BS ECONOMICS

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Browsing BS ECONOMICS by Author "Hina Rasool"

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    Factors Affecting the Public Debt: Time Series Analysis of Pakistan
    (UMT, Lahore, 2015) Hina Rasool
    The modest level, debt recovers benefit and increases growth. A high level debt can be harmful. How does debt move in relation to its determinants will lecture this query using a new dataset that include the budget deficit, debt servicing, real effective exchange rate, and GDP per capita. Currently, Pakistan is suffering from a severe debt-trap. Pakistan has loaned out a bulky amount of debt from the external sources together with large amounts of borrowings from World Bank, IMF and some developed nations are still continued. Whereas, a huge quantity from the established borrowings has been used for repayment of debt and the interest on it. Debt servicing has enlarged the budget deficit that in turn generates the necessity of extra borrowing. The external debt of Pakistan seem to be the reason of all the calamities bothering the budget. Even the IMF and World Bank papers on Pakistan reflect the external debt liability is a main cause of all the troubles in the economy. The aim of the article is some important factor contributing to the nexus of debt in Pakistan from 1976 to 2013. The direct implicate is that countries with high debt must act quickly and decisively to address their fiscal problems. Budget Deficit, Debt servicing and GDP per capita have significant relation with Total Debt and Internal Debt in long run with a positive correlation. Whereas, Real External Debt Stock is reflecting a significant & positive correlation with Budget Deficit, Debt servicing, GDP per capita and Real Effective Exchange Rate except Budget Deficit.