The Impact of Time and Regime on External Debts of Pakistan: An Empirical Study

Ahmed RR, Vveinhardt J, Ahmad N, (2016) ‘The Impact of Time and Regime on External Debts of Pakistan: An Empirical Study’, paper presented at the proceedings of the 27th International-Business-Information-Management-Association Conference (IBIMA), Milan, Italy; 4-5 May, pp. 486-497

50 Pages Posted: 25 Jun 2016

See all articles by Rizwan Ahmed

Rizwan Ahmed

Indus University

Jolita Vveinhardt

Lithuanian Sports University

Nawaz Ahmad

RTS (Research, Trainings, and Solutions); Institute of Business Management (IoBM)

Date Written: May 5, 2016

Abstract

The focus of this research is in the area of Financing/Loans acquired by Pakistan over the decades. This study is very important for forecasting the future of Pakistan’s financial strength. The data was collected from the State Bank of Pakistan, period from 1949 to 2010. The findings from this research provide the evidence that the external debts are growing in a very fast rate, which will create a great hurdle in coming future for Pakistan. The main conclusions drawn from this research is that the external debts are growing at an average rate of 14.40% per year and also demonstrated that if external debts increase by PKR 1 million in a year, in the next year it will increase by PKR 1.155 million. This research recommends that the outstanding debt can be taken care a special attention when fiscal and monetary policies are made in which external debt repayment should be given high importance along with the strict control over corruption. Government must introduce easy trade policies, which may boost up the exports in order to generate balance of trade, which may help in repaying the external debts.

Keywords: External Debts, Forecasting, Evidence, Monetary Policy, Fiscal Policy, Time & Regime

JEL Classification: B23, E5, H6, O5

Suggested Citation

Raheem, Ahmed and Vveinhardt, Jolita and Ahmad, Nawaz, The Impact of Time and Regime on External Debts of Pakistan: An Empirical Study (May 5, 2016). Ahmed RR, Vveinhardt J, Ahmad N, (2016) ‘The Impact of Time and Regime on External Debts of Pakistan: An Empirical Study’, paper presented at the proceedings of the 27th International-Business-Information-Management-Association Conference (IBIMA), Milan, Italy; 4-5 May, pp. 486-497. Available at SSRN: https://ssrn.com/abstract=2800113

Ahmed Raheem (Contact Author)

Indus University ( email )

ST-2D, Block 17, Gulshan-e-Iqbal
Gulshan-e-Iqbal
Karachi, Sindh 75300
Pakistan

Jolita Vveinhardt

Lithuanian Sports University ( email )

Sporto str. 6
Kaunas, LT-44221
Lithuania

Nawaz Ahmad

RTS (Research, Trainings, and Solutions) ( email )

9th Nishat Lane, DHA 6
9th Nishat Lane, DHA 6
Karachi, Sindh 75500
Pakistan
00923009292422 (Phone)

Institute of Business Management (IoBM) ( email )

Plot # 84
Korangi Creek
Karachi, Sindh 75190
Pakistan

HOME PAGE: http://www.faculty.iobm.edu.pk/staff/nawaz-ahmad/

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