Post-COVID-19 outbreaks and the Russian-Ukraine war seriously disturb the energy supply chain, which causes massive inflation worldwide. This inflation badly affected developing countries because of the poor population living in these countries. This study explores the different determinants of inflation in Pakistan by considering the global crude oil prices (COP) energy prices by using the annual time series data from 1980 to 2020. This study measured inflation by using CPI as the dependent variable, while COP was the key independent variable by controlling the exchange rate, GDP, and remittances. The empirical results are estimated by using the non-linear ARDL econometric approach. The study proposes the U-shaped relationship of COP with CPI. Furthermore, foreign remittance and GDP per capita also contribute to domestic inflation. The present study suggests that government should take steps to decrease dependence on imported energy resources to make Pakistan prosperous.

The current research intends to look at the asymmetrical influence of institutional quality (IQ) on carbon emissions (????????2e) by incorporating additional variables i.e., trade openness (TO), population growth (PG), and energy use (E) over the period 1980-2020. The current study used nonlinear ARDL to demonstrate the nonlinear influence of IQ on ????????2e. The empirical finding suggests that positive fluctuation in institutional quality considerably improves the environmental quality in Pakistan in the short and long run. At the same time, the outcomes show that negative fluctuations in IQ lead to considerably contributed to ????????2e in long run. GDP and E are positively connected with ????????2e. The policy makers could need to enhance the institutional quality leads to attaining the long-term ecological objectives.