Download or read book Macroeconomic Management Monetary and Fiscal Policy of Pakistan written by Ghulam Shabbir and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book has empirically investigated the impacts of Pakistan's demand management policies on foreign sector. The transmission mechanism between monetary policy and aggregate demand has been analyzed by using the monetary approach, which depicts that disequilibrium in the balance of payments is the result of domestic money market imbalance. Pakistan is the 27th largest economy of the world in terms of purchasing power parity. During 1970s and 1990s, economic performance of Pakistan remained poor due to nationalization of various sectors and macroeconomic mismanagement. Pakistan's economy became one of the four fastest growing economies in the South Asia during 2000-2007, which was the result of effective strategies of the monetary authorities. Presently, the economy is suffering due to poor law and order situation and nation's involvement in the War on Terrorism. The findings of the study are: government budget deficit has significant impact on money supply and increase in money supply has deteriorated the balance of payments proportionally during the period of 1965-99. These empirical findings have equal importance for academicians as well as economic managers of the country.
Download or read book Pakistan written by International Monetary Fund and published by International Monetary Fund. This book was released on 2008-12-02 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pakistan’s authorities have requested a 23-month Stand-By Arrangement for SDR 5.169 billion in support of their macroeconomic stabilization program. The authorities’ program envisages a tightening of fiscal and monetary policies to bring down inflation and reduce the external current account deficit to more sustainable levels. The pace of adjustment seeks to balance the need to address the current macroeconomic imbalances with protecting social stability. The program envisages important reforms in tax policy and administration and public financial management.
Download or read book Fiscal Policy and Long Term Growth written by International Monetary Fund and published by International Monetary Fund. This book was released on 2015-04-20 with total page 257 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model.
Download or read book Macroeconomic Policies and the Balance of Payments in Pakistan written by International Monetary Fund and published by International Monetary Fund. This book was released on 1990-09-01 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper describes developments in the balance of payments of Pakistan during 1972-86, focusing particularly on the factors that gave rise to external payments problems and the macroeconomics policies that were adopted by the authorities. While performance on the growth and inflation fronts compares favorably with other developing countries, the balance of payments remained persistently weak. A combination of favorable external shocks, such as the large increase in workers’ remittances and sizable foreign aid inflows, allowed the economy some breathing room, but ultimately did not reduce the need for comprehensive fiscal and trade reforms to ensure medium-term viability of the balance of payments.
Download or read book Pakistan written by International Monetary Fund and published by International Monetary Fund. This book was released on 1996-02-15 with total page 113 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews economic developments in Pakistan during 1990–95. The authorities succeeded in reducing the budget deficit and in slowing down the growth of the net domestic assets of the banking system in 1993/94. These tighter financial policies led to a marked reduction in the macroeconomic imbalances that had flared up in 1992/93; in particular, they were reflected in a much narrower external current account deficit. Moreover, the strong stance of demand management contributed to a turnaround in private sector confidence, which was evidenced by large capital inflows.
Download or read book An Empirical Evaluation of Monetary and Fiscal Policy in Pakistan written by Rozina Shaheen and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis studies the relative roles of monetary and fiscal policies to achieve the basic macroeconomic objectives of stable prices with sustainable growth in Pakistan. Using data from December 1981 till June 2008, the changes in the monetary policy stance are shown to be capable of affecting the domestic price level and output growth. This thesis also tests the fiscal theory of price determination using quarterly data for the sample period 1977q1-2009q4, by investigating the relationship between the fiscal deficit, debt accumulation and inflation dynamics. The estimates reveal that there exists a fiscal dominant regime for most of the sample period since the fiscal authority is insensitive to monetary policy in the sense that neither taxes nor expenditure react (now or in the future) to the changes in the stock of outstanding government debt. It is also found that changes in the primary deficit exert an effect on aggregate demand which is also evidence of an active fiscal policy regime. This study also explores the indirect channels of fiscal regime by including a monetary, real sector, exchange rate and the consolidated budget deficit variables in three different specifications of vector error correction models and finds the monetary and fiscal variables as the key determinants of inflation in Pakistan. It also suggests a positive and significant relationship between the budget deficit and seigniorage revenues, confirming the monetisation of the fiscal deficit and indirect evidence of the fiscal dominance in the economy. In addition, this thesis employs a SVAR specification of exogenous fiscal policy shocks to observe the relative effectiveness of fiscal multipliers and finds their significant role to affect inflation and output in the economy. Finally this study develops and estimates a small macro-econometric model and then it is used to assess the relative performance of the monetary and fiscal policies in Pakistan. Policy simulations suggest that if Pakistan follows a rule based regime then macroeconomic stability can be improved in terms of the stability of output and inflation.
