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An assessment of debt sustainability in scenario of Pakistan’s debt burden


  • Ejaz, Khurram
  • Javid, Attiya Yasmin


The objective of the study is to assess and analyze sustainability of overall public debt and sustainability of external debt of Pakistan using the debt dynamic equation for the period 1971-2008. The study has analyzed public debt sustainability through interest rate and growth rate differential and level of primary budget balance while external debt sustainability is assessed through interest rate on debt and growth rate of exports differential and current account balance. The results of the study indicate that primary budget deficit and current account deficit have played major role in accumulation of public debt and external debt of Pakistan respectively. The study concludes that public debt and external debt of Pakistan is sustainable in few years and unsustainable in many unsustainable.

Suggested Citation

  • Ejaz, Khurram & Javid, Attiya Yasmin, 2011. "An assessment of debt sustainability in scenario of Pakistan’s debt burden," MPRA Paper 37563, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:37563

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    Cited by:

    1. Shruti SHASTRI & A.K. GIRI & Geetilaxmi MOHAPATRA, 2017. "An empirical assessment of fiscal sustainability for selected South Asian economies," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(610), S), pages 163-178, Spring.
    2. repec:agr:journl:v:xxiv:y:2017:i:1(610):p:163-178 is not listed on IDEAS

    More about this item


    Public debt; External Debt; Sustainability; Debt dynamic equation; Primary budget deficit; current account balance;

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics

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