Estimates of Noncorporate Private Saving in Pakistan: 1949-1962

Stephen R. Lewis, Jr., Mohammad Irshad Khan

Abstract


This paper presents some partial and preliminary estimates of
saving of the noncorporate private sector of the Pakistan economy. It is
a part of a joint effort to make some more detailed estimates of saving
for the entire economy, in which the Institute of Development Economics
has been cooperating. It is hoped that more complete estimates for the
whole economy will be available in the near future, but due to the
importance of saving in the economic develop¬ment policy and planning,
we feel it is worthwhile to present the data and analysis for this
sector. There are estimates of saving in Pakistan for the period 1955/56
to the present, but these have been calculated in a very indirect
manner, and they present no breakdown as to the sources of saving by
sector. The procedure followed in the Planning-Commission estimates in
the Mid-Plan Review1 was to estimate gross investment and to deduct from
gross investment all "deve¬lopment imports" financed from abroad. As has
been pointed out by John H. Power in his evaluation of the Mid-Plan
Review, this method of estimating domestic saving is incorrect2, and he
has presented some adjusted figures for the first two years of the
Second Plan. The Planning-Commission estimation pro¬cedure, even if the
proper definitions are used, is likely to result in serious errors in
the volume of gross saving, and it does not give any information on the
sources of domestic saving.

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DOI: https://doi.org/10.30541/v4i1pp.1-50

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