Download or read book Fiscal Policy in Pakistan Since 1970 written by International Monetary Fund and published by International Monetary Fund. This book was released on 1992-11-01 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book The Impact of Fiscal Policy on Economic Growth A Case Study of Pakistan 2002 2014 written by Ruman Khan and published by . This book was released on 2016-08-19 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2016 in the subject Economy - Theory of Competition, Competition Policy, grade: A, course: Economics, language: English, abstract: In this study we will assess the impact of fiscal policy on economic growth during the period of 2002-2014. The data of the study will be collected from economic surveys of Pakistan various editions, statistical supplements and Budget documents. To check the stationarity of the data, computer software will be used for a fitting auto-regressive time series model. The study is designed as follows: Literature available on this topic is analyzed in section two, objective of the study, hypothesis of the study, model fitting, source of data, methodology, conclusion and references are presented in chapter three, four, five, six, seven and eight respectively. Fiscal policy is the effective and practical policy of all governments. Under fiscal policy a government uses its expenses or expenditures (developmental and non-developmental) and revenues (taxes and non-taxes) to produce desirable effects on economic activities and avoid undesirable ones on the national income, production and employment opportunities in a country. It also plays a vital role in the leading overall economic activities. According to F.R.Glahe (1985), "By fiscal policy is meant the regulation of the level of government expenditure and taxation to achieve full employment without inflation in the economy." If the mass community of a country have an access to comparatively superior and abundant commodities, if the per capita income is accumulative, if the lives of the public are becoming easier and luxurious and if value added commodities are available in the market over a long period of time then it means that the country is economically growing and economic growth is taking place. As economic growth is a multidimensional phenomenon. It depends upon a large number of macro inputs. It is affected by various variables and lays impact upon differen
Download or read book Pakistan written by International Monetary Fund. Middle East and Central Asia Dept. and published by International Monetary Fund. This book was released on 2015-04-06 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: EXECUTIVE SUMMARY Extended Arrangement under the Extended Fund Facility (EFF): A 36 month, SDR 4,393 million (425 percent of quota) Extended Arrangement under the EFF was approved by the Executive Board on September 4, 2013 and the fourth and fifth reviews were completed on December 17, 2014, for a total disbursement of SDR 2,160 million. The sixth tranche amounting to SDR 360 million will be available upon the completion of this review. Status of the program: All end-December 2014 quantitative performance criteria (PCs) were observed, as well as the indicative target on cash transfers under the Benazir Income Support program (BISP). Although the indicative target on federal tax revenues was missed, the authorities have taken actions to address the shortfall and are on track to meet the end-March 2015 indicative target. The end-December 2014 structural benchmark (SB) on amendments to the relevant tax laws and submission of the Anti- Money Laundering Act (AMLA) was met, as were the end-February SBs on enhancing internal operations and risk management of the State Bank of Pakistan (SBP) and improving monetary policy operations. Adjustments to the end-March PCs on NIR and NDA are proposed to reflect higher reserves accumulation by the SBP and new end- June PCs and four new SBs are proposed. Key issues: Discussions focused on: (i) saving the windfall from falling oil prices to strengthen buffers?including foreign exchange reserves and the fiscal stance?against adverse shocks; (ii) preventing a further loss of export competitiveness; (iii) reducing electricity subsidies; (iv) introducing compensatory measures to cover the revenue shortfall; (v) steps to broaden the tax base and improve tax administration; (vi) progress on safeguarding financial stability and expanding credit growth; (vii) enhancing structural reforms in the energy sector, central bank independence, anti-money laundering framework, public debt management, trade, and the business climate to unlock Pakistan’s long-term growth potential. The mission retained its growth projection at 4.3 percent, but lowered inflation forecast to 5.5 percent for FY2014/15. Risks are balanced with downside risks due to political uncertainties and security challenges, and upside risks from further falls in oil prices. Outreach activities included a press release, press conference (held in Dubai) and bilateral interviews with journalists.
Download or read book The Effectiveness of Fiscal Policy in Stimulating Economic Activity written by Richard Hemming and published by International Monetary Fund. This book was released on 2002-12 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.
