Nikku, B. R. (2014) Social work education in South Asia: diverse, dynamic and disjointed? Social work education in South Asia. Global social work, 97-112.
Nikku, B. R., & Hatta, Z. A. (Eds.). (2014). Social work education and practice: scholarship and innovations in Asia and Pacific. Brisbane, QLS, Australia: The Primrose
Hall Publishing Group.
Noble, C. (2004). Social work education, training and standards in the Asia–Pacific region. Social work education, 23(5), 527-536.
Ranjha, A. (2013). Working Practices, Problems and Needs of the Community Development Projects in Punjab Province, Pakistan (Doctoral dissertation, University of Dundee).
Rehmatullah S. (2002). Social Welfare in Pakistan. London: Oxford University Press.
Riaz, S., & Granich, S. (2023). Professional development of social work education and practice in Pakistan within a global context. Social Work Education, 42(8), 1402-1417.
Rikhotso, R. H. (2013). The challenges of community development workers in the implementation of the Community Development Workers’ Programme in Makhado Local Municipality, Limpopo Province (Doctoral dissertation, Stellenbosch: Stellenbosch University).
Samta, P. (2016). Understanding Social Theory for Social Work. The Indian Journal of Social Work, 70(3), 353-374.
Shah, N. A. (2018). Social work education in Pakistan: Issues and future opportunities. Pakistan Journal of Applied Social Sciences, 7(1), 1-15.
Shoukat, A., Khalid. A., Jafar, M., Hassan. Nikku, B.R., (2020). Culture and Politics of Federally Administered Tribal Areas of Pakistan: Borderlands and Conflict Areas as Critical Spaces for International Social Work. Journal of the Research Society of Pakistan Volume No. 57, No.1 (January June, 2020).
Stuart, P. H. (2013). Social work profession: History. In Encyclopedia of social work.
Downloads
Published
28-02-2026
How to Cite
Shah, R., & Zaheer, R. (2026). Cash, Corruption, and Inflation: Short-Run Macroeconomic Effects of Cash Hoarding in Pakistan. Progressive Research Journal of Arts & Humanities (PRJAH), 8(1), 128–138. Retrieved from https://prjah.org/index.php/prjah/article/view/481
Issue
Section
Articles
