Area of interest

:

Finance

Research Topic: Investigation of Debt burden on Pakistan.

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GDP and Foreign debt. fiscal deficit and terms of trade on external debt of Pakistan. The amount of loans of debt servicing. The main objective of this research article was to find out impact of debt on economy of Pakistan. Foreign debt. Ho: Pakistan economy is not depressed with the increase in debt. GDP. Habib ur Rahman of 2010 The purpose of the research to find The Impact of foreign debt on Pakistan’s Economy. fiscal deficit and terms of trade on external debt of Pakistan.e. Different 2 . Methodology    1978-2004 Secondary data Annual reports of SBP and Ministry of fiancé. Main Variables Hypothesis Major Findings The debt burden on Pakistan is constantly increasing since 1948 and have is effecting the economy of Pakistan badly.. H1: Pakistan economy is depressed with the increase in debt. In other words the country is caught up in whirlpool of indebtedness. Nabeela Asghar. Hafeez ur Rehman of June-2011 The purpose of the research to find out the impact of exchange rate. Asma Awan. Conclusion Fact Sheet 2: Topic Author Year Publication Theoretical The impact of exchange rate. is rapidly increasing instead of reducing. which phenomena aggravating the situation with each day is passed. Different variables used to prove his statement i.Fact Sheet 1: Topic Author Year Publication Theoretical framework Objectives The Impact of foreign debt on Pakistan’s Economy Dr. Pakistan’s economy is still constantly depressed with ever increasing burden of foreign loans.

Tanzeela Anwar. Vector Error Correction Model.. To proof the relationship the author himself used different variables (GDP and public debt). Variables like nominal exchange rate. The objective of the article as to find out whether the devaluation of dollar means the inflation will increase in US. While for analysis linear model used. Ho: No significant relationship b/w debt and causative factors. Currently external debt of Pakistan has reached at an alarming level and Pakistan economy is fully trapped in the external debt and is forced to borrow from international donor agencies (IMF and World Bank) for meeting its debt obligations. H1: Significant relationship b/w debt and causative factors.     Conclusion Fact Sheet 3: Topic Author Year Publication Theoretical framework Public debt and economic growth in Pakistan. External debt and its causative factors (nominal exchange rate. Co integration Test. of January 2012. There are basically three 3 . The study found positive relationship between foreign debt and fiscal deficit as expected but insignificant coefficient apparently indicates that no valid conclusion can be drawn regarding the relationship between foreign debt and fiscal deficit in the context of Pakistan economy. Different theories/articles are used to proof that there exists a relationship. fiscal deficit and terms of trade are also used. Key findings of the study pointed out that depreciation of domestic currency and deterioration in terms of trade are significant factors responsible for foreign indebtedness in Pakistan. fiscal deficit and terms of trade). The purpose of the research to find relationship between Public debt and economic growth in Pakistan. Stability Tests. Main Variables Hypothesis Methodology Major Findings 1974-2008 Secondary data Annual data Linear regression.framework Objectives theories/articles are used to find the impact. Syed Imran Rais. Diagnostic Tests.

Ho: There is no significant relationship between Public debt and GDP. it can be noticed that both domestic and external debt negatively affect the economic growth. Public debt and GDP. It we see results of regression. The main objective of this research article was to find out the relationship between the domestic debt and economic growth. Effective and efficient utilization of public debt can increase economic growth. Khadija Tariq. external debt model and growth model. Ho: There is no significant relationship Domestic debt and economic growth.Objectives models that will be used for regression. H1: There is significant relationship between Domestic debt and economic 4 Objectives Main Variables Hypothesis . To proof the relationship the author himself used different variables (domestic debt and economic growth). excessive reliance on public debt creates macroeconomic problems. Domestic debt effects positively to consumption expenditures (both public and private) and exports and negatively effects investment. Muhammad Zahir Faridi..  Domestic debt model. Main Variables Hypothesis Methodology Major Findings Conclusion  Secondary annual data from SBP. of December 2010 The purpose of the research to find relationship between Domestic Debt and Economic Growth in Pakistan. Public debt is an important means of bridging government financing gaps. These models include domestic debt model. The basic objective of this research is to find out the effect of public debt on Pakistan’s economy. Muhammad Ramzan Sheikh. H1: There is significant relationship between Public debt and GDP. However. Domestic debt and economic growth. Different theories/articles are used to proof that there exists a relationship.  1972 TO 2010. Fact Sheet 4: Topic Author Year Publication Theoretical Framework Domestic Debt and Economic Growth in Pakistan. external debt model and growth model.

