Budget deficit fuels inflation in Pakistan, urgent need for revenue sources.
The article examines how budget deficits affect inflation in Pakistan. The researchers looked at data from 1985 to 2017 and used a method called Auto Regressive Distributed Lag Model. They found that budget deficits, GDP growth, and money supply increase inflation, while unemployment and exchange rates decrease it. The study suggests that the government should focus on creating new sources of revenue instead of relying on foreign financing.