Why do We Have Less Investment than China and India?

Hafsa Hina


1. INTRODUCTION Pakistan has experienced macroeconomic
instability since the early seventies. Because of the country’s
persistent macroeconomic uncertainty, savings and private investment
have been discouraged, resulting in low aggregate investment and
volatile output levels. It has one of the lowest investment-to-GDP
ratios that is 15 percent, about half of the South Asian average of 30
percent. Here we will review the evidence from Pakistan to inform
policymaking and local research about (1) The investment trends and
patterns in the economy and comparison with its regional counterparts.
(2) The factors which can stimulate the investment.

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DOI: https://doi.org/10.30541/v60i2pp.213-224


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