Impact of Public Debt on Economic Growth

Abstract

This research presents the impact of public debt on economic growth. The research proceeds with the research problem and objectives of the study. Primary data and secondary data were used for this research. Primary data was collected by the help of a questionnaire and interviews. Where as secondary data was collected from different websites, research articles, books and financial institutions. A Questionnaire was developed with guidance of relevant researches conducted before. A survey was conducted in the area of Islamabad and Rawalpindi. Simple statistical tools were used for constructing frequencies and making tabulations. For analysis of financial data, graphs, charts and tables were used. Data collected was analyzed and it is concluded that public debt affect the economic growth of a country. And there exists strong negative relationship between public debt and economic growth of a country. The main cause of high public debt in Pakistan is imprudent use of borrowed resources.