Measuring Availability of Resources: A Case Study of Selected CPI Items in Pakistan. Vol. 30, Issue 2

Abstract

It is widely believed that resources are becoming scarcer, and measuring their availability is crucial for efficient allocation. This study measures the availability and affordability of essential items in Pakistan before and after COVID-19. Time Price, Price Elasticity of Population (PEP), and Simon Abundance Index (SAI) are calculated to analyze thirty-nine items from Pakistan's CPI basket. The findings reveal that from 2006 to 2018, the Time Price decreased for almost all items, indicating increased affordability and resource abundance relative to population growth. However, the COVID-19 pandemic significantly increased the Time Prices of essential commodities, making them less affordable and less abundant. Policymakers are advised to adjust wages to maintain purchasing power and to adopt resilient strategies to ensure Pakistan is well prepared for such crises.