Download or read book Pakistan written by International Monetary Fund. Middle East and Central Asia Dept. and published by International Monetary Fund. This book was released on 2015-04-07 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: EXECUTIVE SUMMARY Extended Arrangement under the Extended Fund Facility (EFF): A 36 month, SDR 4,393 million (425 percent of quota) Extended Arrangement under the EFF was approved by the Executive Board on September 4, 2013 and the fourth and fifth reviews were completed on December 17, 2014, for a total disbursement of SDR 2,160 million. The sixth tranche amounting to SDR 360 million will be available upon the completion of this review. Status of the program: All end-December 2014 quantitative performance criteria (PCs) were observed, as well as the indicative target on cash transfers under the Benazir Income Support program (BISP). Although the indicative target on federal tax revenues was missed, the authorities have taken actions to address the shortfall and are on track to meet the end-March 2015 indicative target. The end-December 2014 structural benchmark (SB) on amendments to the relevant tax laws and submission of the Anti- Money Laundering Act (AMLA) was met, as were the end-February SBs on enhancing internal operations and risk management of the State Bank of Pakistan (SBP) and improving monetary policy operations. Adjustments to the end-March PCs on NIR and NDA are proposed to reflect higher reserves accumulation by the SBP and new end- June PCs and four new SBs are proposed. Key issues: Discussions focused on: (i) saving the windfall from falling oil prices to strengthen buffers?including foreign exchange reserves and the fiscal stance?against adverse shocks; (ii) preventing a further loss of export competitiveness; (iii) reducing electricity subsidies; (iv) introducing compensatory measures to cover the revenue shortfall; (v) steps to broaden the tax base and improve tax administration; (vi) progress on safeguarding financial stability and expanding credit growth; (vii) enhancing structural reforms in the energy sector, central bank independence, anti-money laundering framework, public debt management, trade, and the business climate to unlock Pakistan’s long-term growth potential. The mission retained its growth projection at 4.3 percent, but lowered inflation forecast to 5.5 percent for FY2014/15. Risks are balanced with downside risks due to political uncertainties and security challenges, and upside risks from further falls in oil prices. Outreach activities included a press release, press conference (held in Dubai) and bilateral interviews with journalists.
Download or read book Pakistan written by International Monetary and published by International Monetary Fund. This book was released on 2022-09 with total page 112 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic activity remained robust in FY22, fueled by loose fiscal policy and a delayed monetary response to inflationary pressures. These combined with the international food and fuel price shocks led to a marked deterioration of the external position with an unsustainable current account deficit, a significant decline in reserves, and a marked depreciation of the rupee. At the same time, inflation has increased considerably, putting pressure particularly on the more vulnerable.
Download or read book Monetary Fiscal Trade Policy and Economic Growth in Pakistan written by Syed Tehseen Jawaid and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study empirically examines the effect of monetary, fiscal and trade policy on economic growth in Pakistan using annual time series data from 1981 to 2009. Money supply, government expenditure and trade openness are used as proxies of monetary, fiscal and trade policy respectively. Cointegration and error correction model indicate the existence of positive significant long run and short run relationship of monetary and fiscal policy with economic growth. Result also indicates that monetary policy is more effective than fiscal policy in Pakistan. In contrast, trade policy has insignificant effect on economic growth both in the short run and in the long run. In light of the findings, it is suggested that the policy makers should focus more on monetary policy in order to ensure economic growth in the country. It is also recommended that further research should be conducted to find out such components of exports and imports which lead to the ineffectiveness of trade policy to enhance economic growth in Pakistan.
Download or read book Dollars Debt and Deficits written by Ishrat Hussain and published by . This book was released on 2004 with total page 400 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Some Thoughts on Economy Finance and Management written by Mohammad Uzair and published by . This book was released on 1974 with total page 342 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monograph comprising previously published articles on aspects of economic policy and economic planning for economic development in Pakistan - includes fiscal policies, banking, human resources planning, management, economic administration and economic growth performance, etc. References and statistical tables.
Download or read book Fiscal Policy Stabilization and Growth written by Guillermo E. Perry and published by World Bank Publications. This book was released on 2007-10-19 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fiscal policy in Latin America has been guided primarily by short-term liquidity targets whose observance was taken as the main exponent of fiscal prudence, with attention focused almost exclusively on the levels of public debt and the cash deficit. Very little attention was paid to the effects of fiscal policy on growth and on macroeconomic volatility over the cycle. Important issues such as the composition of public expenditures (and its effects on growth), the ability of fiscal policy to stabilize cyclical fluctuations, and the currency composition of public debt were largely neglected. As a result, fiscal policy has often amplified cyclical volatility and dampened growth. 'Fiscal Policy, Stabilization, and Growth' explores the conduct of fiscal policy in Latin America and its consequences for macroeconomic stability and long-term growth. In particular, the book highlights the procyclical and anti-investment biases embedded in the region's fiscal policies, explores their causes and macroeconomic consequences, and asesses their possible solutions.
Download or read book Pakistan 2007 Article IV Consultation Staff Report Staff Statement Public Information Notice on the Executive Board Discussion and Statement by the Executive Director for Pakistan written by International Monetary Fund and published by INTERNATIONAL MONETARY FUND. This book was released on 2008-01-17 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pakistan's economy continued to perform strongly owing to sound macroeconomic management and structural reform. Executive Directors advised that tight fiscal and monetary policies are required to reduce inflation and the external current account deficit while lessening pressures on real interest rates. They welcomed the enactment of the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CLT) ordinance. They underscored the need to modernize the energy sector's regulatory and tariff framework and revive the privatization process. Directors urged action to strengthen public financial management.
