IMF Working Papers

Fiscal Policy in Pakistan Since 1970

November 1, 1992

Preview Citation

Format: Chicago

Fiscal Policy in Pakistan Since 1970, (USA: International Monetary Fund, 1992) accessed December 22, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The analysis in this paper suggests that the large fiscal deficits that Pakistan has experienced over most of the period since 1970 led to some crowding out of private investment, resulting in slower output growth than would otherwise have been observed. Past fiscal deficits have also resulted in a substantial accumulation of domestic and external debt. In addition, the possibilities for currency substitution that have been created by the removal of restrictions on capital flows from Pakistan, as well as on foreign currency holdings of domestic residents, may have limited the potential for collecting the inflation tax. Accordingly, continued effort is likely to be needed to attain a fiscal position that is sustainable over the medium term.

Subject: Economic sectors, Fiscal policy, Government debt management, Inflation, Prices, Public debt, Public financial management (PFM), Public sector

Keywords: Capital stock, Control in Pakistan, Deficit control, Deficit estimate, Deficit increase, Deficit ratio, Deficit reduction, Deficit reduction program, Fiscal deficit, Government debt management, Growth-adjusted deficit ratio, Inflation, Middle East, Price level, Public sector, Rate of inflation, Reduction scenario, Reduction strategy, Trade balance, WP

Publication Details

  • Pages:

    38

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1992/097

  • Stock No:

    WPIEA0971992

  • ISBN:

    9781451949506

  • ISSN:

    1018-5941

Notes

Also published in Staff Papers, Vol. 40, No. 2, June 1993.

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