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The object of this study is to examine the determinants of Foreign Direct Investment (FDI) and its impact on the economy of Pakistan over the period from 1993 to 2012. Two Regression Models have been developed, one; to verify the impact of various variables on the inflow of FDI and the other; to check of effect of FDI on economic growth in Pakistan. The Annual Data of various variables have been collected through various sources like Economic Survey of Pakistan, Economic and Business Review, State Bank of Pakistan and World Bank Indicator. In the 1st Model, the Trade Openness (TO) Gross Domestic Product (GDP), Current Account Balance (CAB), and Foreign Remittances (FREM) shows the insignificant impact on FDI inflow in Pakistan. The 2nd Model comprises, the GDP was dependent variable and the independent variables were Foreign Direct Investment (FDI) Trade Openness (TO)), Labour Force (L. Force) and Domestic Investment (DI). All the independent variables show the insignificant impact on GDP with positive and negative sign of correlation. It has been suggested that Government of Pakistan should take serious measure to improve the economy of Pakistan and improve the policies for foreign investors. The E-views and SPSS software have been used to analyse the data. [ABSTRACT FROM AUTHOR]

The Small and Medium Enterprise Sector can be termed as a revenue generation and employment creation in developing economies. The sector is highly cost effective as compared to large scale industries. After independence, Pakistan started with a very weak share of 34 industrial units. During the last six decades economic managers, realizing importance of the small and medium enterprises as a real source for the improvement of economy, formulated various policies for the development of the sector with basic emphasis on the optimal utilization of domestic raw material. In light of those policies, financial and technical institutions were established to provide advisory services and to assist in obtaining credit, training and basic facilities for the development of small and medium enterprises, however, the sectoral contribution of Small and Medium Enterprise Sector in the gross domestic product is not appreciable as against large scale industry, which reveal that the specific needs for the promotion of small and medium enterprises have not been answered in appropriate manner. Consequently, small and medium enterprises of Pakistan are unable to take part in the growing markets of the world. According to the Economic Survey of Pakistan, 2013 the sector constitutes over 90 percent of business in Pakistan and being highly labor intensive, provide employment up to 83 percent work force of the non agricultural labor, contributes 40 percent towards the country's gross domestic product, accounts for 35 percent of the value added in the manufacturing industry and generates 25 percent of manufacturing sector export earnings. The purpose of this paper is to highlight role of the measures and programs in respect of financial, managerial and technical assistance were launched by the economic managers and planners of Pakistan for the improvement of Pakistan's Small and Medium Enterprises. [ABSTRACT FROM AUTHOR]

The national savings and credit to private sector played important role in economic growth and development of Pakistan. The impact of savings and credit to private sector on economic growth in Pakistan was evaluated in the present study. The time series data for the period of 1973 to 2007 was used to evaluate the impact of savings and credit on economic growth. The data was obtained from various issues of Economic Survey of Pakistan, Federal Bureau of Statistics and State Bank of Pakistan. Augmented Dickey Fuller (ADF) tests were used to check the stationarity of the variables. The long term coefficients were estimated using ARDL approach. The error correction model (ECM) was used for the short run analysis. The results showed that increase in real gross domestic product was 5.59 percent due to one percent increase in credit to private sector. The estimated coefficient of national saving was 1.015 showed that increase in real gross domestic product was 1.015 percent due to one percent increase in national savings. In the short run, the coefficient of credit to private sector was 5.7 and significant. In this way, the credit to private sector has significant impact upon economic growth in the long run but also in the short run. Therefore, government is suggested to formulate the appropriate policies to enhance the savings and credit in the country. [ABSTRACT FROM AUTHOR]

Purpose: Despite the reasonable surge of remittances and imports in Pakistan, very less attention has been given to this area. To bridge the gap, this study aims to explore the relationship of worker's remittances and imports of Pakistan at both aggregate and disaggregate levels. Also, this research focuses on investigating whether remitted income substitute or complement imports of the country. Design/methodology/approach: To achieve these goals, the authors use annual time-series data from 1974–2016. Findings: Empirical findings obtained from the autoregressive distributed lag model method suggest that remittances substitute imports in Pakistan. It is also found that remittances not only substitute aggregate imports but also act as a substitute at different disaggregated levels. Further, it is documented that higher economic growth increases imports, whereas the real exchange rate for imports is inversely related to imports at both levels. Originality/value: These empirical findings also draw some substantive policy implications for the state owners and policy advisers. [ABSTRACT FROM AUTHOR]

The purpose of current research is to investigate the effects of terrorism, corruption and market size by Gross Domestic Product (GDP) growth rate on inward Foreign Direct Investment (FDI) in the context of Pakistan over the period 1973–2017. After checking the integration order of time series data using the most popular test. Augmented Dickey Fuller (ADF), we implemented the Auto regressive Distributed Lag (ARDL) bound testing method. The empirical results show that both corruption and terrorism have significant negative impacts, while market size has a significant positive effect on FDI inflows in Pakistan. The findings suggest that policy makers and the government must pay attention to these distressing determinants of FDI. A good control over corruption and terrorism will attract more FDI in Pakistan which will help Pakistan in achieving her macroeconomic goals such as enhancing economic growth and employment generation among others. [ABSTRACT FROM AUTHOR]

