MACRO-ECONOMIC FACTORS AND PUBLIC DEBTS: A CASE OF PAKISTAN
Main Article Content
Abstract
This study examines the macroeconomic factors and public debt as well as analyze its association in the context of a developing economy like Pakistan. In addition, the present study seeks to check how variables including GDP growth, inflation, exchange rates, government finances, and trade dynamics impact the accumulation public debt. After reviewing the studies conducted in the same domain, this research quantifies the contributions of these factors to changes in public debt levels. The outcomes indicated a significant association between fiscal deficit, exchange rate depreciation, and interest rate, impacting public debt in Pakistan. Furthermore, the findings offer insights for policymakers to formulate effective fiscal and monetary policies, ensuring sustainable public debt management while fostering economic growth. Moreover, the study enriches understanding of the Pakistani context and provides valuable lessons for similar challenges faced by developing economies.
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