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EMPIRICAL ANALYSIS OF THE IMPACT OF QUASIFISCAL ACTIVITIES IN PAKISTANS ELECTRICITY SECTOR ON THE FISCAL DEFICIT

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03 Pages : 20-32

http://dx.doi.org/10.31703/gssr.2024(IX-IV).03      10.31703/gssr.2024(IX-IV).03      Published : Dec 2024

Empirical Analysis of the Impact of Quasi-Fiscal Activities in Pakistan's Electricity Sector on the Fiscal Deficit

Abstract

    This study aims to empirically investigate the impact of quasi-fiscal activities in the electricity sector on Pakistan's fiscal deficit, using time series data from 1973 to 2022. The Bound and ARDL tests are employed to analyze the long-run cointegration among the variables. The results indicate that the variables are cointegrated in the long run and that the one-year lagged values of hidden costs and exchange rates significantly impact the fiscal deficit both in the long and short run. Trade openness has a statistically significant impact on the fiscal deficit in the long run but no significant impact in the short run. GDP does not show a statistically significant impact on the fiscal deficit in either the long or short run. The study suggests that the government should encourage the privatization of distribution companies (DISCOs), phase out untargeted subsidies, promote renewable energy, and maintain a stable exchange rate.

    (1) Sabeel Khan
    Ph.D. Scholar, Department of Economics, Islamia College Peshawar, KP, Pakistan.
    (2) Fazale Wahid
    Assistant Professor, Department of Economics, Islamia College Peshawar, KP, Pakistan.
    (3) Tanweer Ahmed
    Visiting Faculty, Development Studies, Department of Economics, University of Peshawar, KP, Pakistan.
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Cite this article

APA

    APA : Khan, S., Wahid, F., & Ahmed, T. (2024). Empirical Analysis of the Impact of Quasi-Fiscal Activities in Pakistan's Electricity Sector on the Fiscal Deficit. Global Social Sciences Review, IX(IV), 20-32. https://doi.org/10.31703/gssr.2024(IX-IV).03

CHICAGO

    CHICAGO : Khan, Sabeel, Fazale Wahid, and Tanweer Ahmed. 2024. "Empirical Analysis of the Impact of Quasi-Fiscal Activities in Pakistan's Electricity Sector on the Fiscal Deficit." Global Social Sciences Review, IX (IV): 20-32 doi: 10.31703/gssr.2024(IX-IV).03

HARVARD

    HARVARD : KHAN, S., WAHID, F. & AHMED, T. 2024. Empirical Analysis of the Impact of Quasi-Fiscal Activities in Pakistan's Electricity Sector on the Fiscal Deficit. Global Social Sciences Review, IX, 20-32.

MHRA

    MHRA : Khan, Sabeel, Fazale Wahid, and Tanweer Ahmed. 2024. "Empirical Analysis of the Impact of Quasi-Fiscal Activities in Pakistan's Electricity Sector on the Fiscal Deficit." Global Social Sciences Review, IX: 20-32

MLA

    MLA : Khan, Sabeel, Fazale Wahid, and Tanweer Ahmed. "Empirical Analysis of the Impact of Quasi-Fiscal Activities in Pakistan's Electricity Sector on the Fiscal Deficit." Global Social Sciences Review, IX.IV (2024): 20-32 Print.

OXFORD

    OXFORD : Khan, Sabeel, Wahid, Fazale, and Ahmed, Tanweer (2024), "Empirical Analysis of the Impact of Quasi-Fiscal Activities in Pakistan's Electricity Sector on the Fiscal Deficit", Global Social Sciences Review, IX (IV), 20-32

TURABIAN

    TURABIAN : Khan, Sabeel, Fazale Wahid, and Tanweer Ahmed. "Empirical Analysis of the Impact of Quasi-Fiscal Activities in Pakistan's Electricity Sector on the Fiscal Deficit." Global Social Sciences Review IX, no. IV (2024): 20-32. https://doi.org/10.31703/gssr.2024(IX-IV).03