The present study is based on the objective to see the effect of trade and financial liberalization on economic growth of Pakistan. Specifically two proxies for each trade and financial openness was taken for Pakistan that are common in this area of research. Augmented Dickey-Fullar and Philip- Perron tests for stationary executed and all variable are found stationary at first difference. Autoregressive Distributive Lag model was applied because of its certain advantages followed by bound test of co-integration which concluded with no co-integration or long run dynamic relationship of GDP the dependent variable with selected predictors with two proxies each for trade and financial liberalization. Trade liberalization measures were export to GDP ratio and ratio of exports plus imports to GDP while net Foreign Direct Investment as percentage of GDP and foreign assets of central bank were taken as measures for financial liberalization. The results showed that the both measures of trade liberalization found significant and more elastic and net FDI found insignificant and foreign assets with central bank was found statistically significant but less elastic. Model was found stable successfully validating the necessary stability checks like CUSUM and CUSUMSQ, heteroscedasticity, autocorrelation and normality tests. The study is important and significant in understanding the behavior of liberalization measures in determining GDP in Pakistan but it's an opening debate for many other measures for future research where literature is enriched and suggests as many factor of liberalization determining economic performance. [ABSTRACT FROM AUTHOR]

The purpose of the research is to examine the causal relationship between stock prices and the variables representing the real sector of the economy for example real GDP, and real investment, in Pakistan. In this study, annual data is used (quarter-wise) from December 1980 to June 2007 and the correlation analysis has been applied, to investigate the relationship. For better understanding of the Market's Behavior, data has been grouped in to Liberalization periods; Pre-liberalization and Post-Liberalization. The stock market in Pakistan provides an average quarterly return of 2.86%. The average annual growths in real variables are just lower than 1 % for GDP and returns slightly over 1% in investments. A comparison of the descriptive statistics between the two sub-periods indicates decline in the average growth in real variables. Real GDP fell ,and real investment also decreased. The decline is significant both in GDP and investment. Though the magnitude of the average growth in stock price index increased in the second period it is not significantly different from that of the first period. The descriptive statistics indicates a much higher expansion in stock prices relative to real variables. However, the stock prices also experienced higher volatility during the sample period whereas the real variables seem to be stable. [ABSTRACT FROM AUTHOR]

The article discusses the economic conditions in the urban and rural areas of Pakistan both in national and provincial levels. It examines the share of urban and rural areas based on the national gross domestic product (GDP) and the provincial gross rating point (GRP). It presents a table that lists the regional allocations for different sectors and sub-sectors in the country.

This study examines the key determinants of FDI inflows in Services sector of Pakistan, using time series data (quarterly) for the period of 1996Q1-2008Q4. To check the sationarity of the data, ADF test has been applied. Co-integration and Error Correction Model (ECM) is usedfor estimation of the data. This study found that Gross Domestic Fixed Capital formation (GDFCF), Inflation Rate(INF), Current Account Balance(CAB), Exchange Rate (ER), and Per Capita Income (PC) are main factors of FDI inflows in services sector of Pakistan. This study reveals that GDFCF, INF and PC are found statistically significant with positive signs. CAB and ER are also statistically significant with negative sign. While, trade openness (TO) is found statistically insignificant but with negative sign. [ABSTRACT FROM AUTHOR]

This study explores the interlinkages among population, environment and poverty and presents empirical evidence in a developing country like Pakistan. It gives alternative views on population environment linkages. It explains poverty trap, market based harmony, and dual effect of poverty on the basis of a link between population growth and natural resource degradation. In addition, the paper also highlights social and political instability through population-poverty-environment spiral. It also presents empirical evidence on population-environment-poverty nexus in Pakistan. It also compares environmental sustainability index and human development index for selected Asian countries. The paper also gives scores for different components of environmental sustainability index for Pakistan and compares these with India. The paper concludes that the causal relationship between poverty and environment works in both directions, often through changes in GDP and population. Population stress does not have any significant direct effect on all aspects of environmental status in Pakistan. [ABSTRACT FROM AUTHOR]

This paper investigates the direction of causation between GDP representing economic growth, exports and its different categories, imports and world income. After experiencing vigorous import-substitution in the past decades, Pakistan adopted an outward-looking strategy in the late 1980s with an emphasis on export promotion. A strong and stable relationship between GDP and exports and bi-directional causality between manufactured exports and GDP has been found. Export promotion policy is pursued consistently with an emphasis on manufactured exports and this is most likely to contribute adequately to economic growth in the long run. [ABSTRACT FROM AUTHOR]