debt. employment rate). employment rate.growth. Objectives Main Variables Hypothesis 5 . The findings of study reveal that the negative impact of domestic debt servicing on economic growth is stronger than positive impact of domestic debt on economic growth. export. export. Karamat Ali. This clearly means that the resources generated through domestic borrowing have been used partially to finance those expenditures of government which contribute the economic growth.     Major Findings Conclusion Fact Sheet 5: Topic Author Year Publication Theoretical framework Public Debt Burden and Economic Growth: Evidence from Pakistan Muhammad Nadeem Qureshi. To proof the relationship the author himself used different variables (GDP. of 2010 The purpose of the research to find relationship between Public Debt Burden and Economic Growth. The main objective of this research was to find out relationship b/w debt economic growth. This result is due to the fact that huge burden of non-development expenditures impedes the economic growth. The study also observes that there is an inverse relationship between domestic debt servicing and economic growth. The study indicates that the stock of domestic debt affects the economic growth positively in Pakistan. Methodology Econometric models (OLS method). Different theories/articles are used to proof that there exists a relationship. The study also suggests some polices to settle the outstanding domestic debt. the government of Pakistan. Secondary data 1971-72 to 2008-09 Annual Reports of State Bank of Pakistan and Economic Survey of Ministry of Finance. Ho: There is no significant relationship between Public Debt Burden and Economic Growth. H1: There is positive relationship between Public Debt Burden and Economic Growth. GDP. debt.

Different theories/articles are used to proof that there exists a relationship b/w debt and economy. The magnitude of the debt burden is increasing day by day which is increasing the dependency of Pakistan on external resources. To proof the relationship the author himself used different variables (GPD. exports. Major Findings Conclusion There is negative relationship b/w debt and economy as the debt increases the economy of Pakistan face crisis. and a big amount form received borrowings is used for debt return and its interest. imports. large amounts of borrowing are still continued from Breton wood institutions (IMF and World Bank) and from developed nations. Statistical Periodicals of the State Bank of Pakistan. Ho: The Pakistan economy is not becoming worse with the increase of debt. Maryam Shakur of 16 November. Mehboob Ahmed. The economic 6 . Nowadays. Pakistan economic survey. GPD. imports. investment). Fact Sheet 6: Topic Author Year Publication Theoretical framework Debt (a real hurdle in the economic growth of Pakistan): A time series analysis. Pakistan is in a real debt-trap. by finding the causality between them. Objectives Main Variables Hypothesis Methodology     Augmented Dickey-Fuller unit root test Secondary data 1980 to 1981 to 2007 to 2008. H1: The Pakistan economy is becoming worse with the increase of debt.Methodology Major Findings Conclusion  World Development Indicators 2010 and Pakistan Economic  1981 to 2008  Secondary data  Single equation models There is vast negative impact of public debt on the economy of Pakistan Public debt is a real hurdle for the economic development of Pakistan. Augmented DickeyFuller unit root test use for analysis. exports. 2011 The purpose of the research to find effect of debt on Pakistan economy. investment. The purpose of the study is to highlight the impact of debt growth of Pakistan.

Johansen Co integration test and Granger causality test use for analysis. Methodology     Johansen Co integration test and Granger causality test Secondary data 1980 to 2010. therefore Pakistan will not be able to stand on its feet. Mohsin Nawaz . H1: No relation b/w debt and economy. Fact Sheet 7: Topic Author Year Publication Theoretical framework Does External Debt Causes Economic Growth: A Case Study of Pakistan. exports. 7 . Maria Qureshi. This study attempts to examine the long run and short run dynamics of external debt and economic growth in Pakistan.situation is getting worse with the passage of time. if same situation of external borrowing will prevail. GPD employment. gross fixed capita formation and debt). Economic Survey of Pakistan and World Development Indicators (WDI) Major Findings Conclusion The Johansen co integration results show a long run relationship between external debt and GDP exist there. gross fixed capita formation and debt Ho: No relation b/w debt and economy. To proof the relationship the author himself used different variables (GPD employment. Naveed Wahid Awan of 2012 Objectives Main Variables Hypothesis This study attempts to examine the long run and short run dynamics of external debt and economic growth in Pakistan. Pakistan’s external debt is sustainable and external finance could be used to meet the deficiency of capital. Different theories/articles are used to proof that there exists a relationship b/w debt and economy. The Granger causality test shows the bidirectional causality runs between GDP and capital stock and unidirectional causality runs from GDP to External debt. exports.

