EconWatch.com > Pakistan's Moral-Hazard Economy - Project Syndicate
[Project Syndicate] These promises and pledges underscore Islamabads growing dependence on foreign assistance, which is not surprising, given that Pakistans tax-to-GDP ratio has declined to less than 9%, the lowest among the 22 largest emerging economies. They also suggest the continuance of a sort of moral-hazard approach to economic management that ensures foreign help whenever the country drives itself to the edge of an abyss.
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