Fiscal Shocks and Socioeconomic Indicators: An Analysis of Welfare State of Pakistans Economy

The Pakistan’s current scenario obstructs the government and its authorities to have the objectives, goals and strategies for public interest and the development of its economy. In view of this, the research paper is designed to examine the impact of government policies on the economic and social welfare of the economy. In this context the impact of fiscal policy shocks (i.e., government expenditure shocks and tax revenues shocks) on GDP growth rate, poverty, inequality and GDP pe capita (as measure of economic well-being) is being assessed. The research paper has employed SVAR econometric model from the period 1990 to 2022 to assess the impact of fiscal policy shocks on the economic and social welfare.