Log of Total Domestic Debt in Million Rupees. Increasing debt has constant threat for Pakistan future as the economy of Pakistan will face crisis as the debt increases. Following variables are used (Unemployment Rate in Economy. Secondary data 1989-90 to 2009-10 Pakistan Economic Survey (various issues). Fifty Year Economy of Pakistan (SBP) and World Bank The external debt and liabilities to GDP ratio is found positively related with the growth of manufacturing sector. CPI Inflation Rate. Trade Openness) and uses regression analysis. Ministry of Finance. Log of Total Domestic Debt in Million Rupees. & Sajida Yaqub of July 2012 The purpose of the research to find Debt Burden of Pakistan: Impact and Remedies for Future. Objectives Main Variables Hypothesis Methodology Major Findings Conclusion regression analysis. Total domestic debt has been investigated to have negative relation with unemployment rate in the economy. Ratio of External Debt and Liabilities to GDP. Imran Sharif Chaudhry. The main objective of this research article was to find out Debt Burden of Pakistan: Impact and Remedies for Future. CPI Inflation Rate. Different theories/articles are used to support the statement. Ratio of External Debt and Liabilities to GDP. Trade Openness Ho: Foreign debt does not help in developing Pakistan economy. Unemployment Rate in Economy. Total Exports to GDP Ratio. Total Exports to GDP Ratio. SPSS.Fact Sheet 8: Topic Author Year Publication Theoretical framework Debt Burden of Pakistan: Impact and Remedies for Future. Weak but statistically significant relationship has also been found between external debt and liabilities to GDP ratio and unemployment rate of the economy for the last two decades.     8 . SPSS for analysis to find relationship between them. H1: Foreign debt does help in developing Pakistan economy. Muhammad Ayyoub.

The effect of the volume of domestic debt and domestic debt servicing on price level is found to be positive and statistically significant. This study investigates the impact of domestic debt on inflation in Pakistan for the period 1972 to 2009. of October 2012 The purpose of the research to find Domestic Debt and Inflationary Effects on Pakistan. Money Supply. Objectives Main Variables Hypothesis Methodology Major Findings Conclusion Regression model 1971-72 to 2008-09.Secondary data Annual Reports of the State Bank of Pakistan and the Economic Survey of the Ministry of Finance of The study observes that domestic debt and domestic debt servicing enhance the price level in Pakistan. Government Expenditures. Exports. Author himself used different variables (Consumer Price Index. Muhammad Javed Ahmad. and Budget Deficit) and uses regression analysis to support its statement. Khadija Tariq. Consumer Price Index. Moreover cost of domestic borrowing is a huge burden on budget and to finance budget deficit government has to resort to different sources and deficit financing leads to decrease in value of currency. Government Expenditures. Money Supply. Muhammad Ramzan Sheikh. H1: debt has effect on Pakistan economy. ultimately creates inflation. The volume of domestic debt and servicing of the domestic debt have significant positive effects on the price level. Different theories/articles are used to investigate the statement.Fact Sheet 9: Topic Author Year Publication Theoretical framework Domestic Debt and Inflationary Effects: An Evidence from Pakistan. Total Domestic Debt. Exports. Total Domestic Debt.    9 . and Budget Deficit Ho: debt has no effect on Pakistan economy. Private Investment. Private Investment.

H1: There is significant effect debt on Pakistan economy. Jahanzaib haider. macroeconomic imbalances and loss of competitiveness in the international market.     10 . debt-servicing. Akbar ali of 6. Large part of our GDP has spend to meet the debt obligation. Economic Surveys from various issues. debt-servicing. real gross investment (capital). Different theories/articles are used to study the responses. and Pakistan has reached at this stage.Fact Sheet 10: Topic Author Year Publication Theoretical framework Impact of debt burden on economic growth: A case of Pakistan. The main objective of this research article was to find Impact of debt burden on economic growth. employed labor force Ho: There is no significant effect debt on Pakistan economy. Objectives Main Variables Hypothesis Methodology Major Findings Conclusion Regression model 1964 to 2007 Secondary data Government of Pakistan (GOP). The debt-servicing has negative impact on the productivity of labor and investment that in turn has adversely affected the economic growth that severely constrains the ability of the country to service debt and thus lending support to debt-overhang hypothesis in Pakistan Overall. empirical evidence suggest that external debt slows growth when the debt service payments exceeds 50% of the GDP. The high debt burden has stemmed from mismanagement of resources. To study more authors himself used different variables (real GDP. real GDP. real gross investment (capital). employed labor force) and uses regression model. The negative relationship between foreign debt and GDP indicate that the foreign resources were misallocated and wasted. the results indicate that debt overhang is important factor in debt scenario in Pakistan. September 2012 The purpose of the research to find Impact of debt burden on economic growth.

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