Issue in Pakistan Economy

DEPARTMENT OF ECONOMICS

ECON 506
(Issus in Pakistan Economy)

Research Paper

Debt Sustainability
(A case study in Pakistan)

Presented By:
Asif Masih
Roll # 12-27016
&
Yousaf Asghar Dar
Roll# 12-27010

Presented To:
Prof. Dr. M. Aslam Ch.











FORMAN CHRISTIAN COLLEGE LAHORE
(A Chartered University)







Introduction
fetching debt is not an issue if it is accelerating the economic growth by change magnitude productive Investment and improving infrastructure and if country is fashioning timely repayment of debt but according to debt overhang theories; monstrous debt may hinder economic growth. Pakistan is in the same spotlight of high level of public debt and low economic growth. The climbing external debt of Pakistan is hindering the economic growth by creating the extensive bud calculate deficit, current account deficit and saving investiture gap. Debt is getting larger and budget deficit is financing by further borrowing resulting in continuous and unstoppable drawstring of huge debt burden.

According to debt Laffer curve, larger debt stock tends to be associated with trim back possibility of debt repayment.



Pakistans external debt is on the rapid source as it has gone up from $8602 one thousand million in 1970 to $44500 million in 2009 and it is $52831 in 2010 which is increased by 18% from 2009 to 2010. increase trend of debt since 1970 shows the alarming situation of the economy of Pakistan. Which prove that debt is a major economic issue in Pakistan.

Debt sustainability is the ability to realize its medium and long term debt obligations. Its important to operate the debt sustainability of developing countries because it is important for world stability. Debt sustainability appeared to be crucial and minute issue of primary imbalances in Pakistans economy so there is need to conduct a study in secernate to check unsustainability and long term solutions in order to improve debt management by the government.

According to Chaudhary and Kiyoshi (1999) about...If you want to get a full essay, order it on our website: Ordercustompaper.com



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