Sustainability of Public Debt in Pakistan and India
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Questions and Answers

What impact does a larger primary budget deficit have on debt accumulation over time?

It leads to higher debt accumulation over time.

Why is public debt sustainability crucial for both developing and advanced economies?

Higher levels of public debt can hinder economic growth and development.

What factors do analysts need to consider in assessing public debt sustainability?

Structure of public debt, risks from the political economy, and macroeconomic aspects.

How does a primary budget deficit impact the sustainability of public debt?

<p>A primary budget deficit needs to be financed through borrowing, adding to the overall debt burden.</p> Signup and view all the answers

Why is it important to monitor debt trends and assess sustainability despite few public defaults in recent times?

<p>It's important to monitor debt trends and assess sustainability to prevent potential future defaults.</p> Signup and view all the answers

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