Issue in Pakistan Economy

DEPARTMENT OF ECONOMICS ECON 506 (Issus in Pakistan Economy) Research Paper Debt Sustainability (A effort 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 economical growth by change magnitude productive enthronization and improving infrastructure and if country is fashioning timely quittance of debt but according to debt overhang theories; monstrous debt may clog economic growth. Pakistan is in the same spotlight of high aim of public debt and low economic growth. The climbing external debt of Pakistan is hindering the economic growth by creating the extensive bud drive deficit, current account deficit and saving investiture gap. Debt is getting larger and budget deficit is financing by just borrow ing resulting in continuous and unstoppable drawstring of massive debt burden. concord to debt Laffer curve, larger debt stock tends to be associated with trim affirm possibility of debt repayment. Pakistans external debt is on the rapid blood 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 prudence of Pakistan. Which prove that debt is a major economic issue in Pakistan. Debt sustainability is the ability to realize its medium and long bound 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 imp rove debt management by the government. A! ccording to Chaudhary and Kiyoshi (1999) about...If you want to get a full essay, order it on our website: BestEssayCheap.com

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