The Importance Of Sustainable Economic Growth

1743 Words7 Pages
Sustainable economic growth is a important concern for every country. And to achieve this objective, following are the most powerful weapon to achieve the objective of economic growth is sustainable macroeconomic policies through both private and public investment to generate more wealth,employment,reduce inflation, increase productivity, national income , and finance public service provision (Saunweme & Mufandaedza, 2013). But Because of the low saving rate, low per capita income, and inefficient tax collection system, along with that Pakistan exports raw material and primary goods at low prices and import expensive goods that leads to current account deficit so due to all these factors there is a mismatch between the revenue and expenditure so to bridge the gap a country needs to borrow to finance its economic growth and due to insufficient resources domestically has brought the need for external debt and the dependence on external debt has been increasing over time. It is a source used by countries to finance their deficits and carry their economic projects to increase the living standard of the citizens and encourage sustainable growth and development External debt plays a very important role in promoting economic growth specially for the developing countries .it is helpful if the government utilizes it for capital formulation projects and invest in power infrastructure sector .on the other hand external debt affect adversely when it
Open Document