Most of the studies on the impact of debt on Pakistan economy are backdated to a decade and hence the need to re-investigate the impact to ascertain the level of effect is encouraged. To investigate the target research, the neoclassical growth equation was expanded by augmenting the equation with other variables of interest (Trade openness and FDI) with the intent of proffering solution in reviving the economy via policy implication. Pakistan's annual data of 1970–2016 were estimated with ARDL and Granger causality approaches for both short- and long-run effects. The main variable external debt is negatively and significantly related to Pakistan's GDP both in the short and long run; Trade openness has a positive and significant impact on the GDP; FDI also has a negative and significant relationship with GDP in the short run but a positive and significant impact on GDP in the long run; and investment has a significantly positive impact on GDP in the short run. Basically from the findings, it is observed that the debt swelling is of hurting effect to the economy. The policy implication should be framed around encouraging the trade openness, but with care, as the first lag is depicting negative impact, FDI must be encouraged with an eye on its long-term impact on the economy and finally, investment should be given maximum attention in order to crowd out the effect of external debt in the economy.

中文翻译：

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维持负债经济的补救措施：巴基斯坦经济的时间序列分析

大多数关于债务对巴基斯坦经济影响的研究都可以追溯到十年前，因此鼓励重新调查影响以确定影响水平的必要性。为了调查目标研究，通过用其他感兴趣的变量（贸易开放和 FDI）扩充方程来扩展新古典增长方程，目的是通过政策暗示提供振兴经济的解决方案。巴基斯坦 1970-2016 年的年度数据是根据短期和长期影响的 ARDL 和格兰杰因果关系方法估算的。主要可变外债与巴国内生产总值在短期和长期均呈显着负相关；贸易开放对 GDP 具有积极而显着的影响；FDI在短期内也与GDP呈负相关且显着，但在长期内对GDP具有显着正向影响；投资在短期内对GDP有显着的正向影响。从调查结果来看，基本上可以看出，债务膨胀对经济造成了伤害。政策含义应以鼓励贸易开放为框架，但要谨慎，因为第一个滞后描述的是负面影响，必须鼓励 FDI 并着眼于其对经济的长期影响，最后，应最大限度地关注投资以排除外债对经济的影响。据观察，债务膨胀对经济造成了伤害。政策含义应以鼓励贸易开放为框架，但要谨慎，因为第一个滞后描述的是负面影响，必须鼓励 FDI 并着眼于其对经济的长期影响，最后，应最大限度地关注投资以排除外债对经济的影响。据观察，债务膨胀对经济造成了伤害。政策含义应以鼓励贸易开放为框架，但要谨慎，因为第一个滞后描述的是负面影响，必须鼓励 FDI 并着眼于其对经济的长期影响，最后，应最大限度地关注投资以排除外债对经济的影响。