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August 17, 2025Global Management Sciences ReviewOpen Access

The Impact of Fiscal Policy on Sustainable Economic Development in Pakistan

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Authors

AKA. Elsawy KhalilCairo UniversityHKHidayat Ullah KhanNational University of Modern LanguagesMWMuhammad WaqasPir Mehr Ali Shah Arid Agriculture University

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Implication

Analysis reveals fiscal policy has both positive and negative effects on GDP in Pakistan, indicating complex economic dynamics.

Key Points

  • Long-term cointegration exists between GDP and fiscal indicators, particularly government spending and tax revenues.
  • Government spending has a positive short-term impact on GDP, while tax revenues negatively affect GDP in the short run.
  • Analysis uses VECM and Johansen Cointegration methods based on data from Pakistan's Economic Survey (1990-2022).
  • Highlights significant negative impacts of budget deficit and unemployment on long-term GDP growth, pointing to interdependencies.

Cite This Study

Khalil et al. (2025) studied this question.

synapsesocial.com/papers/68a36c210a429f797332fbe2https://doi.org/10.31703/gmsr.2025(x-ii).01
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1THE IMPACT OF FISCAL POLICY ON SUSTAINABLE ECONOMIC DEVELOPMENT IN PAKISTAN2025
  2. 2Implications of Fiscal Policy on Economic Growth2024
  3. 3The Impact of Fiscal Policy on Macroeconomic Conditions in Pakistan: Insights from a Structural Vector Autoregression Analysis2024 · 1 citations
  4. 4Fiscal policy determinants impact on the economic growth with the moderating role of the exchange rate and Inflation rate: Evidence from an emerging economy2024 · 6 citations
  5. 5The Role of Government Spending and Public Debt in Shaping Pakistan's Economic Growth: A Statistical Analysis2024 · 1 citations