Political Instability and the Budget Deficit in Economy: A Case of Pakistan

Mushtaq, Abdul Qadir; Muzaffar, Muhammad; Ali, Anwar

doi:10.35484/pssr.2017(1-i)01

Cited by 5 publications

(5 citation statements)

References 6 publications

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“…On December 8, 1958, Pakistan borrowed 25 million SDRs under the Standby Arrangement for the first time, but the agreement was dissolved before it expired, and the entire loan amount remained undrawn. Pakistan's government seeks loans from the IMF to keep its balance of payments in line and satisfy its financial obligations (Mushtaq, et al 2017). The primary goal of obtaining IMF loans is for the Pakistani government to stabilize the country's deteriorating economy, exchange rates, and balance of payments; however, this relief is usually only temporary, and it often leads to a new crisis in the long run as the debt matures and the government returns to an in long run and short run monetary crisis due to insufficient dollar raising in the federal reserve.…”

Section: Pakistan and International Monetary Fundmentioning

confidence: 99%

The Stability of Pakistan Economy and IMF Deals: An Analysis

2024

PSSR

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This study examined the time series analysis of the Stability of Pakistan Economy and IMF Deals" from 1992 to 2021. The data utilized in this research is secondary, and we gather it from the source's World Bank and Economics survey of Pakistan. Logistic regression and Autoregressive distribution lags methods applied to determine the economic factors compelling Pakistan to continue relying on the IMF and establish a link between IMF loans and Pakistan's economy. Gross Domestic Product (GDP), Imports to Exports Ratio (IMPEX), Reserves (RES), Current account balance (CUR), Total debt service (TDS), Primary Deficit (PD), Government final consumption expenditure (GOV), Tax revenue (TR) and Governance (AVGGI) has been statistically significant impact on the IMF deals with Pakistan government in logistic regression model and Autoregressive distribution lags ARDL. We find that policy actions to increase tax revenue, decrease government expenditures, decrease imports, the exports ratio and adjust the exchange rate are essential considerations.

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Section: Pakistan and International Monetary Fundmentioning

confidence: 99%

The Stability of Pakistan Economy and IMF Deals: An Analysis

2024

PSSR

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“…Due to an unreliable economic growth rate, a balance of payments issue, rising debt obligations, and a dismal tax system that discourages foreign investors from investing in Pakistan, the country's current account and budget deficits worsen. (Mushtaq, et. al.…”

Section: Introductionmentioning

confidence: 99%

Impact of Inflation and FDI on Economic Growth: A Time Series: Analysis of Pakistan

2023

plhr

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The objective of this research paper is to check the impact of inflation, exchange rate and FDI and economic development researcher used time series data from 1973 to 2020 for my project, which researcher gathered from the sources World development indicator and State Bank of Pakistan. For inflation researcher used the proxy of Consumer Price Index (CPI), and other variables remain the same. The study paper's goal is to provide answers to the following questions: What percentage of inflation is beneficial to an economy? The three factors in the study paper's subject have a favorable long-term association with the findings. This indicates that when inflation is below the 2.80 percent barrier, which is the point at which it hinders growth, the Pakistani economy expands at its fastest rate. The marginal effect of FDI on growth is found to be positive when inflation is below the threshold, but it is found to be negative when inflation is over the threshold. In conclusion, the Pakistani government must harness, develop, and stabilize the nation's macroeconomic system while ensuring that inflation stays below the threshold in order to prevent alienating foreign investors.

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“…The results are fiscal imbalances and political manipulations as the constituent units lack resources to meet their expenditures. It requires the correction of imbalances for the federation to continue to exist, through intergovernmental transfers which dents the governance of the governments (Mushtaq, Muzaffar & Ali, 2017).…”

Section: Introductionmentioning

confidence: 99%

Issues in Fiscal Governance: A Case of Pakistan

Mateen Khan

2023

JDSS

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Studies conducted on the governance in federal states have varying results for the developed and the developing countries. While the Federalism has successfully addressed the issues of accountability, decentralization and the government performance in developed sates, it remains an issue in the countries of the South including Pakistan. Political leadership has failed in pursuit of the goals of revenue collection and carrying out development and social service program. Resultantly, Pakistan's economy faces problems like ever increasing budget deficits, public debt and inflation. The lack of accountability and the capacity gap in revenue and expenditure needs have raised question over the structure of federalism. This paper argues that issues facing management in the government structure has been the denial to people as part of the decision-making process in democratic dispensation at the lower echelon of the state structure. As far as the objectives of the study are concerned, an effort has been made to identify the key components of fiscal governance in Pakistan, assessing the effectiveness of fiscal institutions, analyzing the impact of fiscal policy on economic growth and stability and examining the challenges in revenue generation. A descriptive-analytical method has been adopted to carry out this research work. Lastly, there is need to develop a policy by ensuring regular elections at the local level with clear rules about the terms and tenure of the elected representative elected representatives will know that their mandate and term of office will directly depend on local voters.

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Political Instability and the Budget Deficit in Economy: A Case of Pakistan

Cited by 5 publications

References 6 publications

The Stability of Pakistan Economy and IMF Deals: An Analysis

The Stability of Pakistan Economy and IMF Deals: An Analysis

Impact of Inflation and FDI on Economic Growth: A Time Series: Analysis of Pakistan

Issues in Fiscal Governance: A Case of Pakistan

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