Public Debt Management and Its Impact on GDP with Reference to IMF Bailouts: A Case Study of Pakistan

Abstract

Pakistan has been struggling with large amounts of public debt similar to many other developing nations, which has serious results for its stability and economic progress. In order to maintain sustainability and reduce unfavourable effects, managing public debt is a difficult task that calls for appropriate strategies and policies. In Pakistan, the government has resorted to numerous IMF bailouts to deal with the country's growing debt load. The success of these bailouts and how they will affect GDP growth are still unknown. To comprehend the effectiveness of debt management policies and their effects on economic growth, it is critical to investigate the relationship between public debt management and GDP growth in Pakistan, specifically in the context of IMF bailouts. Another important factor to take into account is the significance of IMF bailouts in resolving Pakistan's financial problem and their effect on the nation's economic development. IMF bailouts offer financial support to nations with severe balance of payment issues. It is critical to assess if IMF bailouts have been successful in addressing Pakistan's debt problems and whether the corresponding policy changes have had a positive or negative impact on GDP growth. By providing a thorough examination of the connection between state debt management and GDP growth in Pakistan, with an emphasis on the effects of IMF bailouts, this study seeks to close the existing research gap. The study will use a mixed-methods approach that combines qualitative analysis of policy papers, reports, and expert opinions with quantitative analysis of macroeconomic data. This study aims to offer useful insights for policymakers and economists in Pakistan and other nations facing similar problems by examining the efficacy of debt management techniques and assessing the influence of IMF bailouts on GDP growth. A thorough investigation is required to analysis Pakistan's public debt management and its effects on GDP development, particularly in light of IMF bailouts. While IMF bailouts offer financial aid but often come with policy requirements, good public debt management is essential for maintaining economic growth and stability. Understanding the relationship between governmental debt management and GDP growth, as well as the effectiveness of IMF bailouts will aid policymakers to deal with the debt issue and sustainable economic development in Pakistan.