Impact of Fiscal Policy on Poverty Reduction in Pakistan
DOI:
https://doi.org/10.55737/rl.2025.41134Keywords:
Poverty, Tax Rate, HDI, PakistanAbstract
This research articles explores the relationship between trade, inflation, investment, tax rate and HDI for Pakistan economy. Data is used form 1990-2019. The study used relevant tools of econometrics for estimation. The employed techniques include the unit root analyses and bound testing. Our results show that trade and inflation have a positive impact on HDI. On the other hand, consumption and tax has a negative impact on HDI. Our results are important for the policymakers of Pakistan. These results could be used for policy making in Pakistan to eradicate poverty. This paper tested the connection between poverty and its factors in Pakistan. The paper uses data for 1990-2019 and applied the ARDL approach. Our results showed several important relationships among variables. We got to know that trade and inflation are positive in their effects on HDI. On the other hand, general government consumption expenditure (GGCE) and tax revenue are negatively associated with HDI in Pakistan. Our results are important for policymaker of Pakistan.
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