*

ABSTRACT:Fiscal policy is important for economic development of any count ry.Islamic fiscal policy pursuesdefiance and peace so that the society l ive with a sense of security and preform dynamic economicactivities.To maintain economic development and price stability is another imperative entity of ficalpol icy.It redu ces ine qua lit y of i nco me a nd we al th in ord er to promo te ge neral w elfare o f th ecommunity.Welfare of public by providing education,health and social care is one of the majorobjectives of fiscal policy.There are several intrinsic shortcomings in the fiscal policy of Pakistanwhich are obstructing its economic development.It is a fact that we are suffering from economicinstability for not practicing the Islamic teachings.If we since rely act upon Islamic injuctions we cancertainly achieve economic development.For an all.embracing econ omic stability and progress it isimperative to follow the economic injunctions in full.

Key words: Fiscal Policy, Economic, Development, Pakistan, Islam.

sadiagulzar_lcwn@yahoo.com *

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(http://www.satp.org/satporgtp/countries/pakistan/da

tabase/Droneattack.htm retrived 25 April 2015)

Principles of Macro Economics , 2001, New York, Frank,Robert H. & Ben S. Bernanke, New York:Mc Graw-Hil,p .G-2; Mankiw, N.Gregory (2000), macro

economic, New York: Worth Publishers, p.536.

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Government of Pakistan,Pakistan Economic Survey 2007-08,Islamabad:Ministary of

Finance,p.65;Pakistan Economic Survey 2014-15,p.70

Economy: Understanding the Wheat Crises,Daily Time, 22 Jan 2008

947-85,London & New York: 1Noman. O, (1988)The Political Economy of Pakistan

KPI, p.41.

Amjad.R, Indust rial Concentrat ion and Economics Power,Pakistan Economic and Social Rev iew,Vol:XIV,No:1-4,pp259-260

Daily Time, 23 June 2015

/ / /

http://www.finance.go v.pk/budget/Final_Budget_Speech_11_12_urdu.pdf retrieved 6 July 2013

http://www.f inance.gov.pk/budget/budget_Speech _12_13_urdu_ versio n.pdf retrieved 6 july 2013

State Bank of Pakistan,Annual Report 2013-14,p.87 / /

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Pakistan Economic Survey 1980-81,pp.264-265

Ibid ,1980-81,p .265

State Bank of Pakistan,Annual Report 2007-08,p.127 Pakistan Economic Survey 2014-15,Economic and Social indicators,p.1

http://www.finance.gov.pk/survey/chapters_15/Economic_Indicators.pdf retrieved 25

june2015

Pakistan Economic Survey 1982-83,p.5;Ibid,1983-84, p.13

Structural Adjustment and Poverty in Pakistan (2003),(Director:A.R

Kamel),Islamabad: Pakistan Institute of Development,p.6

Pakistan Economic Survey 2000-2001,Statistical Annexure,p.2

Ibid, 2002-2003,p.5 Ibid

Ibid, 2000-2001,Statistical Annexure,p.2 Ibid, 2014-15, Economic and Social, indicators, p.1.

Ibid ,1993-94,pp.121-122;1995-96,p.131

Ibid, 2009-10,pp.60-61 Ibid, 2014-15, Economic and Social, indicators, p.6.