@article{oai:nagoya.repo.nii.ac.jp:00004697,
 author = {Waheed, Abdul},
 journal = {国際開発研究フォーラム, Forum of International Development Studies},
 month = {Mar},
 note = {Like many other developing countries, Pakistan is a highly indebted low-income country and is facing serious hardships in external debt servicing. This paper analyzes the behavior of public external debt in Pakistan and assesses the effectiveness of alternative policy measures to control its growth. The study particularly focuses on resource gap in a flow of funds framework and constructs a financial macroeconomic model of Pakistan. The model is then used to develop a medium term strategy to reduce the burden of public external debt significantly by the end of the next five years. Among the eight policy simulations, the results indicate that increase in exports, increase in taxes, reduction in bond rate, reduction in lending rate and devaluation of the currency appear to be very significant in reducing foreign borrowing and bringing the external debt to sustainable levels. The study also found that further reduction in domestic deposit rate, bank rate and required reserve ratio has less significant effects on public debt sustainability. The study concludes that continued government policy reforms and sound debt management are essential for getting out of the current external debt problem.},
 pages = {201--228},
 title = {The behavior of public external debt in Pakistan : a financial macroeconomic analysis},
 volume = {28},
 year = {2005}
}