Budgetary Balance and Private Sector Activity in Pakistan: The Net Impact of Defense Expenditures on Investment in Manufacturing
Looney, Robert E.
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Toward the end of 1988, Pakistan's deteriorating resource situation caused a financial crisis many remnants of which still exist today. In 1988 the Government's budget deficit reached 8.5% of Gross Domestic Product (GDP), inflation accelerated, the current account deficit doubled to 4.3% of Gross National Product (GNP), the external debt service ratio reached 28% of export earnings, and foreign exchange reserves fell by half to $438 million, equal to less than three weeks~of imports (World Bank, 1991: ii).
Refereed Journal Article