Disaggregated Components of Public Debt and Economic Growth of Pakistan
Abstract
Purpose
This study analyze the impact of the disaggregated components of Public debt and its servicing on the economic growth of Pakistan. More specifically, the domestic debt components are Floating Debt, Unfunded Debt and Permanent Debt, and external debt components are Multilateral Debt, Paris Club Debt, and Bilateral Debt.
Approach and Methodology
The data has been collected from 1976 to 2021 from World Bank Indicators and Statistics department of SBP and Pakistan Economic Survey Reports. ARDL model is employed on the Karagol Model (2002).
Findings
The finding as; the floating, unfunded multilateral, bilateral debt’s component and debt servicing impact negatively on the economic growth of Pakistan except Paris Club debt and Permanent debt.
Policy Recommendations
The recommendation of using Permanent Debt among domestic debt components and Paris Club Debt as of external debt components despite using other components of public debt
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References
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