Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Vol. 6 No. 2 (2018): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah

Fiscal Policy and Economic Stability: A Case of Pakistan

Farhan Ahmed (NED University of Engineering & Technology, Karachi-Pakistan)
Suman Talreja (SZABIST, Karachi-Pakistan)
Yasir Aman (Habib Bank Limited, Karachi-Pakistan)
Govinda Lohana (Bank Al Habib Limited, Karachi-Pakistan)



Article Info

Publish Date
18 Nov 2018

Abstract

This paper aims to assess the impact of fiscal policy on the economic stability within Pakistan. The findings indicate that the fiscal policy process constitutes the subsequent impact on the GDP, FDI, discount rate and CPI. That is to say, the corresponding expansionary and contractionary fiscal process has a direct and significant impact on the overall productivity, the foreign investment, the interest rates and the inflation process of the state. However, in comparison to these three variables, the exchange rate has an indirect impact and is lesser significant as compared to the other variables. The findings help stakeholders to understand how the overall fiscal policy affects the economic and business cycle of the country and how each individual is affected by the decisions made by the government executives in constituting the fiscal policy.

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Journal Info

Abbrev

JES

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Perspektif Pembiayaan dan Pembangunan Daerah (The Journal of Perspectives on Financing and Regional Development) is an open-access, peer-reviewed international forum for scientists involved in research to publish high quality and refereed papers. Jurnal Perspektif Pembiayaan focuses on ...