FISCAL POLICY IN PAKISTAN: THE POLITICS OF DISTRIBUTION IN A CHANGING LANDSCAPE

Authors

  • Muhammad Abdullah Department of Economics, University of Sahiwal, Sahiwal. Pakistan
  • Ayza Shoukat Department of Economics, University of Sahiwal, Sahiwal. Pakistan
  • Muhammad Gulzaib Chaudhary GC University, Lahore. Pakistan

DOI:

https://doi.org/10.52567/pjsr.v3i3.237

Abstract

Fiscal policy aims primarily at controlling aggregate demand but in developing countries, the aims and objectives of fiscal policy are much extended. Due to the important role of fiscal policy in maintaining macroeconomic stability, it must be carefully designed in a way to accelerate investment, on one hand, and on the other hand, it must redistribute the resources from socially less desirable to more desirable investment channels. The efficient allocation and distribution of resources can help to narrow the income gap and economic discrepancies among different social groups. Instead, if the resource distribution is politicized, the whole picture would be reversed. The present study analyzes the objective of equitable distribution of income and wealth with the practice of political distribution in Pakistan. Despite the objective of equitable distribution of income and wealth, political actors from federal and provincial governments spend public funds to achieve political goals rather than on development-oriented programs. These investments secure the political interests of those actors. Also, the selection of projects and the provision of subsidies are politicized.

Author Biographies

  • Muhammad Abdullah, Department of Economics, University of Sahiwal, Sahiwal. Pakistan

    Assistant Professor

     

  • Ayza Shoukat, Department of Economics, University of Sahiwal, Sahiwal. Pakistan

    Lecturer

     

  • Muhammad Gulzaib Chaudhary, GC University, Lahore. Pakistan

    Ph.D. Scholar and Lecturer,

     

     

Additional Files

Published

2021-09-30

Issue

Vol. 3 No. 3 (2021): Pakistan Journal of Social Research (PJSR)

Section

Research Article

License

Copyright (c) 2022 Muhammad Abdullah, Ayza Shoukat, Muhammad Gulzaib Chaudhary

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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How to Cite

[1]
“FISCAL POLICY IN PAKISTAN: THE POLITICS OF DISTRIBUTION IN A CHANGING LANDSCAPE”, Pak. J, Soc. Sci., vol. 3, no. 3, pp. 162–169, Sep. 2021, doi: 10.52567/pjsr.v3i3.237.