This paper studies whether in Pakistan the dynamic behaviour
of unemployment, inflation, budget deficit and real GDP growth is
systematically affected by the timing of elections. We cover the period
from 1973-2009. Our results can be summarised as follows: (1)
Unemployment tends to be lower in pre-election periods and tends to
increase immediately after elections, perhaps as a result of politically
motivated employment schemes. (2) Inflation tends to be lower in
pre-election periods, perhaps as a result of pre-electoral price
regulation. (3) We find increase in the governmental budget deficit,
financed by heavy government borrowings from the central bank and
banking sector during election year. (4) Real GDP growth and real
governmental investment growth declines during pre and post election
terms possibly as a result of inefficient resource allocation. JEL
Classification: D72, D78, H50, H61, E51 Keywords: Opportunistic
Political Business Cycle, Fiscal Policy, Macroeconomics, Elections,
Pakistan