Tuesday, January 17, 2012

Saving rate in Pakistan

Saving and investment are two key macro variables(indicators) with micro foundations which can
play a significant role in economic growth of a country , inflation stability and promotion of
employment especially if seen in the context of a developing nation like Pakistan. For self reliance
and growth , mobilization of  domestic resources and their efficient
utilization are the two major policy oriented focuses today . National
savings are very very  important to help maintain a higher level of investment as savings
turn into investments which is a key determinant for economic uplift and prosperity of a nation.

Current saving rate in Pakistan(as a percentage of GDP) is 14% which is one of the lowest in the world. It should be at least 20%
for long term sustainable growth.

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