Market institution check and balance made the fiscal policy better. Political instability and budgetary institution effect fiscal policy. Bond market provides the information to governance body how to develop better fiscal policy. Pakistan is facing fiscal deficit due to less revenue generation, tax evasion, parallel economy, over expenditure, and poor fiscal policy. Pakistan should develop the better fiscal discipline, similar rule and regulation for every person, governance body and work properly to control fiscal deficit. Globalization provides the access to public and private sector to reach bond market for investment. Government always preferred to issue bond in domestic market. Bond market reduces cost of investor. Political condition always affects bond market and it development is slow in developing country. Bond market is a way which provides the right information to governance body to develop fiscal policy.
About Author:
Muhammad Zohaib Zahid is student of Master of Science in Management Science (MSMS) in COMSATS Institute of Information Technology Lahore Campus.
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