EFFECTS OF FOREIGN DEBT ON PAKISTAN

COMPOSITION OF GROUP Abida Khatoon Niazi Sadia rafaqat Sonia Hameed Sana Altaf Raja Zeeshan Zafar Shahab Sultan Rao Shahzad Shabbir Muhammad Murad Ali Khan Nauman Khalil Nasir Nazir .

It involves payment in the form of money as well as goods and services.WHAT THE TERM DEBT MEANS! Obligation that a debtor owes to a creditor. External Debt/ Internal Debt .

How Foreign Debt Effects Our« National Savings Investments Economic Growth .

Literature Survey Time-series data for period from 1970 to 2003. Negative effect on the productivity of labor and capital. .GDP and thereby affect economic growth Kemal (2001) explains the debt accumulation and its implications for growth and poverty in Pakistan.

.Literature Survey Siddiqui and Malik (2002) estimate directly the impact of debt on GDP growth rate and argue that debt accumulation and growth have a nonlinear relationship: up to a certain level the impact is positive and beyond the threshold level the relationship turns negative.

Theoretical Framework: Dependent Variable: Foreign debt Independent variable: Value of Currency Economic Stability Political Stability Oil Prices .

Independent variable Value of currency Dependent Variable Economic stability Foreign Debts Political stability Oil prices .

Lower the foreign debt Hypothesis 3: There is a relationship between oil prices and foreign debt.Hypothesis Testing Hypothesis 1: If increase in the value of currency then decrease foreign debt Hypothesis 2: The higher economic stability. Hypothesis 4: If increase in political stability then decrease in foreign debt. . the.

Research Design Nature of the Research Purpose of the Study Type of Investigation Researcher Interference Study setting Unit of Analysis Time Horizon of study .

Conclusion The main focus of this study is to analyze the effect of rising debt on economic growth Pakistan¶s external debt towards the end of the 1990s reached alarming proportions. . which posed a serious danger to the economic future of the country.

.Conclusion There is strong evidence that governance mechanism for the use and monitoring of funds generated through external borrowing needs much improvement.

The country¶s political leadership must take practical steps to improve the law and order situation particularly .Recommendations First of all. Pakistan should make stronger efforts to avoid as much foreign debt as possible. Political stability and satisfactory law and order are likewise critical to avoid Foreign debt.

. Improve the tax collection procedure so that there is more income generated inside the country resulting in less amount of foreign debt. Improving the infrastructure of the country.Recommendations in the major ³growth poles´ of the country including Karachi.

.Recommendations Take confidence building measures to have a strong partnership between public and private sector.

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