MACRO ECONOMICS

SIDRA ZAIDI

SHUMAILA

LUBNA

BUSHRA

LOW SAVING IN

PAKISTAN

Causes, impacts and remedial

measurements

SAVING

The amount left over when the cost of

a person’s consumer expenditure is

subtracted from the amount of disposable

income that he or she earns in a given

period of time

SAVING IN PAKISTAN

During the last two decades, the saving

rate of Pakistan has remained very low in

both terms absolute and relative to other

countries at similar stages of development.

Because of some factors financial savings

affected negatively

for example

lavishly

spending on

consumption

increased

availability of

new products

a production

structure that

has emphasized

consumer goods

production etc.

NATIONAL SAVINGS CONSIST OF THREE

COMPONENTS

Corporate

household

government savings

HOUSEHOLD SECTOR

. During the last three decades in Pakistan the

household sector has accounted for about 83

percent of the total savings.

CAUSES OF LOW SAVING IN

PAKISTAN

Vicious circle of poverty

Unemployment

Lack of foreign investment

Use of backward technology

Inflation

Backward infrastructure

IMPACTS OF LOW

SAVING IN PAKISTAN

Income

Wealth

dependency ratio

Employment and unemployment

Various categories of education

macroeconomic stability.

REMEDIAL MEASURES:

A transitory change

Government’s current expenditures

GDP growth

Provide basic nutrition and health facilities

New technologies and new training centers

Free education and scholarships

CONCLUSION

Domestic savings

Economic growth

. Pakistan’s Per capita

use of modern technologies and control on

population.