Document Type : Research Article



In this study, we try to investigate the fiscal policy empirically inquiry for overall and ruralurban
poverty for Pakistan. Fiscal policy has so many economic and social implications for
every country of the world, including stable economic development, employment
opportunities, and poverty evaluation among others. Generally, supply-side and demand-side
fiscal policy tools are utilized to achieve economic and social improvement. The time-series
data is employed from1980 to 2019. To test for both short-run and long-run relationships
between fiscal variables and poverty, the Autoregressive distributed lag model (ARDL) is
adopted. Pakistan is an important case study because of the emergence of dual rural
agricultural traditional and urban modern industrial sectors. The empirical investigation
shows that government expenditure and per capita growth have a negative and significant
impact on an aggregate and rural-urban poverty. Inflation and public tax have a positive
impact on all tiers of poverty.